Combines the best the industry has to offer – and all singularly dedicated to the success of acute hospitals, academic medical centers, non-acute community health care providers and pediatric facilities
IRVING, Texas--(BUSINESS WIRE)--VHA-UHC Alliance NewCo, Inc. (“VHA-UHC Alliance”) today announces that it has signed an agreement under which it will acquire MedAssets’ (NASDAQ: MDAS) Spend and Clinical Resource Management (SCM) segment, including Sg2, from Pamplona Capital Management (“Pamplona”), upon Pamplona’s close of the MedAssets acquisition, thereby becoming a global leader in health care supply chain procurement, market intelligence, strategic analytics and comprehensive consulting services. The combined expertise of VHA-UHC Alliance and MedAssets SCM will help providers significantly improve their financial, clinical and operational performance.
“By uniting VHA-UHC Alliance’s expertise with the MedAssets SCM segment’s proven strengths, this acquisition advances our mission to connect providers with the knowledge, solutions and expertise that accelerate performance," said Curt Nonomaque, VHA-UHC Alliance’s president and chief executive officer. “Leaders of participating hospital and health systems across the nation will have more ways to build innovative connections that empower better business performance and improve health care.”
The planned acquisition will support and fuel the fundamental strategies that set VHA-UHC Alliance apart:
- Reinforcing our commitment to supply chain as a strategic asset for health care providers, with expanded choices ranging from committed models to flexible, custom models;
- Offering the industry’s most comprehensive insights into cost and quality performance through the powerful combination of Sg2 and the VHA-UHC Alliance clinical and purchasing databases; and
- Expanding the company’s breadth of advisory services including physician strategies, clinical re-design, staffing and workforce solutions, non-labor strategies, and construction-related initiatives.
In addition, Pamplona and VHA-UHC Alliance have agreed to work together in select service offerings to serve their mutual members and customers, representing further strategic growth opportunities for both businesses.
“We are excited to see the benefit and enormous potential of the combination of VHA-UHC Alliance and MedAssets SCM businesses," said Jeremy Gelber, M.D., Partner at Pamplona Capital Management. “And of course, we believe Pamplona’s acquisition of MedAssets will create a national leader in the fully outsourced end-to-end revenue cycle services and technology market. This transaction will provide extraordinary benefit to our customers and the entire health care industry.”
The announcement builds on the decision earlier this year to bring VHA, UHC and Novation together to form VHA-UHC Alliance, the nation’s largest member-owned health care company, which delivers leading innovation, intelligence and networking to improve providers’ performance.
The new name for VHA-UHC Alliance will be announced in the coming weeks.
The transaction is anticipated to close by early next year, pending the completion of Pamplona’s acquisition of MedAssets and antitrust review.
Piper Jaffray & Co. is acting as VHA-UHC Alliance’s financial advisor, and Greenberg Traurig, LLP is acting as its legal advisor. VHA-UHC Alliance has received committed financing from Barclays for the transaction.
About VHA-UHC Alliance NewCo, Inc.
Effective April 1, 2015, VHA Inc., the national health care network of not-for-profit hospitals, and UHC, the alliance of the nation’s leading academic medical centers, combined into a single organization. The combined organization is the largest member-owned health care company in the country and is dedicated to leading health care innovation, creating knowledge and fostering collaboration to help our members thrive. The company serves more than 5,200 health system and hospital members and affiliates as well as 118,000 non-acute health care customers. Members range from independent, community-based health care organizations to large, integrated systems and academic medical centers, and it represents more than $50 billion in annual purchasing volume. Headquarters are in Irving, Texas, with locations in Chicago and other cities across the United States.