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Health software company Edifecs continues acquisition run, swoops up Health Fidelity

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December 26, 2021
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Bellevue, Wash.-based health software company Edifecs has acquired Health Fidelity, a San Mateo, Calif.-based startup. The acquisition will enable Edifecs to build up risk adjustment tools in its software products for health companies.

Health Fidelity mines language in healthcare data to assess a patient’s risk for various conditions. The process facilitates billing for value-based care, which de-emphasizes fee-for-service payment in favor of prevention and primary care.

The deal comes on the heels of Edifecs’ acquisition of another healthcare data-mining startup, Talix, in September. “By combining Health Fidelity and Talix solutions with our own workflow, Edifecs can now offer payers and providers clinical and coding solutions that deliver risk adjustment insights across many operational areas all while enabling the shift to value-based care,” said Edifecs CEO Venkat Kavarthapu in a statement.

Edifecs, which also has offices in Atlanta and Mohali, India, sells enterprise software to more than 350 healthcare companies, including BlueCross BlueShield, Cigna, Humana, and others. Health Fidelity’s more than 80 employees will be fully integrated into Edifecs, bringing its headcount to more than 1,030 employees globally, according to a spokesperson. Health Fidelity employees will continue to work from their current locations. Terms of the deal, which finalized Monday, were not disclosed.

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