HealthStream, a healthcare technology platform company, has announced its acquisition of Virsys12, a healthcare technology company specializing in provider data management for payers and health plans. This strategic move aims to expand HealthStream’s existing Network by HealthStream™ solution, which supports credentialing and provider data management for enterprise payers.
Virsys12 offers the V12 Enterprise® application suite, designed to assist payers and providers in onboarding, credentialing, and network management. Currently, the suite is utilized by payers and providers in nine states across the U.
S. At the core of Virsys12’s offering is an intelligent provider data engine that automates the ingestion, cleansing, and monitoring of provider data, establishing a single source of truth for provider records.
The acquisition addresses a critical need within the U.
S. healthcare industry, where approximately 1,200 health and medical insurance companies (referred to as “payers”) require sophisticated software to streamline and secure the complex processes of verifying provider qualifications, enrolling them into insurance networks, and managing those networks effectively.
Tammy Hawes, Chief Executive Officer of Virsys12, stated, “As the founder of Virsys12, I am excited about joining HealthStream to achieve the next level of growth for V12 Enterprise® and support for payers and providers. HealthStream is unmatched in their reach, the power of their hStream Platform, and their culture and legacy of innovation.”
The V12 Enterprise® solution is recognized by industry analysis firms Gartner and IDC Market Glance for Payers. Its security is validated by a HITRUST, two-year (r2) certification, mirroring the high-level security achieved by HealthStream’s CredentialStream®, Credentialing Hub™, and Network by HealthStream™ applications.
Integration plans involve leveraging Virsys12’s scalable, API-first architecture for smoother incorporation into HealthStream’s hStream Platform. The primary focus of this integration will be provider data management, combining Virsys12’s provider data engine with HealthStream’s existing single verified provider record to build a robust infrastructure for credentialing, privileging, enrollment, and network management. HealthStream will also integrate Virsys12’s implementation and managed services into its Professional Services offerings.
Robert A. Frist, Jr., Chief Executive Officer of HealthStream, commented, “I would like to extend a warm welcome to Virsys12’s customers and employees that will be joining HealthStream. Virsys12’s V12 Enterprise application makes a terrific addition to our credentialing application suite as we further build our capabilities to serve payers throughout the healthcare industry. Virsys12 and HealthStream share a vision to reduce the administrative burden on payers and providers by delivering a single verified provider record and intelligently automating key processes around that record.”
HealthStream (Nasdaq: HSTM) acquired the outstanding equity of Virsys12 for up to $17 million in cash, contingent on earnout achievement and subject to a post-closing working capital adjustment.
