Outpatient software provider Net Health on Tuesday announced a plan to acquire Optima Healthcare Solutions, expanding its presence into the post-acute marketplace.
The Pittsburgh-based Net Health — which offers software platforms for about 3,000 urgent care, physical therapy, and other outpatient clinics across the country — positioned the move as a strategic push to extend its reach into Optima’s base of contract therapy companies, skilled nursing facilities, senior living communities, and hospices.
“Our combined products, expertise, talent, and resources will accelerate our ability to deliver the fully-connected data and predictive capabilities health care providers need to thrive in a value-based world,” Net Health chairman and CEO Anthony Sanzo said in a statement announcing the transaction.
The terms of the transaction, which the companies expect to close by the end of the month, were not disclosed.
Optima CEO Josh Pickus will initially join the combined company — which will continue under the Net Health name — as president and chief integration officer, assuming the CEO role once the merger process wraps; Sanzo will then hold the title of executive chairman.
“This transaction will allow us to expand our vision of enabling the cross-continuum care that patients deserve and our healthcare system demands,” Pickus said in the statement.
All told, the merged Net Health will see its software in 14,000 facilities across North America, with offices in six states. The company currently offers both electronic health record (EHR) and revenue cycle management products for its base of outpatient health practices and hospital systems.
Though the parties didn’t reveal how much Net Health paid for Optima, the transaction did receive equity funding from two of Net Health’s private-equity backers: Level Equity and The Carlyle Group. In turn, former Optima partner Alpine Investors will sell its shares in the company, according to the firms.
The post-merger Net Health will use the cash from Level Equity and Carlyle to develop new software internally and potentially conduct further acquisitions.