Exclusive: PointClickCare acquires Patient Pattern
Private equity-backed PointClickCare acquired value-based care EHR and care management platform Patient Pattern, the company tells Axios exclusively.
Why it matters: The deal helps the senior care giant further build its value-based care engine as health care shifts away from fee-for-service.
Details: Hellman & Friedman and JMI Equity-backed PointClickCare — valued at $5 billion as of 2022 — declined to disclose deal terms or updated valuation details.
- Patient Pattern offers care management solutions for Medicare Advantage Special Needs Plans, ACO REACH participants, and PACE programs.
- The company also helps practices manage fee-for-service patients in tandem with VBC frameworks, as well as facilitates VBC reimbursement for skilled nursing facilities.
What they're saying: "The shift to value-based care continues to accelerate each year, especially as providers are increasingly taking on more risk," says PointClickCare SVP and general manager of senior care Travis Palmquist.
- "Institutional Special Needs Plans (I-SNPs) specifically, demonstrate the enormous potential of aligned value-based care models," he adds.
- The deal lets PointClickCare "potentially take on more risk-bearing responsibilities, particularly with high-needs populations," Palmquist says.
By the numbers: The number of patients treated within the value-based care landscape could roughly double in the next five years, according to a recent McKinsey and Company study.
- Growth in valued-based care creates about approximately $500 billion in enterprise value today and may be on track to reach $1 trillion as the landscape matures, said the study.
State of play: Senior-focused value-based care is booming, with several players emerging to tackle various ends of the market.
- Lifespark, a senior care tech startup, was seeking $50 million in growth equity funding, Axios reported in September 2022.
- Upward Health, an in-home primary care provider, raised a $15.8 million Series B led by Heritage Group in September 2022.
- Remote home care company Biofourmis tipped its Series D round to $320 million in August 2022 with a $20 million extension from Intel Capital.
- Wellvana Health, a Martin Ventures-backed value-based care enabler, was exploring strategic alternatives, Axios reported in October 2022.
What's next: "Acquisitions have and continue to be a key mechanism for us to accelerate PointClickCare’s vision and growth," says Palmquist, though he noted there are currently no plans for another buy.
The bottom line: "We’re focused on positively impacting the care of high-need populations, and investing in value-based care — the future of senior care — allows us to do that," Palmquist says.