PointClickCare Technologies has reached an agreement to acquire Collective Medical. The deal is for nearly $650 million, according to Business Insider, which first reported the news on Tuesday.
Mississauga, Ontario-based PointClickCare is a cloud-based software vendor for more than 21,000 skilled nursing facilities, senior living communities and home health agencies. As a company, PointClickCare’s solutions help providers optimize financial performance, retain staff and gain insights needed to manage risk.
Meanwhile, Collective Medical is a Cottonwood Heights, Utah-based company that delivers a nationwide network for care collaboration, operating in 39 states. The company’s platform connects over 1,300 hospitals, ambulatory practices, long-term organizations, post-acute care providers and accountable care organizations (ACOs).
The deal has roots in a partnership between PointClickCare and Collective Medical that first began in 2019.
The original partnership resulted in the combination of Collective Medical’s care coordination tech and PointClickCare’s platform.
“Given the strong demand for the initial partnership and the expanded need for integrated care coordination solutions offered by both companies, we are excited to be able to bring these solutions together to benefit care teams, post-acute providers, hospitals and health plans across North America,” Mike Wessinger, founder and CEO of PointClickCare, told Home Health Care News in an email.
Once combined, the companies aim to improve care for seniors by connecting “disparate points of care.”
“The health care ecosystem is a mix of disconnected providers, systems, processes and data. Health care costs and risks are on the rise, patient care is inconsistent, and provider collaboration is ineffective,” Wessinger said. “Systems need to break down the data silos across community-based health care to create a connected care network, powered by insights with a commitment to value, outcomes and innovation, all in the name of patient centricity.”
Through the acquisition of Collective Medical, PointClickCare will become the largest combined acute and post-acute care network in North America, according to the company.
“We’ll be able to connect care teams, post-acute providers, hospitals and health plans with better real-time, deep insights about their patients, ultimately reducing administrative burdens and the high costs of complex care,” Wessinger said. “Our combined market share will allow us to provide these connections at scale.”
As an organization, Collective Medical’s platform and reach will bolster PointClickCare’s efforts to solve the gaps within complex care management and improve outcomes, according to Wessinger.
The purchase also addresses the need to build strong relationships with referral and payer partners.
“Together we are best positioned to support our customers to work with their partners across the care continuum,” Wessinger said.
Moving forward, Wessinger believes efficiency when it comes to care coordination and transitions will be more important than ever.
“As we face the second wave of COVID-19 infections, the health care industry as a whole is facing more pressure than ever to deliver repeatable, high-quality care in the most efficient way possible,” he said. “In order to address these multifaceted challenges, and combat nurse burnout, there needs to be a standard by which care is delivered and decisions are made.”
The acquisition is slated to be completed by the end of December 2020.