HealthStream is buying HealthLine Systems, headed by Dan Littrell, and will combine the company with existing subsidiary SyMed.
- HealthStream is paying $88 million in cash
- Deal expands HealthStream into credentialing, privileging niche
- Brentwood-based investment bank advised on the deal
Nashville-based HealthStream is paying $88 million in cash to Littrell Holdings for HealthLine Systems. Littrell Holdings is affiliated with a family trust of HealthLine CEO Dan Littrell and is the owner of HealthLine.
The acquisition will complement the provider enrollment suite that SyMed offers. SyMed tracks which doctors and healthcare providers work at hospitals or health systems and streamlines the payment process.
HealthLine tracks provider credentials and privileges — meaning it catalogs doctor accreditation such as specialties and the facilities where they are licensed to practice. HealthStream does not currently offer this to customers, said Mollie Condra, vice president of investor relations and communications at HealthStream. The U.S. Centers for Medicare and Medicaid Service requires that hospital systems monitor credentials and privileges as a prerequisite for federal reimbursement.
CMS requires credentialing and privileging for Medicaid and Medicare reimbursement. Hospital and health systems' Medical Affairs Office generally oversees the credentialing, privileging, and re-credentialing processes. The acquisition of HealthLine brings products to HealthStream that support every step of these processes.
HealthStream, a workforce, training and talent management services provider, is going to be combining HealthLine with SyMed into a new subsidiary with a new name. Michael Sousa, senior vice president of business development at HealthStream will be president of the new credentialing, privileging, and provider enrollment business subsidiary. Details on the new subsidiary, such as the new name, have not been finalized said Condra.HealthStream will keep HealthLine's San Diego office.
The deal is HealthStream's largest acquisition to-date; it's slated to close this quarter.
HealthStream's last purchase was of Health Care Compliance Strategies in March 2014 for about $13 million. The deal is slated to close in the first quarter.
Brentwood-based boutique investment bank Bailey Southwell & Co. advised HealthStream.
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Source : http://www.tennessean.com/story/money/2015/02/13/healthstream-buys-healthline/23353519/