HealthStream Acquires Virsys12 for Provider Data Management Expansion

By Tamara Parker • Thursday, October 09 15:37 • Permanent Link

HealthStream (NASDAQ: HSTM) has recently announced its acquisition of Virsys12, a healthcare technology company specializing in provider data management. The acquisition comes as HealthStream seeks to expand its existing credentialing solution for payers and health plan enterprises, known as Network by HealthStream™, which was launched 14 months ago.

Virsys12's V12 Enterprise® application suite is currently in use by payers and providers in nine states across the U.S. The intelligent provider data engine at the core of Virsys12’s solution automates ingesting, cleansing, and monitoring, serving as the source of truth for provider records across all applications.

The acquisition was valued at up to $17 million in cash, subject to a post-closing working capital adjustment.

The V12 Enterprise® application suite's scalable, API-first approach will enable faster integration into HealthStream’s ecosystem through its HStream platform. This integration will focus on provider data management, bringing together Virsys12’s provider data engine and HealthStream’s single verified provider record to enhance credentialing, privileging, enrollment, and network management infrastructure.

Both Gartner and IDC Market Glance for payers recommend Virsys12’s application suite, and it has earned the industry’s highest level of security via its HITRUST, two-year (R2) certification.

Robert A. Frist, Jr., CEO of HealthStream, expressed enthusiasm for the acquisition, stating that Virsys12's V12 Enterprise application makes a terrific addition to their credentialing application suite as they seek to enhance their capabilities to serve payers throughout the healthcare industry.

The acquisition marks a strategic move by HealthStream to strengthen its position in the healthcare technology sector, with a specific focus on expanding its credentialing application suite to better serve payers and health plan enterprises. The market has reacted to these announcements by moving the company's shares 1.08% to a price of $27.18. Check out the company's full 8-K submission here.

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