Evolent signs agreement to acquire artificial intelligence utilization management products and team from Machinify
Evolent Health (EVH) has announced an agreement to acquire certain assets and an exclusive license for Machinify Auth, a proven AI software platform.
This acquisition aims to enhance Evolent's specialty condition management platform through AI-enabled clinical workflow automation.
Machinify's technology uses machine learning, large language models, and data analytics to improve clinical quality, speed, and consistency.
Expected benefits include increased first-pass approvals, streamlined data collection, and reduced clinician workforce time by 55%.
The acquisition, deemed neutral to Adjusted EBITDA in the first year, is expected to close in Q3 2024.
- Acquisition of proven AI technology from Machinify, enhancing clinical workflow automation.
- Expected reduction in clinician workload by 55%, increasing efficiency.
- Potential increase in first-pass approvals, improving operational speed.
- Integration of scalable AI tech into Evolent's existing platform.
- Multi-year services agreement to support the acquisition's success.
- Neutral impact on Adjusted EBITDA in the first year.
- Alignment with Evolent's focus on value-based condition management across multiple specialties.
- Acquisition is immaterial to Evolent's revenue outlook.
- Potential risks related to integration and implementation of new technology.
- Dependence on successful collaboration between Evolent and Machinify post-acquisition.
Insights
The acquisition of Machinify's AI assets by Evolent Health is a strategic move with potential long-term benefits. Financially, while the transaction is immaterial to Evolent's revenue outlook and estimated to be neutral to Adjusted EBITDA in the first year, it positions the company for future growth. By integrating Machinify's advanced AI technology, Evolent can enhance operational efficiencies and reduce costs associated with manual data processing. This could result in higher profit margins over time. Moreover, the acquisition aligns with Evolent's value-based care model, which aims to improve patient outcomes while controlling costs. This strategic alignment could attract new clients and retain existing ones, ultimately boosting Evolent's market share.
The integration of Machinify’s AI technology into Evolent’s platform represents a significant advancement in healthcare technology. The use of large language models and applied machine learning to automate clinical workflows can drastically reduce the time and effort required by clinicians for complex medical reviews. The 55% reduction in clinician workforce time for manual reviews is a clear indicator of the efficiency gains to be expected. Additionally, the ability of the AI to increase the number of first-pass approvals is particularly noteworthy as it implies a more streamlined and efficient process, minimizing delays in patient care. This technological edge could differentiate Evolent from its competitors, providing a unique value proposition to health plans and providers.
From a market perspective, the acquisition of Machinify's assets by Evolent Health can be seen as a strategic effort to solidify its position in the competitive healthcare technology space. The integration of AI-powered solutions into Evolent’s platform aligns with current industry trends that emphasize automation and data-driven decision-making. This move is likely to resonate well with health plans and providers who are increasingly looking for solutions that offer both efficiency and improved patient outcomes. Furthermore, Evolent’s existing client base of approximately 70 health plans provides a ready market for these advanced solutions, potentially accelerating the adoption and integration of Machinify’s technology. This could lead to heightened client satisfaction and loyalty, thereby positively impacting Evolent’s market positioning.
- Machinify solution seeks to accelerate the efficiency, quality, and clinical value of Evolent's specialty condition management platform through AI-enabled clinical workflow automation
- Machinify technology leverages the latest advances in applied machine learning, large language models and data analytics
- Acquisition expected to benefit health plans, clinicians, and members
Evolent believes the addition of scalable AI technology will enable the Company to leapfrog standard industry processes by increasing the number of first-pass approvals as well as streamlining manual data collection and analysis associated with complex medical decision making. Such manual transactions can be time intensive and require clinical staff to read, search, identify, and synthesize key data from extensive medical record histories during case reviews. The solution to be acquired, Machinify Auth, functions as a co-pilot for nurses and doctors and brings a proven track record of reducing clinician workforce time by an average of
"The acquisition of Machinify Auth will create an incredibly powerful opportunity for Evolent and for our client base of approximately 70 health plans," stated Seth Blackley, Co-Founder and Chief Executive Officer of Evolent. "Machinify has built a proven AI business that currently reviews over
"We founded Machinify to bring innovation to health care and to leverage healthcare data at scale to drive down costs and improve outcomes," said Prasanna Ganesan, Founder and Chief Executive Officer of Machinify. "Evolent shares our vision for fundamental process transformation through the use of advanced technology. We are excited to partner with them to pair Machinify's pioneering AI platform with Evolent's considerable industry-leading solutions and footprint across the payer landscape."
Machinify is a privately held company based in
About Evolent
Evolent (NYSE: EVH) specializes in better health outcomes for people with complex conditions through proven solutions that make healthcare simpler and more affordable. Evolent serves a national base of leading payers and providers and is consistently recognized as a top place to work in healthcare nationally. Learn more about how Evolent is changing the way healthcare is delivered by visiting evolent.com.
About Machinify
Machinify is transforming healthcare administration with AI. The company serves payers of all sizes with over 50 million active lives today. The company is headquartered in
Investors: Seth R. Frank, sfrank@evolent.com
Media: Jamie Manfuso, media@evolent.com
Forward-Looking Statements - Cautionary Language
Certain statements made in this release and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," "aim," "predict," "potential," "continue," "plan," "project," "will," "should," "shall," "may," "might" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, our business outlook and future performance, including our ability to integrate Machinify into our operations, the expected benefits of the Machinify acquisition, and the expected timing for the closing of the Machinify acquisition. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA. These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements involve risks and uncertainties that may cause actual results, level of activity, performance or achievements to differ materially from the results contained in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Our Annual Report on Form 10-K for the year ended December 31, 2023, and other documents filed with the SEC include risk factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors. Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this release.
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SOURCE Evolent Health
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