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According to Modern Healthcare, the company will be divided in two, absorbing its revenue-cycle management business and selling its purchasing and consulting business to the VHA-UHC Alliance, which has become one of the largest GPO players in healthcare.
The MedAssets-Precyse revenue cycle businesses, when combined, will offer hospitals an independent, highly complementary value proposition as healthcare organisations require sustainable revenue performance in preparation for the transition to a value, or risk-based reimbursement environment.
The transaction also is subject to customary closing conditions, including the approval of the merger agreement by MedAssets stockholders. Morgan Stanley, Barclays, Macquarie Group and GCI have committed financing for the deal.
Pamplona agreed to buy Precyse earlier this year from private equity firms Altaris Capital Partners and NewSpring Capital. Pamplona Capital Management, LLP manages over $US 10 billion in assets across a number of funds for a variety of clients including public pension funds, global wealth managers, multinational corporations, family offices and funds of hedge funds.
“By uniting VHA-UHC Alliance’s expertise with the MedAssets SCM segment’s proven strengths, this acquisition advances our mission to connect providers with the knowledge, solutions and expertise that accelerate performance”, said Curt Nonomaque, VHA-UHC Alliance’s president and chief executive officer.
Georgia-based MedAssets helps hospitals and other healthcare service providers cut costs.
About VHA-UHC Alliance NewCo, Inc. VHA serves over 5,200 health system members and affiliates, including virtually all of the nation’s academic medical centers, and over 118,000 non-acute customers, representing over $50 billion in purchasing volume. The companies have a number of mutual customers.
Precyse uniquely interweaves people, technology and education to remove barriers between clinical and financial operations, enabling healthcare organizations to thrive.
