Radiologist-founded clinical decision support firm MedCurrent acquired for nearly $25M
MedCurrent, a radiologist-founded clinical decision support firm, has struck a deal to be acquired for up to $24.5 million, leaders announced Tuesday.
Toronto-based software company VitalHub Corp. said it has inked a definitive agreement to buy the CDS provider and its core product OrderWise. Founded in 2003 and also headquartered in Toronto, MedCurrent offers real-time guidance to determine the appropriateness of radiological exams.
Under terms of the deal, VitalHub will issue a cash payment of nearly $8.7 million at closing. MedCurrent can earn up to nearly $15.8 million more, based on performance over the three years following the transaction’s completion.
“We are thrilled to join forces with VitalHub, a company that shares our commitment to improving healthcare through innovation,” thoracic radiologist Steve Herman, MD, founder and CEO of MedCurrent and an associate professor at the University of Toronto, said in a statement. “This partnership will allow us to accelerate the development and deployment of our solutions, reaching more healthcare providers and patients worldwide.”
VitalHub bills itself as a “leading” software company dedicated to empowering healthcare providers. Its suite of solutions is focused around the electronic health record, case management, care coordination, patient flow and workforce automation. MedCurrent’s OrderWise, meanwhile, is primarily geared toward improving the appropriateness of medical imaging orders. Herman and colleagues currently provide their solutions to over 80 customers across the U.S., Canada, U.K. and Australia. VitalHub believes OrderWise will complement its existing Patient Flow software suite, “providing a comprehensive solution to manage healthcare resources more effectively.”
Currently, Canadian hospitals spend nearly $2.2 billion annually on medical imaging. VitalHub believes addressing inefficiencies in the specialty is “essential to reducing costs and enhancing patient outcomes.” In 2022, average wait times were about 67 days for a CT scan in the country and 133 days for an MRI, “significantly exceeding the acceptable 30-day standard.” These delays have resulted in roughly $2.5 billion in lost GDP annually, experts estimate. About 30% of certain medical tests, procedures and treatments are potentially unnecessary, according to the Canadian Institute for Health Information.
“MedCurrent’s unique CDS software addresses a clear and critical need in the healthcare system,” Dan Matlow, CEO of VitalHub, said in the announcement. “By integrating MedCurrent’s solutions with our existing offerings, we believe that we can significantly reduce unnecessary tests and procedures, ultimately lowering costs and improving patient care.”
The transaction is expected to close by the beginning of September, pending shareholder and court approval. You can read more about the deal in the definitive agreement document here.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.