JERSEY CITY, N.J., June 13, 2011 (GLOBE NEWSWIRE) — Verisk Analytics, Inc. (Nasdaq:VRSK), a leading source of information about risk, announced today it has signed an agreement to acquire Health Risk Partners, LLC (HRP), a leading provider of solutions to optimize revenue, ensure compliance, and improve quality of care for Medicare Advantage and Medicaid health plans. The acquisition is subject to the completion of customary closing conditions. Based in Richmond, Virginia, HRP has a customer base representing more than 5.5 million Medicare Advantage, Medicare Part D, and Medicaid lives. This acquisition will further advance Verisk’s position as a major provider of data, analytics, and decision-support solutions to the healthcare industry.
HRP’s systems, which analyze Medicare data to ensure compliance with CMS (Centers for Medicare & Medicaid Services) guidelines, assist payers in payment integrity, data collection, and encounter data submission. By using HRP’s ReconEdgeTM, a web-based risk adjustment reconciliation system, healthcare payers can assess their organizations’ opportunities and ensure compliance in payments. HRP also offers expertise in medical record coding.
“As compliance with government mandates becomes increasingly intertwined with the ability of healthcare payers to run their businesses profitably, HRP is uniquely positioned to provide high-quality solutions with measurable ROI,” said Scott Stephenson, president and chief operating officer of Verisk. “We believe HRP’s capabilities will align naturally with our Verisk Health risk management tools and existing customers, creating a more comprehensive solution for our clients.”
“We are eager to combine our other solutions for the Medicare Advantage and Medicaid markets with the capabilities of HRP,” added Mike Coyne, president of Verisk Health. “Verisk Health’s focus on helping payers drive profitability is vital in today’s market environment.”
“Verisk’s deep analytical expertise and strength in HEDIS and quality-improvement programs will enable our clients to strategically position themselves as government programs move to quality-based reimbursement models,” said Susan Cimbalo, chief executive officer of HRP. “We believe our continued growth will be driven through the integration of our combined product suite.”
The purchase price will be $60 million in cash, of which $13 million will be funded into escrow and is expected to be paid in 2012. The transaction is expected to be accretive to adjusted EPS in 2011. Susan Cimbalo, who founded HRP in 1999, will continue to lead the company. Ms. Cimbalo has 17 years of experience working with healthcare operations and finance. She has been a leader in Medicare compliance and revenue recovery projects since 1998 for some of the most successful health plans in the United States.
About Health Risk Partners, LLC
Health Risk Partners, LLC, is a leading healthcare technology firm and provider of risk adjustment services. The HRP team has extensive experience working with federal and state healthcare payment methodologies and transforming them into solid business practices for Medicare and Medicaid health plans. HRP is dedicated to helping its clients attain the highest levels of compliance, profitability, and strategic planning.
About Verisk Analytics
Verisk Analytics (Nasdaq:VRSK) is a leading provider of information about risk to professionals in insurance, healthcare, mortgage, government, and risk management. Using advanced technologies to collect and analyze billions of records, Verisk Analytics draws on vast industry expertise and unique proprietary data sets to provide predictive analytics and decision-support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and many other fields. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com.
MWW Group (for Verisk Analytics)
Treasurer and Head of Investor Relations
Verisk Analytics, Inc.