Streamline Health Announces Signing of Definitive Agreement to Sell Enterprise Content Management Business to Hyland
Thursday, December 19th, 2019
Streamline Health Solutions, Inc. (STRM), provider of integrated solutions, technology-enabled services and analytics supporting revenue cycle optimization for healthcare enterprises, announced it signed a definitive agreement to sell its legacy Enterprise Content Management (ECM) business to Hyland of Westlake, Ohio.
Streamline Health plans to use the proceeds of the sale to pay off its term loan with Bridge Bank and to fund continuing development and incremental investment in sales and marketing in support of its eValuator™ cloud-based pre- or post-bill coding analysis platform.
The closing of the transaction is subject to customary closing conditions, including the approval of the transaction by Streamline Health's stockholders, and the company expects the transaction to close on or around the end of its 2019 fiscal year, which is January 31, 2020.
Streamline Health, through its eValuator technology, is leading an industry movement to improve healthcare providers' financial performance by moving mid-to-late revenue cycle interventions upstream, optimizing coding accuracy for every patient encounter prior to bill submission. By improving coding accuracy before billing, providers can reduce lost revenue, mitigate overbilling risk, and reduce denials and days in accounts receivable. This enables providers to turn unpredictable revenue cycles into dynamic revenue streams. In addition, providers can leverage eValuator's capabilities to improve the efficiency of post-bill audits by focusing only on those records with the greatest financial impact or propensity to be less than 100 percent accurate.
Hyland Healthcare provides connected healthcare solutions that harness unstructured content at all corners of the enterprise and link it to core clinical and business applications such as electronic medical records (EMR) and enterprise resource planning (ERP) systems. Hyland Healthcare offers a full suite of content services and enterprise imaging tools, bringing documents, medical images and other clinically rich data to the right healthcare stakeholders at the right time, when and where they need it .
Hyland Healthcare's comprehensive view of patient information accelerates business processes, streamlines clinical workflows and improves clinical decision making. By providing complete patient information, clinicians can focus on patient care rather than searching across disparate digital - or even paper - archives, ultimately creating an improved experience for both patients and providers.
"We firmly believe the future market opportunity for software and services designed to help healthcare providers deal with the challenges they face in the middle of their revenue cycle is greater than the replacement market for our legacy solutions," stated Tee Green, President and Chief Executive Officer, Streamline Health. "Velocity comes through laser focus on primary objectives and upon closing of this transaction, the net proceeds will enable Streamline Health to retire all existing bank debt and become a fast-growing entrepreneurial company with approximately $9 to $10 million on our balance sheet to amplify support of our eValuator solution.
"We appreciate the partnership that we have enjoyed with our many long-time ECM clients and know they will benefit from the breadth of content services capabilities available to them with Hyland Healthcare."
"Adding Streamline Health's ECM business to the Hyland Healthcare portfolio will further our mission of helping healthcare organizations improve the lives of patients and enhance the experiences of healthcare consumers around the world," said Bill Priemer, President and Chief Executive Officer of Hyland. "Over the past 28 years, Hyland Healthcare has grown significantly by pursuing our vision to be the world's leading content services provider, known not just for our innovative technology, but for our customer focus and workplace culture as well. We firmly believe that bringing Streamline Health's ECM business into the fold will make for the best possible outcomes for our customers and the people they serve."
Houlihan Lokey acted as financial advisor and Troutman Sanders acted as legal advisor to Streamline Health in connection with the transaction.