• Centene signed a definitive agreement to acquire the health analysis company Apixio at an undisclosed price, the payer said Monday.
• Apixio uses artificial intelligence to analyze and analyze patient data from sources such as medical notes and medical records to support the administrative functions of payers and providers. With this acquisition, Centene aims to digitize its backend operations and use patient data to improve care, CEO Michael Neidorff said in a statement.
• The business is expected to close later this year, based on legal support.
Healthcare companies are increasingly turning to technology, including artificial intelligence and machine learning, to streamline administrative functions in an effort to reduce waste and save money. San Francisco’s acquisition of Apixio is intended to complement Centene’s existing analytics products, according to Neidorff, while expanding support for value-based payments in the healthcare industry.
Apixio will continue to be an operationally independent company in the Centene healthcare industry and will continue to serve existing customers and sell them to the industry as a whole. The payer currently has five companies in this area on its website, including Interpreta for clinical and genomic data analysis.
Apixio was founded in 2009 and has raised more than $ 50 million in eight rounds of funding. In September, the private company announced that it expected this year’s sales to increase by 50% from 2019, as payers running government-sponsored health plans need more and more money. ” Analysis of data.
Centene, the largest Medicaid managed care organization and the largest plan provider in the US ACA market, reported third-quarter earnings of $ 568 million. This is almost six times the net profit for the third quarter of 2019. Subscriptions and revenue also increased, as lower use of medical services was partially offset by higher testing and treatment costs for COVID-19.
While taxpayers, in general, have benefited well this year, they have been exposed to unprecedented volatility in the face of the pandemic, a controversial political environment, and a Republican state demand to repeal the Affordable Care Act.