Premier Inc., a health care improvement company, is acquiring Stanson Health for $51.5 million, according to a press release.
Premier is making the purchase with existing cash, and the deal is expected to close in the company’s second quarter at the end of 2018.
Stanson is a software-as-a-service provider of clinical decision support that provides real-time, patient-specific practices for care. The company is also currently developing a product that will be able to provide near real-time prior authorization decisions for medical and pharmacy benefits. This product is expected to save time and expenses for providers and payers.
Stanson, whose solutions are currently active in about 300 health care facilities, was ranked No. 1 by KLAS as the top provider of clinical process improvement solutions.
The company’s clinical decision support goes into use when the patient meets a specific profile and specific recommendations are offered that are relevant to the care provider’s decision. The technology can be integrated on major electronic health record platforms such as Epic, Cerner and Athenahealth.
Premier unites an alliance of approximately 4,000 U.S. hospitals and health systems and approximately 165,000 other providers and organizations.
“This strategically significant acquisition complements our core data and analytics offerings and enables us to expand the reach of our solutions directly to the point of care, where they can have the biggest impact,” said Susan DeVore, president and CEO of Premier, in a statement
The acquisition also has an additional earn-out opportunity of up to $15 million depending on certain product delivery and revenue targets. The purchase is not projected to impact earnings in fiscal year 2019, and is expected to be modestly accretive in future years.
Premier also reported financial results Tuesday for the fiscal 2019 first quarter that ended Sept. 30. As of July 1, 2018, Premier adopted new revenue recognition standard ASC 606, and the results below compare current results to 2018 first-quarter results under ASC 605.
Adjusted net revenue increased to $401.5 million, up from $390.6 million a year ago. The company reported a net loss of $681 million compared to a net income of $42.4 million, and diluted loss per share totaled $12.80, compared to net income of 30 cents per share a year ago.
The revenue was below analyst estimates of $411.67 million.
The company’s shares fell $4.19, or 9.3 percent, to $40.89 in midday Tuesday trading.
