Premier, Inc. subsidiary Contigo Health, LLC, a provider of comprehensive services that optimize employee health benefits closed its transaction to acquire key assets from TRPN Direct Pay, Inc. and Devon Health, Inc. Acquired assets will include contracts with more than 900,000 providers across 4.1 million U.S. locations, as well as licenses to TRPN’s proprietary cost containment technology.
Contigo Health, which collaborates directly with self-funded employer health plans and health systems to improve employee access to high-quality healthcare, plans to leverage the acquired assets to develop the provider contracts into a new out-of-network wrap product named Contigo Health® ConfigureNet™. This new product is expected to complement and help grow Contigo Health’s health plan administration products, improving access to quality healthcare and reducing the cost of medical claims through pre-negotiated discounts with its network providers. Claims will be aligned to the network provider’s contracted rate through an electronic data interchange to help ensure a rapid and seamless process for health plans and providers alike.
Premier currently anticipates the transaction to generate adjusted earnings per share accretion of $0.01 to $0.02 in fiscal 2023. In addition, the company expects the transaction to result in $40 million to $60 million in incremental annual net revenue and contribute 40 percent to 50 percent in adjusted EBITDA margin once fully scaled in the next three to five years.
“We are pleased to complete this transaction and look forward to the launch of Contigo Health® ConfigureNet™ later this fall. With the acquisition of these assets, Contigo Health is well positioned to expand into self-funded employer health plans across the country, offering a differentiated solution that better manages costs and offers more choices to employees.”
Michael J. Alkire, President and CEO of Premier
About Premier, Inc.
Premier, Inc. is a leading healthcare improvement company, uniting an alliance of more than 4,400 U.S. hospitals and health systems and approximately 250,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare.
About Contigo Health, LLC
Contigo Health, LLC, a subsidiary of Premier, Inc., creates new ways for clinicians, health systems and employers to work together to optimize employee health benefits. With over 3.9 million eligible members, Contigo Health® products include Sync Health Plan Administration TPA, Sync Health Plan BPO, and ECEN Passport (COE). These quality programs support a common goal for all stakeholders to increase access to high-quality care, enhance employee engagement, control costs and get employees back to work and life faster.