Virgin Pulse, a leading navigation company, and HealthComp, a benefits and analytics platform, have publicized their intentions to merge, aiming to create a comprehensive platform for employer-sponsored benefits. The Wall Street Journal initially reported this $3 billion deal.
Based in Providence, Rhode Island, Virgin Pulse collaborates with employers, health plans, and health systems, offering a navigation platform called Homebase for Health. This provides access to motivating challenges, lifestyle coaches, and specialty partner programs. On the other hand, Fresno, California-based HealthComp partners with employers, brokers, and providers, offering services including claim protection and integrity, clinical care management programs, adjustable technology, superior customer service model, and data-driven reports.
The anticipated merger is backed by significant financial players. Virgin Pulse is financially supported by Marlin Equity Partners, and HealthComp by New Mountain Capital. Upon completion of the merger, New Mountain Capital will be the majority owner of the joint entity, which will serve over 1,000 self-insured employers and more than 20 million members. Morgan Health and Blackstone will also back the combined company.
The merger is expected to provide an integrated assortment of services on the Homebase for Health platform, including plan design, plan management, payment integrity, health navigation, preventive care, and digital therapeutic. These capabilities aim to offer a comprehensive high-tech/high-touch experience for members, overseen by integrated analytics and personalization engine, as outlined by Chris Michalak, CEO of Virgin Pulse.
With healthcare costs continually rising, the need for this integrated approach is substantial. Chad Harris, CEO of HealthComp notes that employers are battling increasing healthcare costs, necessitating a thorough healthcare experience with improved outcomes. This commentary was echoed by Chris Michalak, who highlighted the increasing demand from employees for support in preventative, episodic, and chronic healthcare situations.
The merger is slated for completion in the fourth quarter of 2023, subject to regulatory approvals and other closing conditions under the definitive agreement. As a combined entity, Virgin Pulse and HealthComp will serve more than 1,000 self-insured employers and more than 20 million members, with New Mountain Capital as the majority owner.
For more information on this story, please refer to the original article here.