Hospital profitability, volumes struggled during 2018, with a few exceptions

Healthcare Finance | January 14, 2019

With 2018 now in the books, it's possible to see how certain trends played out in the world of healthcare. Kaufman Hall was certainly interested in examining the year that was, and in looking back, the firm found that while 2018 got off to a bad start, hospital volumes and profitability rebounded here and there -- though not nearly enough to make it a banner year. The summer months tended to be stronger on the profitability front, but Kaufman Hall's December Flash Report found it was the second month in a three-month period in which profitability declined. Operating EBITDA margin declined 54 basis points and operating margin declined 83 bps. This performance is being driven, in part, by declining volumes and utilization, increasing lengths of stay, and increasing expenses -- particularly for supplies and purchased services.

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HEALTH TECHNOLOGY

VBA Partners With Healthcare Bluebook to Provide Enhanced Reporting of Quality Data for Physicians and Hospitals

Healthcare Bluebook and VBA | September 09, 2022

VBA, a leading-edge healthcare technology company, has teamed up with Healthcare Bluebook to incorporate Quantros quality scores for over half a million physicians and hospitals into its VBAnalytics reporting solution. This move is just one of many exciting enhancements around quality-based care reporting planned in 2022 to make VBAnalytics the premier population health and business insight solution for healthcare payers. VBAnalytics already provides robust analysis and reporting of healthcare utilization and costs and offers insight to help payers make the necessary changes to ensure their health plans are performing effectively. “As the healthcare industry continues to strive for transparency in both cost and quality, the Quantros quality data is essential for our clients to remain competitive. Being able to benchmark their results against millions of healthcare claims from all regions of the country provides invaluable insight to manage their plan performance.” Michael Clayton, President and CEO of VBA With VBAnalytics Value-Based Care Reporting, powered by Quantros, health plans can easily combine cost and quality data to determine which providers are performing the best under their value-based care arrangements. Equipped with this information, payers can make adjustments to their provider networks to ensure that patients have access to the best providers. The Quantros quality scores include important measures of physician and hospital performance including patient safety, complications from a procedure or hospitalization, mortality, and hospital readmissions. Data is combined among multiple providers to create an episode of care, which allows for a more comprehensive view of the patient’s experience. VBA has also integrated Healthcare Bluebook’s online shopping tool within its VBAGateway member portal to make it simple for members to access cost and quality information they need with just a few clicks. “When consumers are equipped with accurate information on cost and quality, everybody wins,” said Clayton. “As consumers become more educated about their healthcare decisions, it will lead to more thoughtful choices that can have a positive ripple effect throughout the healthcare system.” Providing consumers with better information also helps to reduce the overall cost of healthcare for employers, who cover a significant portion of the healthcare costs for their employees. About VBA VBA is a leading-edge healthcare technology company providing comprehensive solutions to the insurance industry. Uniquely delivered on a secure, cloud-based platform, VBA provides a suite of technology solutions for benefits administration, user experience, customer support, business insight and more. About Healthcare Bluebook Healthcare Bluebook's purpose is to protect consumers and companies nationwide from overpriced, low-quality healthcare. Since 2007, Healthcare Bluebook has helped millions of people by making it easy for them to find high-quality care at a Fair Price™.

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FUTURE OF HEALTHCARE

Azenta Announces Agreement to Acquire B Medical Systems

Azenta, Inc. | August 09, 2022

Azenta, Inc. announced that it has entered into a definitive agreement to acquire B Medical Systems S.á r.l and its subsidiaries a market leader in temperature-controlled storage and transportation solutions that enables the delivery of life-saving treatments across the globe. The cash purchase price to be paid at closing will be approximately €410 million. Additional cash consideration, up to €50 million, may be paid upon achievement of certain future performance milestones. The transaction is expected to close in October 2022. B Medical is headquartered in Hosingen, Luxembourg and is one of the leading vaccine cold chain providers serving primarily fast-growing emerging markets, which require secure and reliable temperature-controlled storage and transport solutions. The portfolio includes vaccine transport systems with real-time monitoring solutions, medical refrigeration for ambient to -86°C temperatures, and blood management solutions. B Medical has an installed base of more than 500,000 units spanning approximately 150 countries across the globe. The Luxembourg headquarters includes a state-of-the-art, highly automated manufacturing facility. This acquisition complements Azenta's cold chain capabilities, adding differentiated solutions for reliable and traceable transport of temperature-sensitive specimens. "We are excited to add B Medical into our growing portfolio of offerings. B Medical has done an outstanding job carving out a strong market position in the vaccine cold chain, and we see a breadth of opportunities to drive even further value from the portfolio by leveraging the Azenta platform." Steve Schwartz, President and CEO of Azenta B Medical CEO, Luc Provost, who has been with the company for over 20 years, and Jesal Doshi, Deputy CEO since 2015, are expected to join Azenta and continue to lead the business. Mr. Provost commented, "We are excited to join the Azenta team as we combine our capabilities and expertise in cold chain solutions to drive the next leg of growth. Together, I look forward to continuing our mission to create technology that helps save lives across the world." B Medical generated approximately €109 million in revenue over the past twelve months ending June 30, 2022. Management expects the acquisition to be accretive to non-GAAP earnings in fiscal year 2023 and accretive to GAAP earnings in fiscal year 2024. About B Medical Systems B Medical is a global manufacturer and distributor of cold chain solutions. Based in Hosingen, Luxembourg, the company was founded in 1979, when the World Health Organization (WHO) approached Electrolux to provide a solution to safely store and transport vaccines around the world. The three major business portfolios include Vaccine Cold Chain, Medical Refrigeration, and Blood Management solutions. Notable products include vaccine transport systems (ice-lined and solar direct drive) with remote temperature monitoring devices, laboratory refrigerators, ultra-low freezers, contact-shock freezers, and transport solutions. B Medical Systems' products are used in approximately 150 countries and have an installed base of more than half a million products across the world. About Azenta Life Sciences Azenta, Inc. is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. As of December 1st, the company changed its name and ticker to Azenta, Inc.from Brooks Automation, Inc.

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HEALTH TECHNOLOGY

VitalConnect Announces Investment from HCA Healthcare to Accelerate Commercial Growth and Create Strategic Partnership

VitalConnect, Inc. | September 13, 2022

VitalConnect®, Inc., a leader in remote and in-hospital wearable biosensor technology, announced the completion of an investment funded by Health Insight Capital, the investment arm of HCA Healthcare Inc. one of the nation’s leading healthcare providers. The investment will go toward further accelerating VitalConnect’s rapidly growing cardiac monitoring business segment while advancing key Remote Patient Monitoring of individuals who have experienced heart failure (HF), chronic obstructive pulmonary disease (COPD) and sepsis, among others. This funding support is expected to help VitalConnect continue bringing the most advanced technology to patients and providers. “This strategic investment from HCA Healthcare will further accelerate VitalConnect’s expansive growth and upward trajectory in the Cardiac Monitoring space. We’ve experienced unparalleled physician adoption and growth over the past 18 months since launch, and HCA Healthcare’s investment will enable us to continue bringing customers the most comprehensive remote patient monitoring platform.” Peter Van Haur, CEO, VitalConnect Founded in 2011, VitalConnect has deployed hundreds of thousands of biosensors throughout the world, including care facilities such as Brigham and Women’s, Hackensack Medical Center, Northwell Health, and John Radcliffe Hospital-Oxford University. The VitalPatch allows real-time remote or in-hospital monitoring, allowing physicians to optimize the delivery of care to their patients. About VitalConnect, Inc. VitalConnect is a leader in wearable biosensor technology for wireless patient monitoring in both hospital and remote patient populations. VitalConnect leverages extensive expertise in biomedical engineering, data analytics, chip design, and mobile and cloud software to create technology that supports decision-making paradigms that achieve better health and economic outcomes. VitalConnect’s products are designed for use in a broad range of inpatient and outpatient settings, such as hospital monitoring, post-discharge care, cardiac monitoring and pharmaceutical solutions. VitalConnect’s advanced yet easy-to-use platform, was designed to deliver better healthcare at lower costs while providing more convenience for the patients and healthcare providers.

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HEALTH TECHNOLOGY

NextGen Healthcare Announces New Foster Care Functionality in Behavioral Health Suite

NextGen Healthcare, Inc. | September 15, 2022

NextGen Healthcare, Inc. a leading provider of innovative, cloud-based healthcare technology solutions, announced the newest release of its NextGen® Behavioral Health Suite. Built upon the company’s award-winning NextGen® Enterprise electronic health record and practice management system, the suite is the industry’s first platform to integrate comprehensive physical, dental, behavioral health and human services. The latest release offers tools that support the delivery of foster care services. These services benefit over 672,000 youth – most with complex health concerns – who are part of the U.S. foster care system, according to federal statistics. Additionally, NextGen Behavioral Health Suite now offers state-specific reporting, allowing behavioral health providers in states such as New York and Indiana to meet complex regulatory requirements. The release comes on the heels of recent upgrades that simplify caring for people with Intellectual & Developmental Disorders and includes residential content features. “The enhancements to our behavioral health suite were developed with our clients and the communities they serve in mind. The addition of foster care capabilities enables providers to expand care to some of the most vulnerable and precious members of our society – our children. And our new automated state-reporting capabilities enable providers to spend more time delivering care and less time on regulatory compliance.” Srinivas (Sri) Velamoor, chief growth & strategy officer for NextGen Healthcare New features in the latest release will aid providers as they work to build healthier communities Demographic Details of Foster Parents and Children – Enables foster care or adoption agencies to collect the demographic details of foster and adoptive families and children. Initial Screening of Foster or Adoptive Parents – Clinicians can document the initial screening of prospective foster or adoptive parents. Home Interview of Foster or Adoptive Parents – Users can collect in-depth interview details of prospective foster parents and determine the foster placement preferences of foster parents. Placement Dashboard of Foster Children – Providers can view availability of foster families to assign children to, and track/manage the location of each foster child within the foster care and adoption services programs. In addition to the human services enhancements, NextGen Healthcare works in unison with its client partners to create solutions tailored to their unique needs, including regulatory reporting requirements. “Through due diligence and thoughtful conversation, NextGen Healthcare weaved through the complexities of New York State legislation to create a tool that meets every requirement needed for documentation, regulatory and reporting. This is vital to the livelihood of our practices,” said Carl Coyle, chief executive officer of Liberty Resources, a NextGen Healthcare client based in Syracuse, NY. About NextGen Healthcare, Inc. NextGen Healthcare, Inc. is a leading provider of innovative healthcare technology solutions. We are reimagining ambulatory healthcare with award-winning solutions that enable high-performing practices to create healthier communities. We partner with medical, behavioral and dental providers in their journey toward whole person health and value-based care. Our highly integrated, intelligent and interoperable solutions go beyond EHR and Practice Management to increase clinical quality and productivity, enrich the patient experience and drive superior financial performance. We are on a quest to achieve better healthcare outcomes for all.

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According to the World Health Organization, breast cancer is the most commonly diagnosed cancer and is the leading cause of cancer deaths among women worldwide.

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