Aetna to Pay $500M for Medicity
Aetna said Tuesday it will buy healthcare information exchange technology company Medicity for $500 million.
Headquartered in Salt Lake City, UT, Medicity specializes in securing health information systems and identifying quality and efficiency issues in care delivery. Aetna said it will finance the deal with "available resources," and that the deal will be neutral to Hartford, CT-based health insurer's financial results in 2011.
Medicity will operate as a separate business within Aetna, under its existing leadership.
"This acquisition will enable Aetna to offer a set of convenient, easy-to-access technology solutions for physicians, hospitals and other healthcare providers. That, in turn, can help improve the quality and efficiency of patient care," said Mark T. Bertolini, Aetna CEO/president. "Strategically, we believe this acquisition will enhance Aetna's capabilities and accelerate our growth in the health information technology and health information exchange space."
Medicity said its HIT products and services are used by more than 760 hospitals, 125,000 physicians and 250,000 end users.
"We are excited about joining Aetna, with the shared vision for improving the healthcare experience for all stakeholders," said James K. Lassetter, MD, Medicity chairman/CEO. "The combination of Medicity's connected healthcare platform for providers with the clinical decision support capabilities of Aetna's ActiveHealth Management subsidiary can help physicians make better decisions in real-time as they collaborate and coordinate care."