San Antonio, Texas-based Carenet Health — a maker of healthcare engagement, clinical support, telehealth and care navigation products — has acquired software maker Citra Health Solutions’ engagement and telehealth subsidiary, according to an announcement from the companies.
While the deal's price tag was not disclosed, a representative of the companies told MobiHealthNews that Carenet is picking up approximately 140 team members and more than 100 clients, effective immediately. For these employees and customers, the stressed their expectation of a smooth transition.
“Most important for Citra is knowing that, in moving to Carenet Health, the employees and clients are moving to a solid healthcare-focused organization, with national reach,” Citra Health Solutions CEO Scott Sanner said in a statement. “Carenet is known for its leadership in the engagement and telehealth space, and our organization is dedicated to supporting the Carenet acquisition and integration.”
Carenet’s business revolves product partnerships with health plans, providers and other stakeholders. It supports more than 65 million healthcare consumers across all 50 states and, according to the company, will now become “one of the largest telehealth providers in the nation” with this deal.
WHAT’S THE IMPACT
In short, the transaction strengthens Carenet’s telehealth offering and brings in a handful of new clients.
“We live in an on-demand world. Whether you are a payer or a provider, increased demand for an improved healthcare experience equals an increased demand for viable virtual care options,” Mick Mazour, president of Carenet Health, said in a statement. “This acquisition puts us in an even better position to meet that need.”
Of note, the purchase comes roughly seven months after Carenet Health acquired HGS AxisPoint Health’s nurse advice line service, a move that also shares an end goal of bolstering the company’s telehealth and virtual care business.
THE LARGER TREND
Telehealth interest and adoption has continuously on the rise, with little shortage of M&As, new service launches, major partnerships and substantial funding rounds across the industry. But while the sector has been pegged to grow over the next few years, many are still investigating the modality’s comparative efficacy, appropriate regulation and physician uptake.
ON THE RECORD
“With ER and other care costs rising at unsustainable rates, we’re partnering with more and more industry players who realize that telehealth — including personal guidance at any time of the day or night and the subsequent direction to the most appropriate care options — needs to be a critical part of 2020 strategies,” Carenet Health CEO John Erwin said in a statement.