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Thursday, September 28, 2023

Virgin Pulse, HealthComp To Merge By means of $3B Deal

Navigation firm Virgin Pulse and advantages and analytics platform HealthComp introduced Wednesday that they plan to merge to create an built-in platform for employer-sponsored advantages.

The $3 billion deal was first reported by The Wall Road Journal. Windfall, Rhode Island-based Virgin Pulse works with employers, well being plans and well being methods. It presents a navigation platform referred to as Homebase for Well being, which offers entry to motivating challenges, life-style coaches and specialty accomplice applications. Fresno, California-based HealthComp works with employers, brokers and suppliers. It presents declare safety and integrity, scientific care administration applications, customizable expertise, a customer support mannequin and data-driven experiences.

Virgin Pulse is backed by Marlin Fairness Companions, whereas HealthComp is backed by New Mountain Capital, in line with a information launch. New Mountain Capital would be the majority proprietor of the joined entity, which can serve greater than 1,000 self-insured employers and greater than 20 million members. The mixed firm may also be backed by Morgan Well being and Blackstone.

By means of the merger, plan design, plan administration, fee integrity, well being navigation, preventive care and digital therapeutic companies will all be built-in into Virgin Pulse’s Homebase for Well being platform.

“We’re combining well being and wellbeing, navigation and advocacy [from Virgin Pulse], plus plan administration and fee integrity [from HealthComp], and making it attainable for a member to handle all of those capabilities by way of a single high-tech/high-touch expertise. On high of this, it’s going to all be powered by the trade’s most strong and predictive analytics and personalization engine,” declared Chris Michalak, CEO of Virgin Pulse, in an e mail. Michalak will function the CEO of the mixed firm.

Chad Harris, CEO of HealthComp, added that the sort of service is required as employers are battling growing healthcare prices.

“As healthcare prices proceed to rise, the necessity for an built-in expertise within the employer-sponsored advantages ecosystem has grow to be much more essential, and collectively we are able to create a complete healthcare expertise with higher outcomes and outcomes,” Harris mentioned in an e mail.

Michalak echoed Harris’ remark, noting that “employers are dealing with growing value pressures plus heightened demand from workers to supply whole-person help for preventative, episodic and persistent healthcare conditions.” Certainly, employers’ healthcare prices are anticipated to improve by 8.5% in 2024 to greater than $15,000 per worker, in line with a latest Aon report.

The merger deal is anticipated to shut within the fourth quarter of 2023, pending regulatory approvals and “satisfaction of all closing situations beneath the definitive settlement.”

Photograph: mikdam, Getty Photos

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