HealthRight acquires HealthNEXT

When Conshohocken, Pa.-based digital health company HealthRight was looking to acquire a company that could help lower healthcare costs for employees, the list was quickly narrowed to one: Newton Square’s health strategy provider HealthNEXT.
“There was really only one out there: the best one is HealthNEXT,” said HealthRight CEO John Palumbo. “It has over 400 peer-reviewed papers on lowering employee healthcare costs.”
The terms of the acquisition, though undisclosed, were settled last Thursday. The joint workforce for the combined company was tallied at 200, and a valuation estimate puts the worth of the company at $100 million.
But it’s not all about the moolah in the coolah. Part of what led the company to acquire the strategy firm was a philosophical issue. HealthNEXT will help HealthRight deliver what consumers are demanding from ehealth which, according to Palumbo, means offering access to both screens and stethoscopes.
“The consumer wants high-touch and high-tech experiences,” Palumbo said. “They want to know they can get 360-degree coordinated care. They need a provider who will leverage technology but will also be able to speak to them.”
HealthRight has reportedly conducted a million tele-consults and boasts of having a network of over 4 million members.
But according to Palumbo, telemedicine by itself isn’t enough to move the cost curve for employers. “It’s another low-cost alternative in a very limited set of conditions. What we have to do if we want to offer coordinated care is to build a virtual high performing network and a high-performing in-person network,” Palumbo said.
Palumbo, who will be acting as CEO of the combined company, says there’s no cause for concern about the stability of the workforce.
“Current board members will all have senior executive and leadership roles and, if anything, we’ll be expanding our job offering,” he said.