Healthstream Acquires Virsys12 for Healthcare Credentialing Solution

By Ahmed Jameison • Thursday, October 09 10:21 • Permanent Link

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

According to the press release, there are approximately 1,200 health and medical insurance companies in the U.S. referred to as "payers" who require credentialing software to streamline the complex process of verifying healthcare providers' qualifications, enrolling them into insurance networks, and actively managing and maintaining those networks. Virsys12’s V12 Enterprise® application suite is currently used by payers and providers in nine states across the U.S.

The acquisition was valued at up to $17 million in cash, subject to a post-closing working capital adjustment. This expansion is expected to enhance Healthstream’s ability to market and grow its credentialing business among the nation’s payers going forward.

Healthstream's CEO, Robert A. Frist, Jr., expressed a warm welcome to Virsys12’s customers and employees, emphasizing the shared vision of reducing the administrative burden on payers and providers by delivering a single verified provider record and intelligently automating key processes around that record.

The press release also highlighted that both Gartner and IDC market glance for payers recommend Virsys12’s application suite, and customers of the V12 Enterprise application have the added assurance of having earned the industry’s highest level of security via its HITRUST, two-year (R2) certification.

The integration of Virsys12's application suite into Healthstream’s ecosystem through its Hstream platform is expected to be faster and smoother due to its scalable, API-first approach.

The market has reacted to these announcements by moving the company's shares 1.08% to a price of $27.18. If you want to know more, read the company's complete 8-K report here.

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