MultiPlan Corporation (“MultiPlan” or the “Company”) (NYSE: MPLN), a leading value-added provider of data analytics and technology-enabled end-to-end cost management solutions to the U.S. healthcare industry, today announced that it has acquired HST, an innovative healthcare technology company that enables value-based health benefit plan designs, for a purchase price of $140 million. The transaction was completed on November 9, 2020.
HST’s platform uses sophisticated data analytics and tools to engage members and providers on both the front and back end of healthcare, enhancing collaboration and improving management of medical cost for all parties to a healthcare claim. HST’s technology helps payors offer more transparent, accountable, affordable and sustainable health plans that lower medical costs, improve acceptance and predictability over other Reference-Based Pricing (RBP) approaches, and increase plan member satisfaction by helping them make the best use of their benefits. Adding HST’s technology-enabled services to MultiPlan’s offerings will further extend the company’s capabilities and enhance its mission to improve affordability and fairness in the healthcare system.
The HST acquisition is a natural evolution of MultiPlan’s Enhance-Extend-Expand strategy, increasing the value that MultiPlan offers to healthcare payors by adding complementary services to help them better manage the cost of care and improve their competitiveness. The acquisition also enables MultiPlan to leverage its strong payor relationships, size and scale to more effectively deliver HST’s services to a larger customer base, and incorporate HST tools into MultiPlan’s Data iSight service to enhance its value for existing and new customers.
“MultiPlan has long recognized the importance of a more consumer-centric healthcare system that provides transparency and better assists members and providers,” said Mark Tabak, MultiPlan Chairman and CEO. “Our approach has focused on the back end of the process, but HST will help us capitalize on the growing shift to the front end. With the acquisition of HST, MultiPlan will have comprehensive front-end engagement tools for RBP and will be better positioned to deliver more value for healthcare payors, their consumers and providers.”
“With over 700 employer groups and 550,000 covered lives using its programs, HST has proven the critical role that it plays in serving the community through its platform technology and sustainable benefit plans,” said Edward Day, CEO of HST. “Under the leadership of Mark Tabak and the dedicated team at MultiPlan, we will continue to serve the healthcare industry with superior products and services, and expand HST into the regional plan and larger payor markets. I’m confident that our innovative technology platform will help all stakeholders better navigate changes in the healthcare industry.”
Truist Securities acted as exclusive financial advisor to HST, and Katsky Korins and Foley & Lardner served as legal advisors to HST. Kirkland and Ellis served as legal counsel to MultiPlan.
MultiPlan is committed to helping healthcare payors manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics and a team rich with industry experience, MultiPlan interprets clients’ needs and customizes innovative solutions that combine its payment integrity, network-based and analytics-based services. MultiPlan is a trusted partner to over 700 healthcare payors in the commercial health, dental, government and property and casualty markets. For more information, visit multiplan.com.
Forward Looking Statements
This press release contains forward-looking statements. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “forecasts,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including the impact of the acquisition of HST. Factors that may impact such forward-looking statements also include the factors discussed under “Risk Factors” in the Company’s Registration Statement filed October 30, 2020, as such risk factors may be updated from time to time in the Company’s periodic and other filings with the SEC. The Company’s periodic and other filings are accessible on the SEC’s website at www.sec.gov. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.