Veradigm Acquires RCM Company Koha Health

Dive Brief:

• Veradigm announced on Tuesday the healthcare IT firm had acquired revenue cycle management company Koha Health for an undisclosed sum. 
• The purchase will boost Veradigm’s capabilities in ambulatory services and musculoskeletal care, the company said in a press release. 
• The deal comes weeks after Veradigm, formerly known as Allscripts, revealed it wouldn’t be delisted yet from Nasdaq for failing to file timely financial reports with federal regulators. 

Dive Insight:

Koha is a New Hampshire-based revenue cycle firm focused on musculoskeletal care and orthopedic practices.

The purchase will add to Veradigm’s specialty knowledge as well as improve its ability to work with ambulatory healthcare providers and surgical centers that may be using multiple electronic health record systems, the company said. 

“Today’s announcement represents an exciting opportunity for Veradigm to scale our revenue cycle services portfolio by leveraging additional capabilities and subject matter expertise to better serve the needs of the market,” Tom Langan, president and chief commercial officer at Veradigm, said in a statement.

The deal comes after Veradigm recently faced delisting from Nasdaq for failing to file its annual report for 2022 as well as quarterly reports for the first, second and third quarters in 2023.

The Chicago-based company has previously said it had been unable to complete the filings due to internal control failures stemming from accounting problems and a software tool.

Last month, Veradigm reported that Nasdaq had determined it wouldn’t delist the company from the exchange as long as it complies with the reporting requirements by late February and meets other interim milestones.

The firm also asked for and received the resignations of its former CEO and CFO in December as it works to build “a stronger financial control environment with enhanced financial reporting policies.”