UPMC Partners with Vivify Health for Mobile Population Health and Chronic Care Management

UPMC is partnering with Vivify Health as a customer of and investor in its mobile population health solutions to remotely care for patients.

Vivify Health's technology is used by the nation's largest health organizations, representing more than 500 hospitals and payers, to efficiently manage, monitor and engage patient populations of all sizes and risk levels. Founded in 2009, Vivify was the first company to offer a Cloud-based solution for mobile population health and chronic care management using any consumer mobile device.

"After an extensive evaluation of a number of companies, Vivify Health clearly stood out to us as the one best aligned to deliver patient-centered remote care across UPMC's integrated payer/provider system," said Tal Heppenstall, President of UPMC Enterprises, the commercialization arm of UPMC which led the Vivify investment.  "As we deliver care under an increasingly risk-based reimbursement model, we are excited to become a customer, development partner and investor in Vivify's scalable population health management technology. Backing this kind of innovation to solve critical healthcare problems is at the heart of our mission at UPMC Enterprises."

Uniquely positioned for true population health management

Vivify Health solutions enable insurance and provider organizations to conduct virtual care visits, communicate seamlessly with patients and members, and remotely monitor any patient population, such as those with chronic illnesses. The solutions are tailored to patients of all levels of technology expertise, from an "instant-on" health kit for consumers with limited or no technology experience, to a bring-your-own-device (BYOD) solution for those who prefer to use their own devices, such as smartphones and tablets.

"Vivify's remote monitoring and communication technology is essential to making patients true partners in their care and providing the right services when and where they need them, increasingly at home," said Andrew Watson, MD, UPMC's Medical Director of Telemedicine and Vice President of UPMC International. "As an integrated healthcare delivery and financing system, we are focused on keeping patients well and out of the hospital, and that can happen only with affordable, easy-to-use technology like Vivify's."

Such flexibility to conform to the consumer's unique needs and comfort level has contributed to outcomes that Vivify reports with other customers, such as reducing readmissions by 65 percent, improving return on investment by 144 percent and achieving patient compliance and satisfaction rates well over 95 percent.

UPMC joins growing roster of customer investors

Vivify Health's other investors include several of the nation's largest health systems and health plans, including over 700 hospitals represented by Heritage Group and Ascension Ventures, followed by LabCorp and Envision Health.

As day-to-day users, customer-investors like UPMC take an active role in the continued development of the Vivify Health platform and the company's strategic direction. To that end, Brenton Burns, Executive Vice President of UPMC Enterprises, will join the Vivify Health board of directors. Enterprises' experienced product development team in Pittsburgh will also work with Vivify to enhance its solutions and to deploy them effectively across UPMC's vast system which covers virtually every aspect of care, including not only hospitals and physician offices but rehabilitation and senior living facilities.

"We are honored to partner with UPMC, one of the nation's most prestigious health systems, to advance its mission to provide outstanding patient care and shape tomorrow's healthcare with innovative population health technology," said Eric Rock, Vivify Health CEO. "We look forward to helping UPMC achieve unprecedented outcomes for its patients as part of its commitment to patient-centered, affordable care."

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Cognizant to Acquire TriZetto - Creating A Fully-Integrated Healthcare Technology And Operations Leader

Cognizant (NASDAQ: CTSH), a global leader in information technology, consulting and business process services, today announced that it has entered into a definitive agreement to acquire TriZetto Corporation for $2.7 billion in cash, subject to customary adjustments. Based in Englewood, CO, privately-held TriZetto is a leading provider of healthcare IT software and solutions.

"Healthcare is undergoing structural shifts due to reform, cost pressure and shifting responsibilities between payers and providers. This creates a significant growth opportunity, which TriZetto will help us capture," said Francisco D'Souza, CEO of Cognizant. "We are excited that the integrated portfolio of capabilities across technology and operations will uniquely position us to help clients drive higher levels of operational efficiency, while re-imagining care for the future. We look forward to welcoming the TriZetto team into the Cognizant family and creating a truly differentiated and sustainable foundation for healthcare."

Cognizant expects this acquisition to accelerate significantly its market position and strategy of delivering innovative healthcare software and solutions to a wide range of healthcare clients. TriZetto and its 3,700 employees will be a part of Cognizant's existing healthcare business, which currently serves more than 200 clients, including 16 of the top 20 U.S. health plans and four of the top five pharmacy benefit management companies. Healthcare currently represents approximately 26 percent of Cognizant's revenue.

"TriZetto solutions enable the healthcare interactions of millions of people in the U.S. every day," said Jude Dieterman, President and COO of TriZetto. "Our agreement with Cognizant advances our vision of simplifying healthcare for everyone. We believe the combination of Cognizant and TriZetto's talented employees and innovative technology and operations will have a meaningful impact on the way health is managed and care is delivered."

"Cognizant and TriZetto have had a long-term relationship, having jointly served a number of healthcare clients to date," said Gordon Coburn, President of Cognizant. "This acquisition is a natural fit for us. It represents a great opportunity to integrate services across our three horizons—traditional IT services; high-growth businesses such as management consulting, business process services and IT infrastructure services; and emerging delivery models—and provide even greater value to our clients."

"The transaction is expected to be immediately accretive to Cognizant's non-GAAP EPS, excluding one-time transaction costs and adjustments," said Karen McLoughlin, CFO of Cognizant. "That earnings benefit is expected to increase over time as we realize significant revenue synergy potential from the combination of these businesses."

Cognizant intends to finance the transaction through a combination of cash on hand and debt, and has secured $1 billion of committed financing in support of the transaction. The transaction is expected to close in the fourth quarter of 2014. The purchase agreement provides for customary closing conditions and purchase price adjustments including, without limitation, adjustments for items such as cash, indebtedness and working capital.

Cognizant was advised by Credit Suisse, UBS Securities LLC and Centerview Partners. Legal counsel to Cognizant was provided by Latham & Watkins LLP and Nishith Desai Associates. TriZetto was advised by JP Morgan Securities LLC and Goldman, Sachs & Co. Legal counsel to TriZetto was provided by Kirkland & Ellis LLP.

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