For these uses, innovative digital technology is working “behind-the-scenes” as part of a doctor’s workflow, according to Ray. More providers are turning to software tools that help capture data from a patient visit and document it into the patient’s record, as well as to draw out insights that can be used to identify at-risk patients and suggest next steps.
Providers are also looking at involves workforce management, such as software tools that credential and schedule clinical staff, for “back-office digital innovation,” he said.
Alayacare, a company that sells practice management software for home healthcare providers, raised roughly $183 million in a Series D funding round.
There were 20 mergers or acquisitions of practice management tools during the first half of the year; telehealth was the only digital health category with more M&A transactions at 25.
In total, 136 M&A transactions took place during the first half of the year, 73 of which took place in 2021’s second quarter. Provider- and practice-focused companies “dominated” M&A activity for the quarter, comprising 43 of the 73 transactions, according to Mercom’s report. Thirty of those transactions involved health information management companies.
Health information management companies were involved in 59 M&A transactions in the first half of 2021, compared to 34 in the first half of 2020.
Microsoft Corp.’s $19.7 billion purchase of Nuance Communications—a company that sells artificial-intelligence clinical documentation tools—represents the priciest acquisition so far this year, followed by Optum’s $13 billion purchase of Change Healthcare—a company that sells revenue cycle management tools—which is being reviewed by the Justice Department.