A nascent healthcare startup introduced an acquisition on Thursday that it believes will advance its mission of accelerating the trade’s transformation to value-based care.

Guidehealth — a value-based care enablement startup that formally launched itself a couple of month in the past — acquired Arcadia’s value-based care service division. The businesses aren’t disclosing the phrases of the deal.

Two healthcare veterans based Guidehealth. One co-founder is Sanjay Doddamani, the previous CEO of value-based care startup Upstream, and the opposite is Michael Gleeson, Arcadia’s former chief technique and innovation officer. Doddamani serves because the Guidehealth’s CEO, whereas Gleeson serves as chief know-how officer.

They based the corporate as a result of they noticed an unbelievable want for know-how that helps well being programs achieve value-based care preparations whereas nonetheless sustaining monetary stability, Gleeson stated in an interview.

The startup, which has its headquarters in Dallas, is creating an answer that seeks to assist well being programs “enhance their working margin round value-based care, but in addition accomplish that in a approach that retains them on the similar quantity or increased for referrals,” he defined.

The entire thought behind value-based care is to maintain sufferers out of the hospital, however that’s a tough factor for well being programs, Gleeson identified. If a well being system is profitable on the value-based care entrance, they may find yourself dropping lots of hospital income that they want with the intention to hold their doorways open, he defined.

That’s why Guidehealth’s platform is designed to not solely enhance suppliers’ monetary efficiency in value-based danger contracts via predictive analytics, but in addition strengthen their relationships with affiliated networks and allow referral progress, Gleeson famous. This design might assist prospects differentiate Guidehealth from different value-based care enablement startups, similar to Aledade and Pearl Well being.

“With the [managed service organization] we’re buying, we are able to deal with referral administration, utilization administration, prior authorization and affected person entry — we are able to take a latent capability that exists inside the community and direct high-value, applicable quantity to hospital programs. This enables us to maintain the general quantity and the hospital the identical or increased,” he declared.

Some key parts in Guidehealth’s newly acquired asset embrace instruments for streamlining go to entry and referrals, prior authorization administration, community administration and paying claims to suppliers.

By buying a “tried and true, in-the-market resolution” for referral and utilization administration, Guidehealth is positioning itself effectively to assist well being programs keep affected person quantity whereas excelling in value-based care contracts, Gleeson stated.

The startup makes its cash by charging charges for its know-how, in addition to by bearing danger in value-based care preparations and amassing the financial savings which might be generated from these packages, he defined.

Guidehealth’s prospects embrace two Chicago-based suppliers, Endeavor Well being — which was generally known as NorthShore – Edward-Elmhurst Well being earlier than it rebranded this month — and Amita Well being Care Community. 

Picture: Natee Meepian, Getty Photographs