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Arcadia, a health care data integration company, acquired cost and quality analytics player CareJourney, CEO Michael Meucci tells Axios exclusively.

Why it matters: Insufficient data analytics capabilities are one of the sticking points in the shift to a value-based health care model. 

By the numbers: The combined entity will have 400 employees, with a roster of nearly 200 customers.

Peloton Equity-backed Arcadia generated more than $100 million in revenue last year, Meucci tells Axios. 

He declined to comment on the combined company's expected revenue or to disclose deal terms. 

What they're saying: "In this case, there was no fire sale or struggling business," says Meucci. "Now we are two profitable growth companies coming together as one." 

"We are moving towards this more open, interoperable ecosystem that we've spent a decade waiting for," says CareJourney president Aneesh Chopra. 

"We can basically build the data platforms that organizations need to thrive as they make this transition [to VBC from FFS]," says Chopra, who will serve as Arcadia's chief strategy officer.

How it works: Boston-based Arcadia extracts and aggregates disparate clinical and claims-based data from the EHR, providing insights and analytics for multiple use cases.

That includes helping organizations transition to value-based care by, for example, finding and closing gaps in care and managing medical costs for specific populations.

Customers include Southwestern Health Resources, Tandigm, Castell, Rush Health, and Beth Israel Lahey Health.

CareJourney provides cost and quality analytics for value-based networks and providers, focusing on Medicare, Medicaid, Medicare Advantage and commercial claims data. 

Zoom in: ACOs receive claims data monthly but the information is usually on a six-to-nine week lag. That lag gets cut down to 21 days or less with one of CareJourney's products, according to Chopra. 

"Health care organizations need to manage patient care in near real-time and that becomes challenging when the data you rely on is 90 days old," Chopra says.

What's next: Arcadia isn't likely to close another transaction this year, Meucci says.

Catch up quick: Founded in 2002, Arcadia received $125 million in new financing from Vista Credit Partners in April 2023. 

Arcadia has raised a total of more than $300 million with funding from Vista Credit Partners, Cigna Ventures, Merck Global Health Innovation Fund, Revelation Partners, Zaffre Investments and Peloton Equity.

State of play: Arcadia's closest competitor is Innovaccer, which was reportedly seeking $250 million at a potential valuation of $2.5 billion to $3 billion in May.

Exclusive: Arcadia acquires CareJourney to beef up health data analytics

Insufficient data analytics capabilities are one of the sticking points in the shift to a VBC model.

Illustration of a handshake, repeated backward several times. 

Health tech deals

Arcadia, a health care data integration company, acquired cost and quality analytics player CareJourney, CEO Michael Meucci tells Axios exclusively.Why it matters: Insufficient data analytics capabilities are <a class="gtmContentClick" data-vars-link-text="one of the sticking points" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2023/02/22/value-based-care-sticking-points" data-vars-content-id="9e266ff9-532e-4b1c-b62d-d565293d93ee" data-vars-headline="Exclusive: Arcadia acquires CareJourney to beef up health data analytics" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2023/02/22/value-based-care-sticking-points" target="_self">one of the sticking points</a> in the shift to a value-based health care model.

Exclusive: Arcadia acquires CareJourney to beef up health data analytics

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