Waystar’s recent acquisition of Patientco will help the company collect fees from patients. Here are the top-line bullets you need to know.
Waystar, a revenue cycle management company, has acquired Patientco, a payment platform for patients, for $450M.
Who are the parties to the deal?
- Waystar: US-based Waystar is a revenue cycle management company. The company provides cloud-based healthcare claim management and patient payment services. It supports over 500,000 providers, 1,000 hospitals and health systems, and 5,000 payers and health plans. The company remains acquisitive and has acquired 7 companies in the last 3 years including e-solutions, Recondo Technologies, Digitize AI, Paro, Ovation Revenue Cycle Services, and Connance.
- PatientCo: Georgia-based PatientCo is a payments company that focuses on patient healthcare expenses. It provides a platform for non-traditional communication with the patients, such as SMS and emails, as well as a fee collection service. Approximately 30M patients utilize the company’s messaging and payment services. PatientCo has raised $36.1M in total funding.
Source: PatientCo
Why does the market matter?
The acquisition strengthens Waystar’s position in the revenue cycle management platform
- The global revenue cycle management platform is projected to grow at a CAGR of 13% and reach a value of $258.2B by 2027, according to Fortune Business Insights.
- North America led the revenue cycle management (RCM) market in 2020, accounting for 52.6% of total revenue, according to Grand View Research.
- The industry is expected to benefit from the shift in focus of healthcare companies toward virtual engagements and telehealth due to Covid-19.
