Navicure is close to completing the $750 million acquisition of cloud-based RCM solutions company Zirmed Inc, according to a report from Reuters.
Navicure is a provider of integrated cloud-based medical claims management and patient payment solutions that help hospitals and other healthcare providers improve efficiency and reduce costs. The company serves more than 100,000 providers nationwide.
Zirmed is a Kentucky-based healthtech company that provides software to support all aspects of revenue cycle management. This is the process used by hospitals and healthcare providers in the United States to track the revenue from their patients from their initial appointment to their final payment of balance. The company’s award-winning solutions “extract actionable insights that improve its clients’ revenue cycle—while streamlining workflows and increasing operating efficiencies.”
There is a reason companies are investing in this area, with the latest market research suggests high growth in the coming years. The Global Healthcare Revenue Cycle Management (RCM) Software Market report is forecasting growth at a CAGR of 4.5% during the period 2017-2021. It says hospitals and health systems prefer to outsource the RCM services due to the issues pertaining to revenue cycle processes and workflows.
The analysts outline a number of trends that are driving growth in the market:
“The latest trend gaining momentum in the market is strong clinical network connectivity with medical practitioners. Clinical integration is the coordination in the healthcare network across functions, people, and activities. Clinical integration with physicians enables the healthcare companies to enhance the efficiency and quality of the healthcare system. Successful clinical integration between physicians and hospitals helps build a payment model as it takes both quality and cost into consideration. Clinical information can be completely integrated with EHR for the transition to new payment models.
“According to the report, one of the major drivers for this market is increase in recovery audits due to changing healthcare regulations. Healthcare service providers are under constant pressure caused by the change in government regulations in the healthcare sector. They are experiencing a rise in the cost of operations and a reduction in revenues. In addition, the revenue of the provider is under continuous scrutiny and audit by recovery audit contractors.”
Neither Zirmed or Navicure provided comment when contacted by Reuters.
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