Ingenix delves into high-acuity IT services with Picis purchase

Ingenix, a health IT and services company that is also a wholly owned subsidiary of UnitedHealth Group, has signed a definitive merger agreement to acquire Picis, a provider of health IT for hospital emergency, surgery and intensive-care departments and hospital financial information systems, for an undisclosed sum.

The Eden Prairie, Minn.-based Ingenix said the acquisition will extend its capabilities into the high-acuity information systems market and could strengthen its position in the delivery system, where Ingenix serves nearly 6,000 U.S. hospitals with consulting, technology and outsourcing technologies. Picis said its systems are installed in more than 1,800 medical centers, hospitals and integrated delivery networks in 19 countries throughout North America, Europe and Asia.

Last year, Ingenix settled its alleged healthcare fraud charges. In January 2009, UnitedHealth offered a $50 million settlement with N.Y. Attorney General Andrew M. Cuomo, to overhaul two of its databases used to determine out-of-network reimbursement amounts for certain health plan members. As part of the settlement, UnitedHealth agreed to fund a nonprofit entity to develop and own a new, independent database to replace Ingenix’ Prevailing Health Charges System and Medical Data Research databases, which are used by health plans and employers to determine the reimbursement rates to members who receive physician services outside their managed care network.

Since that time, Ingenix acquired AIM Healthcare Services, and its affiliated companies, Netwerkes and Ingram & Associates, which provide billing technologies for U.S. healthcare payor and hospital clients in July 2009. Then, in November 2009, Ingenix bought CareMedic Services, which offers applications for patient registration, financial clearance, coding and compliance, bill submission, denials management and the remittance processing components of the hospital revenue cycle.
 
With this transaction, Ingenix said it will maintain Picis’ operations in Wakefield, Mass., as well as its other offices and operations in the U.S. and Europe. The transaction is subject to regulatory approval and other customary closing conditions and is expected to close in the third quarter, according to the company.