• Centene has finalized the acquisition of the analysis company Apixio as part of its ongoing offer to digitize its back-end functions, the payer announced on Tuesday.
• San Francisco-based Apixio extracts patient data from sources such as medical notes and electronic health records and uses artificial intelligence to analyze it to fuel the administrative functions of healthcare organizations.
• Financial terms of the purchase, which ended about a month after it was first announced on November 9, were not disclosed.
Like his colleagues, Centene increasingly strives to integrate technology into its operations and back-office functions in order to reduce waste and save money. The Apixio transaction is part of that strategy, which, according to a statement released Tuesday, aims to complement Centene’s existing data analytics offerings while strengthening support for value-based payments.
Apixio, 11, will remain an operationally independent entity within the Centene Healthcare Companies group and will continue to work with existing customers and sell to a broader industry that now enjoys the weight advantage of Centene. . The Payer Healthcare Companies segment currently hosts five companies, including Interpreta, a genomic and clinical data analytics company, and Casenet, a medical and healthcare population management platform.
Prior to its acquisition, Apixio raised more than $ 50 million in eight funding rounds. The privately-held company announced in September that it was forecasting 50% sales growth in 2019 from 2019, as demand for analysis increased from large payers running government-sponsored plans. This is a key market for Centene, the largest organization. Medicaid has managed care providers and the market’s largest provider plan for the Affordable Care Act.
The Medicaid and ACA plans have seen an increase in consumer demand this year as the COVID-19 recession has left millions of people without employer-sponsored health insurance. Coupled with lower healthcare use, these trends have benefited players like Centene, who have reported spikes in membership and revenue and have said they want to reinvest in the business.
Centene posted a third-quarter profit of $ 568 million, nearly six times the net profit for the same period last year.