The day after this Editor posted on telehealth/virtual consult kiosk HealthSpot Station‘s new partnerships with Mayo Clinic and major drug retailer Rite Aid, Xerox announced their investment in the company. Xerox is not a business services organization one immediately associates with healthcare technology, but perhaps not anymore, based on this quote from Connie Harvey, Xerox’ chief operating officer of Commercial Healthcare: “HealthSpot is at the center of healthcare’s shift to a patient-centered model of care, and our investment in the company demonstrates Xerox’s commitment to transforming traditional healthcare into a high-value delivery system for patients, providers and payers.” Xerox will also be supplying BPO–business process outsourcing–services for cloud hosting, system integration, claims eligibility and claims submissions. But there’s more…. (more…)
The $2.7 billion acquisition of HIT payer-provider services company TriZetto by IT/BPO outsourcer Cognizant indicates the value that large, largely offshored companies are seeing in health data. According to Fortune, “The combined company has more than $3 billion in healthcare revenue, as well as about $1.5 billion of potential revenue synergies over the next five years from which Cognizant can cull further gains.” Cognizant’s healthcare and life sciences sector is about 26 percent of their $8.84 billion total annual revenue, but what they haven’t had is the provider-payer software and TriZetto’s IP.
So why the big number (which exits the investors quite nicely) which nearly equals the value of the combined companies in healthcare? The trend this Editor has spotted (more…)