Change Healthcare and MDsave announced that Change Healthcare has made a strategic investment for a minority position in MDsave. MDsave is an innovative technology and healthcare payments company that simplifies the healthcare services shopping and payment experience for consumers. The company works with providers to bundle complex medical procedures into a single upfront payment, thereby providing consumers with discounted out-of-pocket healthcare bills and a higher-satisfaction retail experience. MDsaves patented workflow has been implemented in hundreds of hospitals nationwide, saving consumers more than 40% of their out-of-pocket costs while significantly increasing net collections for providers.
Change Healthcares investment is part of a broader collaboration between the two companies to improve the way consumers, providers, payers, and employers interact in the healthcare purchasing and payment process. Together, Change Healthcare and MDsave will work to enable increased price/cost transparency, reduce inefficiency, and lower costs.
MDsave has created a proven consumer-centric experience that saves patients money while demonstrating a high return on investment by increasing net collections for providers, said Neil de Crescenzo, president and chief executive officer, Change Healthcare. By combining the MDsave platform with our deep healthcare payment capabilities, expertise in bundled payments, access to data, and connectivity across stakeholders, we believe we can modernize the consumer experience for our broad customer base, including providers, health plans, and employers.
Change Healthcares patient/consumer experience approach is a retail-like solution that enables providers to offer patients a full self-service, personalized digital care journey from initial search through final payment. This helps consumers engage effectively in maintaining or improving their health, which is increasingly driven by their increased financial accountability.
According to government data, more than 43 million Americans with private health coverage were on high-deductible health plans in the first nine months of 2017, and 28.9 million more were uninsured. Working together, Change Healthcare and MDsave aim to provide savings opportunities for consumers, as well as implement new payment solutions that benefit a broad base of health plan members and employees of self-insured employer groups. Change Healthcare will look to expand the reach of MDsave solutions to physician groups, radiology, and anesthesiology practices, and dental providers, through its existing customer base.
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We are excited to expand our relationship with Change Healthcare, and draw upon their deep expertise in technology and broad reach across healthcare, said Paul Ketchel, cofounder and chief executive officer, MDsave. Through this collaboration, MDsave can increase and accelerate our value proposition more broadly as well as focus on whats needed to scale our offerings.
Former Senator Bill Frist, M.D., an MDsave investor and board member, added that with consumers paying out of pocket for an ever-larger portion of their healthcare, redefining how providers, payers, and consumers interact is essential. MDsaves model encourages providers to think differently about consumer out-of-pocket obligations, and has been revolutionary from a consumer-experience perspective, but we need to do more, faster, said Senator Frist. Change Healthcares expertise and reach, combined with several innovative consumer experience efforts to date, make them an ideal investor and collaboration partner that we believe will deliver tremendous value to accelerate our growth.
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Harpeth Capital, LLC served as financial advisor to MDsave in connection with this transaction.
MDsave is a healthcare technology company revolutionizing how hospitals and health systems increase access for the patient-consumer in an evolving market. MDsaves unique bundling technology makes medical procedures transparent, shoppable and instantly transactable. Through MDsaves patented collection software, patients pay one upfront price for prospective or retrospective care, and payment is automatically distributed to all bundle participants within seven days. MDsave empowers patients to take control over their healthcare decisions and gives hospitals a seamless way to collect from patients. For more information, visit MDsave.com.
About Change Healthcare
Change Healthcare is inspiring a better healthcare system. Working alongside our customers and partners, we leverage our software and analytics, network solutions, and technology enabled services to enable better patient care, choice, and outcomes at scale. As a key catalyst of a value-based healthcare system, we are accelerating the journey toward improved lives and healthier communities. Learn more at changehealthcare.com.
Annie Scranton, Pace Public Relations