Blues Plans, Lumeris Partner to Acquire Nations Largest Real-time Health Care Communication Network
Three of the nation’s leading Blue health plans that work with more than 70,000 physicians and hospitals to deliver care to more than 11 million people announced today they are partnering with health IT provider Lumeris Corp. to acquire NaviNet. NaviNet is the nation’s largest real-time communication network for physicians, hospitals, and health insurers.
Lumeris and the three Blues — Highmark, Horizon Blue Cross Blue Shield of New Jersey (Horizon), and Independence Blue Cross (IBC) — have signed an agreement to acquire NaviNet for an undisclosed price. The transaction is expected to close within 30 days, subject to customary closing conditions.
The partners believe that fully collaborative relationships among physicians, hospitals, insurers, and patients are essential to increase the quality of care, lower costs, and increase patient and clinician satisfaction in the U.S. health care system. The partnership will build on NaviNet’s best-in-class network for transactions among health care providers and insurers by launching an unprecedented initiative to deliver critical information and applications to drive accountable, value-based health care.
Today, NaviNet speeds and simplifies more than 50 kinds of administrative, financial, and clinical transactions among three-quarters of America’s physicians, 3,800 hospitals, and dozens of the nation’s largest health insurers, including Highmark, Horizon, and IBC. The acquisition will position NaviNet to expand the customers served by its real-time communications network.
Lumeris has created the health care industry’s first accountable care delivery platform. Built in the cloud from its creation, this innovative solution provides enriched clinical data, financial information, and expertise to support new payment models that reward improved outcomes, enhanced patient safety, and increased physician and patient satisfaction, while lowering overall health care costs.
Through the new partnership, NaviNet will leverage its real-time communication network and Lumeris’ accountable care delivery platform to ease the adoption of new accountable care models throughout the country. All over the nation, health plans, including Highmark, Horizon, and IBC, are developing new value-based payment models that reward physicians for highly coordinated, high-quality accountable care. The integration of NaviNet and Lumeris’ capabilities would allow plans to develop next generation accountable care delivery systems to contain costs and improve quality, while continuing to handle administrative transactions easily and cost-effectively.
“Facilitating better care collaboration has been a huge focus for us and this acquisition clearly demonstrates that others share our vision and are willing to push it to the forefront. We’re thrilled to be working alongside such industry leaders and look forward to collectively setting the standard for accountable care,” said NaviNet’s President and CEO Bradley J. Waugh.
NaviNet connects a network of 70,000 physicians and hospitals throughout the service areas of Highmark, Horizon, and IBC, as well as more than 75 percent of physicians in the U.S. Together, the partners are committed to providing physicians and hospitals with the tools and information they need to jointly manage better clinical outcomes and financial risk. However, the accountable care solutions will be available to all NaviNet customers, including insurers, hospitals, physicians, and other care providers.
“This accountable care solution will enable NaviNet’s customers to serve as an information partner with physicians and hospitals, helping them facilitate all the administrative, clinical, and financial tasks necessary to deliver more accountable care,” said Mike Long, CEO of Lumeris. “Physicians, their patients, and health plans will all benefit from this unprecedented initiative — the largest in the country supporting the accountable care movement that is transforming the U.S. health care system.”
Said IBC’s President and CEO Daniel J. Hilferty: “Independence Blue Cross relentlessly focuses on raising the quality and lowering the cost of care that our members receive. But our nation’s current health care system of fragmented and uncoordinated care results in poor communication, incomplete sharing of information, and inefficiency — which undermines accountability.
“By building on NaviNet’s success, this exciting, new collaboration can provide physicians and hospitals easy access to the information and tools they need to move into this new era of accountable care, which we are confident will bring greater satisfaction to our customers and their doctors,” said Hilferty.
NaviNet, America’s largest real-time healthcare communications network, securely links leading health plans, industry partners and the government to hundreds of thousands of physicians, clinicians and other healthcare professionals. More than 75 percent of the nation’s physicians are enrolled in the NaviNet Network, which touches 121 million covered lives. NaviNet’s care collaboration solutions and services for unified patient information management (UPIM) address the full lifecycle of healthcare data management by providing single-source access to patient-centric administrative, financial and clinical information to reduce costs, increase efficiencies and improve quality of care. For more information, or to sign up for NaviNet, please visit www.NaviNet.net or call 617-715-6000 or 800-805-7569.
Lumeris provides the information technology, guidance, and operational services necessary for health plans and hospitals to transform their organizations into high-performing accountable delivery systems. The company’s revolutionary Accountable Delivery Platform integrates data from disparate systems across the continuum of care, provides complete visibility into the clinical and financial performance of the enterprise, and delivers applications and information to key stakeholders and providers at the point of thought. Lumeris was launched five years ago by a team of health care and technology leaders led by John Doerr, a leading venture capitalist who has launched some of the world’s most successful companies, including Google, Amazon and WebMD. To learn more visit www.lumeris.com or call 1-888-LUMERIS.
About Independence Blue Cross
Independence Blue Cross is the leading health insurer in southeastern Pennsylvania. Nationwide, Independence Blue Cross and its affiliates provide coverage to nearly 3.1 million people. For 74 years, Independence Blue Cross has offered high-quality health care coverage tailored to meet the changing needs of members, employers, and health care professionals. Independence Blue Cross's HMO and PPO health care plans have consistently received the highest ratings from the National Committee for Quality Assurance. Independence Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association. Visit us at ibx.com. Like us on Facebook. Follow us on Twitter @ibx.
Highmark, Inc., based in Pittsburgh, is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. Highmark serves 4.8 million members in Pennsylvania and West Virginia through the company's health care benefits business and is one of the largest Blue plans in the nation. Highmark has 19,500 employees across the country. For more than 70 years, Highmark's commitment to the community has consistently been among the company's highest priorities as it strives to positively impact the communities where we do business. For more information, visit www.highmark.com.
About Horizon Blue Cross Blue Shield of New Jersey
Horizon Blue Cross Blue Shield of New Jersey, the state’s oldest and largest health insurer, is a tax-paying, not-for-profit health services corporation, providing a wide array of medical, dental, and prescription insurance products and services. Horizon BCBSNJ is an independent licensee of the Blue Cross Blue Shield Association, serving more than 3.6 million members with headquarters in Newark and offices in Wall, Mt. Laurel, and West Trenton. Learn more at www.HorizonBlue.com.
Marlin & Associates acted as a financial advisor to Navinet.
About Marlin & Associates
Marlin & Associates Holding LLC is a boutique investment banking and strategic advisory firm specializing in acquisitions and divestitures of U.S. and international middle-market firms that provide technology, digital information and healthcare-related products, technology and services. The firm is headquartered in New York, NY and has additional offices in Washington, DC; Toronto, Canada; and Hong Kong. Further information can be read at www.MarlinLLC.com.
Marlin & Associates Securities LLC, a wholly-owned subsidiary of Marlin & Associates Holding LLC, is a broker-dealer registered with the Securities and Exchange Commission and is a FINRA/SIPC member firm (www.finra.org). Investment banking and/or securities are offered through Marlin & Associates Securities LLC. Marlin & Associates' professionals have advised on more than 200 successfully completed transactions.