Buyer: Trella Health
Seller: PlayMaker Health
Sector: Healthcare IT
Keywords: Trella Health, PlayMaker Health, Healthcare IT, Information Technology, J. Scott Tapp, Gregg Boyle,
Trella Health, a post-acute care data analytics company, announced that it has acquired PlayMaker Health.
“[The home-based care industry] has been asking for this,” J. Scott Tapp, president and CEO of Trella, told Home Health Care News. “Instead of having multiple vendors, they wanted a single [organization] that they could turn to.”
Atlanta-based Trella Health offers health care organizations – including direct-contracting entities (DCEs), accountable care organizations (ACOs) and post-acute care providers – market intelligence that enables them to improve their outcomes.
Meanwhile, Brentwood, Tennessee-based PlayMaker Health is a post-acute data and growth solutions provider.
“[The industry needs somebody] who’d be a trusted provider to help them with market intelligence, growth and performance analytics,” Tapp continued. “This acquisition gives them just that.”
Overall, the combined companies give Trella Health a little over 50% market share of the top 200 home health and hospice organizations in the U.S.
“The blend of these two solutions is truly a game-changer for the industry, and I’m looking forward to seeing the impact it will have for post-acute care going forward,” Gregg Boyle, CEO of PlayMaker Health, said in a press release.
Trella Health’s acquisition of PlayMaker Health fits into the company’s strategy, which focuses on customer-driven innovation.
“We want our customers to help us determine where we’re going next – our next feature, our next capability,” Tapp said. “One of the things they’ve regularly asked is if we can provide an integrated customer relationship management (CRM) solution, along with our data, to help their business.”
Last year, Tapp began early talks with Boyle. The two leaders determined that they were hearing similar feedback from their respective customer bases, so opted to pull the trigger on a deal.
“While we compete in the market, we found ourselves going down a path where we were both developing capabilities — and redundant capabilities, if you will,” Tapp said. “That started the initial conversation of, ‘Wouldn’t it be great if we could bring these two capabilities together and create the ultimate platform for these customers in order to help this industry really enhance their businesses?’”
On its end, PlayMaker Health’s CRM capability, which tracks referral opportunities, and electronic medical records (EMR) integration capabilities made the company an attractive acquisition target.
“If you combine our data, with the ability to then integrate into workflows within the CRM world — having great insights, data, and enabling our customers to manage their relationships through the CRM … creates an unbelievable workflow of insights within their business,” Tapp said.
This deal is Trella Health’s first major acquisition since Cressey & Company’s growth investment in November.
The health care-focused private investment firm’s support helped to accelerate the deal, according to Tapp.
“We put a strategy in place last year that looked at all the additional capabilities our customers were asking for,” he said. “As part of that strategy, we went to market to raise strategic investment. Part of Cressey’s thesis, and ours, is to speed up our investment in new capabilities. That’s through our investment in developing those things ourselves, … but also through acquiring other companies in our space, as a platform.”
The M&A market for healthcare companies continues to strengthen in 2022 ahead of projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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