SEATTLE, WA--(Marketwired - Nov 3, 2015) - SCI Solutions, a leader in referral management and patient scheduling, today announced that it has acquired Clarity Health, a software-as-a-service solution provider that delivers insurance authorization and referral management services to health systems and independent providers. This combination creates one of the largest referral management and care coordination software firms in the industry, serving more than 10,000 physician practices and 700 hospitals, health systems and imaging centers in 275 geographic markets across the United States.
Seattle-based Clarity Health offers a unique referral and insurance authorization service that enables healthcare providers to improve patient referral success rates, avoid payment denials and reduce administrative costs. Clarity's solution combines a proprietary analytics platform enabling adherence to health plan payment and utilization guidelines with a world-class service organization to deliver quick, accurate insurance authorizations. Clarity's services are used by more than 100 health systems, Accountable Care Organizations, imaging centers and physician practices nationwide.
Market research firm Frost & Sullivan projects that the care coordination software market will grow at a compound annual rate of 26 percent between 2015 and 2020. Within this market, care coordination tools deployed by physician practices are expected to be the fastest growing segment, with a CAGR of 43 percent, while the hospital market is pegged for 33 percent growth.
"As health systems and accountable care networks build strategies for creating advantage in value-based care environments, they require better ways to intelligently manage utilization at the point of referral," said Joel French, CEO of SCI Solutions. "Together, Clarity and SCI have delivered a first-of-its-kind solution our clients will use to smartly steer clinically-appropriate utilization across their networks, improve convenience for patients and referring providers and reduce excessive costs associated with navigating complex insurance prior-authorization requirements."
In parallel with the acquisition, SCI completed a financing to support its growth strategy. Columbia Pacific Advisors and ORIX Ventures participated in the transaction as did current SCI investors The Wicks Group and New Enterprise Associates.
"This combination enables our joint clients to access a complete service -- from initial patient referral, to easy appointment confirmation, to compliant reimbursement across all Medicare, Medicaid and commercial payers," said Bill Bunker, CEO of Clarity. "This integrated capability will enable our clients to improve financial performance and patient experiences in parallel."
The acquisition builds on a distribution and technology integration agreement the companies executed in 2014, resulting in substantial sales to joint clients, commercially delivered products and SCI client organizations already using the combined solution in their environments.
Financial terms of the agreement were not disclosed.
The combined company will be headquartered in Seattle.
About SCI Solutions
SCI Solutions improves the health of the healthcare system by enabling provider networks to gain economic value through better community-based care coordination. SCI operates a cloud-based service for a network of hospitals and independent providers including diagnostic imaging centers, physician groups and post-acute organizations. SCI connects health systems beyond their traditional boundaries to their community partners in ways big IT systems can't. Provider networks utilize SCI's service to coordinate patient care transitions, schedule patients, automate referrals and manage orders. An integrated and easy-to-use business analytics toolset identifies opportunities and monitors performance. As a result, healthcare organizations experience increased outpatient revenue, better coordinated care and greater physician satisfaction. For more information, visit scisolutions.com.
About Clarity Health
Clarity Health is a leading insurance preauthorization and referral management solution for medical practices, hospitals and health systems. Uniquely combining cutting-edge technology with world-class servicing, Clarity rapidly delivers accurate pre-authorizations electronically. Clarity also partners with third-party healthcare technology vendors as an embedded solution. Founded in 2007 in Seattle, WA, Clarity customers span nationwide. For more information, visit http://www.clarityhealth.com.
About The Wicks Group
The Wicks Group is a private equity firm based in New York City that invests in lower-middle-market companies operating in selected segments of the information, education and media industries principally in the United States and Canada. Since its founding in 1989, Wicks has invested over $1 billion of capital in 31 platform companies and approximately 100 add-on acquisitions. The firm has applied a consistent investment strategy since its founding, partnering with high-quality, experienced management teams to build businesses organically and through acquisitions. For more information visit www.wicksgroup.com.
About NEA
New Enterprise Associates (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With nearly $17 billion in cumulative committed capital since the firm's founding in 1977, NEA invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 200 portfolio company IPOs and more than 320 acquisitions since its founding in 1977. In the U.S., NEA has offices in Menlo Park, CA; Boston, MA; New York, NY; Chicago, IL; and the Washington, D.C. metropolitan area. In addition, New Enterprise Associates (India) Pvt. Ltd. has offices in Bangalore and Mumbai, India and New Enterprise Associates (Beijing), Ltd. has offices in Beijing and Shanghai, China. For additional information visit www.nea.com.
About Columbia Pacific Advisors
Columbia Pacific Advisors, LLC manages more than $1 billion across a variety of alternative investment strategies including private equity, public equity, real estate, distressed debt and special situation lending. Columbia Pacific Advisors, LLC is headquartered in Seattle, WA. For more information visit http://columbiapacific.com/
About ORIX Ventures
ORIX Ventures specializes in designing highly customized financing solutions for high growth companies with investments starting around $5 million and growing to $50 million. The team has committed over $1 billion to more than 100 companies. ORIX Ventures is a business unit of ORIX USA, a Dallas-based financial services firm known for providing innovative capital solutions that clients need to propel their business to the next level. With more than 500 employees spanning 20 offices across the U.S. and Brazil, ORIX USA and its family of companies hold $6 billion of assets and manage an additional $29 billion, approximately. Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned international financial services company with operations in 36 countries and regions worldwide. ORIX Corporation is listed on the Tokyo (8591) and New York Stock Exchanges (IX). For more information on ORIX Ventures, visit orixventures.com
Contact Information:
Contact:
Collin Roberts for SCI Solutions
(206) 664-7839