Madison-based health information technology company Healthfinch will be bought by Salt Lake City-based Health Catalyst in a deal worth $40 million.
Founded in 2011, Healthfinch develops software to integrate data-based insights and analytics into electronic medical record workflows. The program is designed to take over some time-consuming tasks for health care professionals, opening up more time with patients.
“We started Healthfinch 10 years ago with a mission to build tools on EMR (electronic medical record) platforms that would simultaneously make life easier for doctors and better for patients,” co-founder and chief medical officer Lyle Berkowitz said.
“I’m proud to say we have fulfilled that vision as our products currently save immense amounts of physician time monthly, while also improving patient quality via closing gaps in care, minimizing refill errors and speeding up prescription refill turn-around time.”
The agreement with Health Catalyst, which is expected to close before Sept. 30, will be paid in cash and stock, according to a filing with the Securities and Exchange Commission.
Health Catalyst provides data and analytics to health care organizations, and Healthfinch’s technology will be used alongside Health Catalyst’s services, which include a cloud-based data operating system — which the company calls “DOS.”
Healthfinch’s technology will integrate the analytics into the electronic medical records of Health Catalyst’s customers at the point of care, Health Catalyst CEO Dan Burton said.
“We are excited to have the Healthfinch leadership team and their talented colleagues join Health Catalyst, and we are grateful for the tremendous insights, knowledge and perspectives they bring, which will accelerate the achievement of our mission to be the catalyst for massive, measurable, data-informed healthcare improvement,” Burton said.
Health Catalyst’s stock rose after the Thursday announcement, increasing from $31.20 a share at market close on Wednesday to $33.95 at close Friday.
The agreement marks Health Catalyst’s second acquisition this year, following a $27 million agreement to purchase San Francisco-based Able Health, a software company that provides measurement tracking and reporting to health care providers.
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