Premier, Inc. subsidiary Contigo Health, LLC, a provider of comprehensive services that optimize employee health benefits, has closed its transaction to acquire key assets from TRPN Direct Pay, Inc. and Devon Health, Inc. (collectively, TRPN). Acquired assets will include contracts with more than 900,000 providers across 4.1 million U.S. locations, as well as licenses to TRPN’s proprietary cost containment technology.
Contigo Health, which collaborates directly with self-funded employer health plans and health systems to improve employee access to high-quality healthcare, plans to leverage the acquired assets to develop the provider contracts into a new out-of-network wrap product named Contigo Health ConfigureNet. This new product is expected to complement and help grow Contigo Health’s health plan administration products, improving access to quality healthcare and reducing the cost of medical claims through pre-negotiated discounts with its network providers. Claims will be aligned to the network provider’s contracted rate through an electronic data interchange to help ensure a rapid and seamless process for health plans and providers alike.
Premier currently anticipates the transaction to generate adjusted earnings per share accretion of $0.01 to $0.02 in fiscal 2023. In addition, the company expects the transaction to result in $40 million to $60 million in incremental annual net revenue and contribute 40 percent to 50 percent in adjusted EBITDA margin once fully scaled in the next three to five years.
“We are pleased to complete this transaction and look forward to the launch of Contigo Health ConfigureNet later this fall,” said Michael J. Alkire, President and CEO of Premier. “With the acquisition of these assets, Contigo Health is well positioned to expand into self-funded employer health plans across the country, offering a differentiated solution that better manages costs and offers more choices to employees.”
