Change Healthcare (known as Emdeon before rebranding in 2015, which followed the purchase of a pre-existing company called Change Healthcare) is a provider of revenue and payment cycle management that connects payers, providers, and patients within the
U.S. healthcare system
The United States far outspends any other nation on health care, measured both in ''per capita'' spending and as a percentage of GDP. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. The Uni ...
. The name also refers to a company founded in 2007 which subsequently became part of the current conglomerate. The company operates the largest financial and administrative information exchange in the United States.
The company is headquartered in
Nashville, Tennessee
Nashville is the capital city of the U.S. state of Tennessee and the county seat, seat of Davidson County, Tennessee, Davidson County. With a population of 689,447 at the 2020 United States census, 2020 U.S. census, Nashville is the List of muni ...
, with more than 89 additional locations throughout the United States, Canada, New Zealand, Israel, Taiwan, the UK, and the Philippines.
History
Change Healthcare (2007)
A company called Change Healthcare was established in 2007 and based in
Brentwood, Tennessee
Brentwood is a city in Williamson County, Tennessee, United States. The population was 45,373 as of the 2020 United States census.cost transparency tools to health plans and large, self-insured employers across the United States. The company was founded by Christopher Parks and Robert Hendrick in 2007 with a consumer solution called MedBillManager. In January 2010, the company shifted its focus to the business-to-business market and launched the Change Healthcare Engagement Platform.
In April 2011, Howard McLure, former president of
CVS Caremark
CVS Caremark (formerly Caremark Rx) (stylized as , previously CVS/caremark) is the prescription benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.
Company history
Caremark was founded as a physician and ph ...
, came out of retirement to lead Change Healthcare as chairman and CEO. Doug Ghertner joined the company as president in July 2011; prior to this, he oversaw product innovation and management at CVS Caremark and was a senior vice president.
In December 2011, Change Healthcare closed a round of financing, led by Sandbox Industries,
BlueCross BlueShield
Blue Cross Blue Shield Association (BCBS, BCBSA) is a federation, or supraorganization, of, in 2022, 34 independent and locally operated BCBSA companies that provide health insurance in the United States to more than 106 million people. It was ...
Venture Partners and West Health Investment Fund. In September 2012, Ghertner was promoted to president and CEO, and McLure assumed the role of executive chairman.
In July 2013, Change Healthcare closed on a round of Series D funding. It was led by HLM Venture Partners, and including new investor Noro-Moseley Partners, infused $15 million into the company. In July 2013, Change Healthcare was also named one of
Modern Healthcare
''Modern Healthcare'' is a twice monthly business publication targeting executives in the healthcare industry. It is an independent American publisher of national and regional healthcare news.
The publication is also known for providing statistic ...
’s “100 Best Places to Work in Healthcare."
Emdeon
In 2004, WebMD Corporation acquired Dakota Imaging, Inc. and ViPS, Inc.
Until August 2005, Emdeon operated under the name WebMD Corporation (
NASDAQ
The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
: HLTH). The name was changed to Emdeon to avoid confusion with its then subsidiary
WebMD
WebMD is an American corporation known primarily as an online publisher of news and information pertaining to human health and well-being. The site includes information pertaining to drugs. It is one of the top healthcare websites.
It was foun ...
, which started public trading under stock symbol WBMD in September 2005.
In May 2009, the company acquired The Sentinel Group, a vendor of software and investigational services to combat health care fraud. In January 2010, the company acquired FutureVision Investment Group, L.L.C. (FVTech), a provider of outsourced services specializing in electronic data conversion and information management solutions. In March 2010, the company acquired Healthcare Technology Management Services, Inc. (HTMS), a management consulting company focused primarily on the healthcare payer market. In June 2010, the company acquired Chapin Revenue Cycle Management, LLC (Chapin), a technology-enabled provider of accounts receivable denial and recovery services. In August 2010, the company acquired Interactive Payer Network (IPN), a leading technology service provider that acts as an outsourcing partner for HIPAA-compliant healthcare electronic data interchange (EDI). In October 2010, the company acquired Chamberlin Edmonds & Associates, Inc. (CEA), a technology-enabled provider of government program eligibility and enrollment services. In May 2011, the company acquired EquiClaim, a provider of healthcare audit and recovery services for commercial and government payers, from MultiPlan, Inc.
In August 2011, Emdeon Inc. was taken private for $3 Billion by
Blackstone Group
Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate b ...
. Blackstone's offer of $19 per Emdeon share was backed by committed financing from
Bank of America Merrill Lynch
BofA Securities, Inc., previously Bank of America Merrill Lynch (BAML), is an American multinational investment banking division under the auspices of Bank of America. It is not to be confused with Merrill, the stock brokerage and trading plat ...
,
Barclays Capital
Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services.
Barclays traces ...
and
Citigroup
Citigroup Inc. or Citi (Style (visual arts), stylized as citi) is an American multinational investment banking, investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking ...
. Emdeon shares jumped 13.6% the morning after the acquisition. Shares had risen 31% over the previous year until the announcement.
In May 2012, the company acquired TC3 Health, a cost containment provider, including payment integrity and out-of-network claims cost management, to U.S. healthcare payers. In June 2013, the company acquired Goold Health Systems, a healthcare management organization that specializes in providing pharmacy benefit and related services primarily to State Medicaid agencies across the nation. In July 2014, the company acquired Capario, a provider of healthcare technology solutions using a cloud-based platform that enables healthcare providers to use a real-time solution called CaparioOneSM.
In November 2014, Change Healthcare was acquired by Emdeon for $135 million. In November 2015 Emdeon officially rebranded to take the Change Healthcare name.
In December 2014, the company acquired AdminiSource Communications, Inc., a payment and communications solutions (PCS) business of Alegeus Technologies, LLC, a provider of consumer directed healthcare services. In August 2015, the company acquired Altegra Health, a provider of technology and intervention platforms that combine data aggregation and analytics with member engagement and reporting capabilities.
In June 2016,
McKesson Corporation
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools. The company delivers a third of all pharmaceuticals used in North America and emplo ...
and Change Healthcare Holdings, Inc., announced the creation of a new healthcare company which combined substantially all of Change Healthcare's business with the majority of McKesson's
Information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
unit. McKesson owns approximately 70% of the new company, with the remaining equity stake held by Change Healthcare stockholders. The new company continues to be called Change Healthcare.
In October 2018, it was reported that Change Healthcare Corporation hired underwriters and investment banks for a 2018/2019 time-frame initial public offering. On June 27, 2019, Change Healthcare Inc, with stock symbol CHNG, started trading on the NASDAQ stock exchange and offered as many as 49.2 million shares of its stock, at a price of $13 per share raising more than $640 million in its IPO.
In December 2018, Change Healthcare acquired the intellectual property and other key assets, including employees, of Charleston-based health care IT startup PokitDok.
In January 2021,
UnitedHealth Group
UnitedHealth Group Incorporated is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. UnitedHealth Group is the world's seventh largest c ...
's OptumInsight unit agreed to acquire Change Healthcare in a deal valued at $13billion, including assuming $5billion of latter's debt. Following delays due to regulator scrutiny, the acquisition closed on October 3, 2022.
Market segments
* Physicians & Clinics
* Hospitals & Health Systems
* Payers
* Pharmacies
* Channel Partners
* Dentists
* Clinical Exchange
* Labs
* Government Services
As of October 2015, the company's health information network reached approximately 1,200 government and commercial payers, 700,000 providers, 5,000 hospitals, 105,000 dentists, 60,000 pharmacies, 600 vendor partners, and 150 labs.
In 2014, Emdeon processed over 8.1 billion transactions, and handles over $6.4 billion in transactions each year.
Key personnel
, the Management team included:
* Neil de Crescenzo IV, Chief Executive Officer
* Alex Choy, Chief Information Officer
* Fredrik J. Eliasson, Chief Financial Officer