BetterDoctor acquired by Quest Analytics (Vestar Capital)
Quest Analytics, the leading provider of network access and adequacy services to health plans and insurance regulatory agencies, today announced that it has acquired BetterDoctor, the nation's most accurate provider data management platform. Together, the companies will provide the first comprehensive platform that enables health plans to optimize their member experience while complying with federal and state regulations for network adequacy and accuracy. Terms of the transaction were not disclosed.
Today, healthcare costs in the U.S. are spiraling. As a result, health plans are narrowing the size of their provider networks to keep premiums affordable. Federal and state insurance regulators have subsequently enacted network adequacy and provider data accuracy regulations to ensure plan members have convenient and timely access to physicians and hospitals.
The combination of Quest Analytics' network decision-support tools and BetterDoctor, the only primary-source verified provider data management platform, will enable health plans to provide their members with convenient access to an adequate network of doctors and hospitals and an up-to-date, accurate directory of network providers.
"Narrow networks compound the issue of inaccurate provider data and pose substantial challenges to health plan members seeking the right doctor, hospital and care for themselves and their families," said Roger Holstein, Executive Chairman, Quest Analytics. "Quest Analytics offers an unprecedented solution for health plans seeking to improve their member experience."
"Recent CMS audits have found that the majority of Medicare Advantage health plan provider directories were 30 to 60 percent inaccurate," said John Weis, co-founder and President, Quest Analytics. "Today, we can solve that problem. Because the BetterDoctor provider data management platform is 100 percent primary source verified by the providers themselves, we deliver the most accurate source of data that our 300 health plan customers can depend upon to solve this problem for plan members."
"Quest Analytics recognizes that network adequacy and accuracy are inextricably linked," said Ari Tulla, co-founder of BetterDoctor and Chief Executive Officer, Quest Analytics. "Together, we will help health plans address two of the biggest issues facing health plans today: accessible networks and accurate provider directories for their members and compliance with federal and state requirements."
Charles Boorady, founding managing director, Health Catalyst Capital, will also join the Quest Analytics Board. He commented, "Health plans are under intense pressure. Quest Analytics can substantially improve the member experience, help eliminate surprise billing, and make member-facing mobile applications more user friendly. These improvements can have meaningful impact on advancing the quality of care in the U.S."
The combined company will operate under the Quest Analytics brand. As part of this transaction, Ari Tulla, co-founder of BetterDoctor, will bring his deep background in technology and platform development to become Chief Executive Officer of Quest Analytics. John Weis, co-founder of Quest Analytics, will serve as President of the company, where he will continue to lead customer and product strategy to help health plans build innovative solutions to meet their evolving needs.
Vestar Capital Partners, which acquired Quest Analytics in August 2017, and Health Catalyst Capital, which first invested in BetterDoctor in April 2017, financed the investment.
About Quest AnalyticsQuest Analytics is the first comprehensive platform that enables health plans to optimize their member experience, while complying with federal and state regulations for network adequacy and accuracy. Our provider data management and network analytics services are trusted by the nation's leading health plans, insurance regulatory agencies and benefit consultants to provide consumers with convenient access to an adequate network of doctors and hospitals and an up-to-date, accurate directory of providers. For more information, please visit www.questanalytics.com.
About Vestar Capital PartnersVestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long- term enterprise value, with a focus on Consumer, Healthcare, and Business Services & Industrial Products. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information, please visit www.vestarcapital.com.
About Health Catalyst CapitalHealth Catalyst Capital is a venture capital fund that seeks to invest in high-growth healthcare technology and technology-enabled services businesses that work to improve patient outcomes, enhance patient access, and deliver value-based care. Health Catalyst Capital invested in BetterDoctor as part of its systematic review of companies developing technologies related to Patient Navigation, Network and Referral Management. HCC remains active in this investment theme and others. For more information, visit www.HealthCatalystCapital.com.
