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Health-tech company IKS Health has acquired US-based tech-enabled clinical documentation services company AQuity Solutions for $200 million (about Rs 1,600 crore).
With experience of over 40 years, AQuity Solutions offers medical coding and revenue integrity solutions for healthcare, and its acquisition would help clinicians deliver better, safer and more efficient care, said a statement from IKS Health, a venture reportedly backed by the late Rakesh Jhunjhunwala. Sachin K Gupta, Founder and CEO of IKS Health, said, “US healthcare is in crisis, one that is deepening from all sides. Financial instability, large-scale staffing challenges, and the precarious health status of so many Americans all call for deeper, more comprehensive solutions that address these root issues.”
“Delivering better, safer care is everyone’s top priority — but, too often, the ‘chores’ of healthcare get in the way of that core purpose. To help turn the tide amidst this state of crisis, we firmly believe that revitalising the clinician-patient relationship and helping our partners thrive financially are both fundamental,” he said.
The combined company, which will operate as IKS Health, will have annual revenues of $330-plus million, and a global workforce of over 14,000 employees serving over 150,000 clinicians in many of the largest hospitals, health systems, and speciality groups in the US, IKS said.
IKS Health will raise Rs 1,000 crore from three leading banks — JP Morgan, CITI and HSBC — for financing a Rs 1,600-crore acquisition; the balance would be raised from internal accruals, a company representative said. They would also recruit 50,000 more resources within the next three years, the representative added. The combined revenues of IKS Health and AQuity is around Rs 2,700 crore, they said.
IKS was founded in 2006, and the acquisition would advance its care enablement platform, consisting of technology and service offerings across revenue optimisation, clinical support, value-based care, and digital health solutions, the company said. By reducing administrative, clinical, and financial burdens, IKS helps clinicians focus on their core purpose of delivering care, it said.
Kashyap Joshi, CEO of Aquity, said the acquisition would accelerate their efforts to deliver “meaningful, pragmatic, and proven solutions for the entire continuum of care, so that patients have a better experience”. AQuity employs over 7,000 clinical documentation specialists across the US, India, Australia, Canada, and the UK, for physician office services, provider documentation solutions, coding and revenue cycle management, and additional documentation services.
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