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HSS Acquires eHealthFIRST

HSS, Inc., which specializes in the development and use of software and e-commerce solutions for managing coding, reimbursement and compliance in the healthcare marketplace, has acquired Columbia, MD-based eHealthFIRST, whose primary product, Hospital INSIGHT, provides hospital and IDN customers with a Web-based means to benchmark provider performance in the areas of compliance, reimbursement and outcomes.

Financial terms of the deal were not disclosed.

With clients including Quorum Health and Vanguard Health Management, eHealthFIRST is an information and analytical services company that delivers market research and performance information to healthcare providers, assisting them in identifying clinical and financial performance improvement opportunities.

"The acquisition of eHealthFIRST is a major milestone in the evolution of HSS that exemplifies our strategic growth strategy, focusing on expansion beyond our market niche while remaining within a set of core competencies in healthcare measurement and management solutions," said Bob Leary, chief executive officer of the Hamden, Conn.-based HSS. "As a result of select strategic acquisitions that broaden the scope of our products, as well as internal development of customer-centric offerings, HSS has realized greater than 50 percent compounded annual growth rate (CAGR) over the past three years."

Earlier this year, HSS also acquired E-Med Solutions, Inc. of San Francisco, Calif., an application service provider (ASP) that delivers physician payment, compensation and reporting solutions to healthcare payers.

HSS will extend Hospital INSIGHT's provider-focused tools to the managed care organization (MCO) market, allowing payers as well as providers to evaluate the performance of individual facilities in relation to a variety of peer groups, including user-defined reference sets. HSS will leverage Hospital INSIGHT's ability to offer a "quick snapshot" of hospital performance in order to provide managed care customers with a valuable new tool for assessing market opportunities.

"While Hospital INSIGHT dovetails perfectly with our desktop products, it also gives HSS an opportunity to move aggressively into the e-health information market. It is the perfect vehicle for the delivery of severity adjusted benchmarks using our APS-DRG methodology," said Leary. "The opportunities to cross-sell existing customers of both companies are extraordinary since our collective client base -- managed care organizations, hospitals and IDNs -- can all benefit from the breadth and depth of HSS' growing compliance, reimbursement and outcomes product offering."