Boise-based VisitPay will soon get new owners.
R1 RCM, Inc., a publicly traded company based in Chicago announced it would buy VisitPay. The deal includes $300-million in cash, plus a tax benefit. giving an effective purchase price of $260 million.
As BoiseDev reported in 2019, VisitPay – which started as iVinci Health, provides a billing system for hospital groups across the country. You’ve likely used VisitPay if you paid a bill at Boise’s St. Luke’s Health System.
The company launched in Boise in 2010 and landed St. Luke’s as one of its first clients. VisitPay says it’s product is now in use at one-in-ten of the nation’s non-profit hospitals.
A PR firm tells BoiseDev that VisitPay has 120 employees in Boise, and plans to keep its headquarters here. The combined company expects to keep a presence here, and R1 employees may relocate to Boise.
“It had to be better for our investors,” VisitPay CEO Kent Ivanoff said. “It had to be better for our clients and their patients. It had to be better for our employees. And as an Idahoan, it was important to me that it had to be better for our community.”
R1 hopes to close deal soon
R1 calls itself a “revenue cycle management” provider – using tools to provide analytics and modeling to hospitals.
“VisitPay’s offering adds to R1’s intelligent patient access platform and underscores our drive to empower providers with a comprehensive technology solution to deliver markedly higher satisfaction and better financial outcomes,” R1 CEO Joe Flanagan said. “We look forward to welcoming the VisitPay team to R1.”
R1 says the deal should close in the third quarter of this year, after getting regulatory OK and meeting other closing conditions.
The VisitPay deal is the latest in a string of Boise startups landing large buyouts, including CradlePoint, Kount, TSheets, and others.