Originally published by Fierce Healthcare on March 6, 2023
Healthcare startup Transcarent is bulking up its portfolio by snapping up part of virtual care company 98point6.
Transcarent aims to make healthcare more accessible and affordable, and adding 98point6's physician group and other elements to the fold will add Al-powered virtual care as well as an associated provider group with experience in delivering on-demand care, according to the announcement. As part of the deal, hundreds of 98point6's existing employer, health system and payer partners including Boeing, Kindercare and Banner|Aetna will gain access to Transcarent's broader suite of services.
Forbes pegged the health tech deal value at $100 million.
Transcarent's platform includes solutions for pharmacy, home health and chronic care management.
“In healthcare, complexity is the problem and simplicity is the answer," CEO Glen Tullman said in the press release. "Transcarent is committed to creating an easy-to-use health and care experience that people love, that improves care, and that reduces the cost of that care."
The two companies expect the deal to close March 31, and, once it does, 98point6 will continue to focus on developing new solutions and licensing its offerings to providers, according to the announcement, and the remaining assets will rebrand as 98point6 Technologies.
“By combining the 98point6 AI-powered virtual care technology and an affiliated group of world class physicians with Transcarent’s comprehensive care platform, we will deliver consumers and employers what they really want and need," Tullman added. "Leveraging AI to drive personalization and access to care will revolutionize the virtual care experience, for the first time combining best in class technology with human touch. That’s a winning combination.”
The company said in the release that the acquisition is the latest step in Transcarent's bid to create a healthcare experience that's designed for consumers while aligning the organizations holding the purse strings. 98point6's services will complement Transcarent's existing platforms as well as partners for virtual and in-person care.
When the deal closes, Transcarent members can opt in to 98point6's offerings, according to the announcement.
“We can think of no better company to continue nurturing our customers and Members than Transcarent as we enter our next phase of growth, which will focus on software licensing under the 98point6 Technologies brand,” said Jay Burrell, CEO of 98point6, in the release. “Virtual care is the bedrock of health care. We remain committed to innovating new technology solutions and business models that work upstream to give health care providers the infrastructure they need to succeed with consumers.”