Nomi Health Spends $26.5 Million To Buy Two Firms
These acquisitions further strengthen Nomi Health’s move into the direct healthcare space, with one acquisition bolstering its support of healthcare professionals, and the other centered specifically on helping employers and third-party administrators lower healthcare costs through pre-negotiated rates for fee-for-services
For the second time in just over six months, Nomi Health has expanded again via the acquisition route, spending $26.5 million to acquire two separate yet related companies: Sano Surgery and Everyone Health.
Back in January, Nomi announced it had acquired Salt Lake City-based Artemis Health, a healthcare analytics provider with, at the time, over 10 million lives on its platform via employers, benefits advisors, and health plans.
{NOTE: The Artemis acquisition took place less than a month after Nomi announced last December it had closed a $110 million Series A round of funding.}
According to last Wednesday’s announcement from Nomi,
“The acquisitions enable buyers to turn to Nomi Health for a full suite of solutions — analytics, care delivery and a direct network — all underpinned by a modern claims infrastructure and payment rails.”
While speaking with me last week, Nomi’s COO and Co-Founder, Joshua Walker, told me that Nomi has now served over 15 million patients through its direct healthcare services.
Sano Surgery, he explained, is provider-focused, while Everyone Health is really centered on consumers, with both firms working to lower healthcare costs.
The news release describes the differences this way:
“Everyone Health has agreements with self-funded employers and third-party administrators for pre-negotiated, all-inclusive prices that save employers up to 70% relative to commercial fee-for-service rates. The company delivers these savings via Sano Surgery’s direct contracting with more than 10,000 physicians and facilities — surgical hospitals, ambulatory surgery centers, endoscopy centers, radiology centers, labs and more.”
The announcement says that these physicians and facilities are based in 300 of the largest cities in the United States and have now been added to Nomi’s national provider network.
According to Walker, the greatest force driving the upward climb of healthcare costs is—
“There’s too much distance between consumers and the providers.”
Nomi’s entire purpose, he said, is to eliminate that figurative distance.
By acquiring Sano Surgery and Everyone Health, Nomi expects to “deliver higher quality medical treatments and services at lower prices. [This means that] physicians [will] benefit from predictable volumes and payments, while patients [will] enjoy a more streamlined care and billing experience.”
When asked about specifics about these most recent acquisitions, Walker said that payment was in a blend of cash and stock, but he did not disclose the ratio.