Ingenix announced this morning that it will acquire Picis, the Wakefield, MA-based vendor of high-acuity systems for surgery, anesthesia, intensive care, and the emergency department. Terms were not disclosed.
The announcement describes the strategy behind the acquisition:
Ingenix is best known as a leader in health intelligence and analytics throughout the health care system. The combination with Picis significantly strengthens Ingenix’s position in the delivery system, where Ingenix serves nearly 6,000 hospitals in the U.S. with consulting, technology and outsourcing solutions. Picis will extend Ingenix’s capabilities into the high-acuity information systems market.
Ingenix CEO Andy Slavitt was quoted as follows:
This marriage of ‘health intelligence’ and clinical workflow will provide substantial value to patients, physicians and hospitals. Tremendous opportunities exist to use information and technology to modernize the high-acuity area, delivering better care and greater efficiency to these high-volume areas of the hospital, where resource consumption is often at its greatest. Working with Picis’ world-class senior leadership team and talented employees, we believe we can make meaningful change in this critical segment of health care.
I spoke Wednesday morning with Todd Cozzens, Picis CEO and vice-chairman, who explained the rationale behind the acquisition.
”I’m happy with it – this is a great home for Picis,” he said of Ingenix. “These guys are at the epicenter of what’s happening with healthcare. They know all aspects of reform – data mining and data analytics. Winning the game in reform is about having the best health intelligence. Ingenix has bought into the strategy of hospitals becoming high-acuity centers that need data to drive decisions and to understand the supply chain.”
Cozzens will serve as chief executive of the Ingenix high-acuity business. Most of the Picis management team will transition as well. Operations will remain in Wakefield.
Cozzens says the acquisition was driven by capital requirements. “The minimum market cap to be a serious publicly traded company is now at $1 billion,” he says. “It would have taken 3-4 years for us to get there.”