HealthStream has bought Providigm LLC, a Denver-based company focused on quality assurance and performance improvement for $18 million, the companies announced in mid-January.
Providigm owns a quality management system called abaqis®, which is a leading program for skilled nursing.
“Providigm is a terrific company doing important work that is strongly aligned with our long-standing vision to improve the quality of healthcare by developing the people that deliver care,” said HealthStream President and CEO Robert A. Frist Jr.
Providigm will remain in its Denver office and plans to retain around 45 employees. The acquisition of Providigm allows it to expand workforce solutions, such as Phase 3 regulations scheduled to start in November, HealthStream executives said.
“The third phase requires all skilled nursing facilities to have programs in place to assess competencies, provide competency-based education, and document their effectiveness,” the company said. “If flagged for substandard compliance, admissions can be frozen and financial penalties levied. To date, over 2,000 skilled nursing facilities are already using Providigm’s abaqis to achieve better outcomes and compliance with RoP.”
HealthStream’s purchase of Providigm is “particularly opportune — as they have the resources, knowledge and technology to advance our solutions to the next level, helping providers achieve the best outcomes,” said Providigm CEO Andrew Kramer.
In addition to the equity purchased for $18 million in cash, an additional $500,000 in cash may be paid at the closing, based on Providigm’s performance in an 18-month period following closing, Frist said.
In other HealthStream news, the company announced the launch of American Red Cross Resuscitation Suite™ on Jan. 17. It consists of Basic Life Support, Advanced Life Support and Pediatric Advanced Life Support competency-development curricula, offering certification to healthcare professionals.
From the February 01, 2019 Issue of McKnight's Long-Term Care News
