Zelis, a leading healthcare payments and pricing company with New Jersey office in Bedminster, has entered into a definitive agreement to acquire Plano, Texas-based Payer Compass, one of the healthcare industry’s leading providers of reimbursement and claims pricing, administration, and processing solutions.
Payer Compass has developed innovative solutions to help price, explain, and mitigate healthcare costs, helping members better navigate the often-complex financial journey without sacrificing quality of care. The company has helped organizations control the cost of care by combining its multi-faceted pricing platform Visium™ with an emphasis on client success. Working with health plans and self-funded organizations, Payer Compass has provided data and insights to reprice more than $200 billion in claims, generate more than $1.5 billion in annual savings and serve more than 10 million lives.
Together, Zelis and Payer Compass will leverage advanced technology and best-of-breed approaches to create reference-based pricing solutions to manage rising healthcare claims cost for clients and their members.
“We’re committed to our mission of making care more affordable and transparent for all. Combining Payer Compass’ innovative platform with our existing network solutions and payment integrity offerings will do just that,“ said Amanda Eisel, CEO of Zelis. “Through our combined assets, we’ll have the people, technology, and shared energy to generate more savings for our clients and continue to positively impact healthcare’s rising costs and complexity.”
Jay Deady, president of claims cost solutions at Zelis, added, “Healthcare costs continue to increase without an end in sight. The burden on consumers to understand, navigate, and address these expenses is overwhelming. The combination of these outstanding companies will drive technical and service innovation to make a difference.”
Greg Everett, CEO of Payer Compass couldn’t agree more, stating, “We’ve been at the forefront of tackling rising costs and healthcare spend for more than two decades. We’re thrilled to join an organization who has shared this vision for just as long. With our assets combined, we stand well-positioned for an even greater impact in the next chapter.”
The transaction is expected to close in the third quarter. Specific terms of the transaction were not disclosed. Spectrum Equity, a leading growth equity firm, and Health Enterprise Partners, a healthcare-focused investment firm, have been investors in Payer Compass since 2019. Triple Tree, LLC. served as the exclusive financial advisor for this transaction. Payer Compass was represented by Latham & Watkins, LLP and Zelis was represented by Kirkland & Ellis.
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