As part of an effort to pay down its more than $5 billion debt load, Nashville, Tennessee-based health IT company Change Healthcare filed prospectus papers to raise $100 million through an IPO and list shares on the Nasdaq exchange.
The company was initially founded in 1986 as Emdeon, a revenue cycle management and healthcare analytics company. Emdeon acquired patient engagement company Change Healthcare in 2015 for $135 million and was later re-branded under that name.
The current iteration of Change was formed in 2017 when McKesson Corporation merged its Health IT business unit with the existing Change Healthcare assets.
Change Healthcare’s main products are data analytics tools for healthcare providers that are meant to increase patient engagement, assist with quality reporting and risk adjustment, improve reimbursement and handle billing and post-clinical communication.
At last year’s J.P. Morgan Investor Conference, McKesson CEO John Hammergren indicated that the company would be going public sooner rather than later.
According to the company’s S-1 filing, Change’s customer base includes 900,000 physicians, 118,000 dentists, 600 laboratories, 33,000 pharmacies and 5,500 hospitals. In the fiscal year ending in March 2018, the company reported it earned nearly $3.3 billion in revenue, facilitated nearly $14 billion in healthcare transactions and approximately $1 trillion in adjudicated claims.
More recently, the company acquired the assets of blockchain startup Pokitdoc and integrated the technology into its Intelligent Healthcare Network platform. According to their regulatory filings, the company now has launched a blockchain solution that can process up to 20 million healthcare transactions daily.
The company is currently owned by joint venture consisting of McKesson – which owns around 70 percent of the company – and private equity firms Blackstone and Hellman & Friedman.
The listed underwriters on the IPO are Goldman Sachs, J.P. Morgan and Barclays.
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