Phreesia Announces Acquisition of Insignia Health, LLC, Redoubling Its Commitment to Improve Patients’ Experience and Outcomes

Rhea-AI Summary

Phreesia has acquired Insignia Health, LLC, a company focused on improving health outcomes through patient activation. This acquisition enhances Phreesia's mission to empower patients in their healthcare journey. Insignia holds the exclusive license for the Patient Activation Measure® (PAM®), recognized as the gold standard for assessing patient activation. The integration is expected to broaden PAM's reach, improving patient engagement and outcomes. Phreesia aims to leverage Insignia's expertise to provide more personalized care.

Positive

• Acquisition of Insignia Health enhances Phreesia's patient engagement capabilities.
• Insignia's PAM is recognized as the gold standard, supported by extensive research.
• The deal is expected to broaden PAM's reach and improve healthcare outcomes.

Negative

• Potential integration challenges could impact the realization of expected benefits.
• Forward-looking statements indicate risks associated with achieving anticipated outcomes.

RALEIGH, N.C.--(BUSINESS WIRE)-- Phreesia is excited to announce it has acquired Insignia Health, LLC, a founder-led and mission-oriented company dedicated to improving health outcomes through patient activation. The acquisition is a natural extension of Phreesia’s commitment to enabling patients to become more active participants in their care.

“Phreesia’s core strength is putting tools in the hands of patients to take on tasks—from self-reporting data like social determinants of health to making payments to signing consent forms—that they can do better than anyone else, and that align with the convenient digital experience they want,” said Phreesia’s CEO Chaim Indig. “We’ve long admired Insignia’s expertise in understanding and activating patients, and we believe this acquisition will help us deliver on our mission to create a better, more engaging healthcare experience.”

Phreesia acquired Insignia from its co-founders, Chris Delaney and Craig Swanson, the University of Oregon and its other holders of membership interest. Insignia has an exclusive worldwide license for the Patient Activation Measure® (PAM®), which was created by a team of researchers at the University of Oregon led by Dr. Judith Hibbard, who has joined Phreesia in an advisory role.

PAM is widely viewed as the gold standard of patient activation measures, supported by more than 700 peer-reviewed studies published in leading healthcare journals over the past 17 years. The research validates that the brief PAM survey can accurately measure a patient’s level of “activation”—their knowledge, skills and confidence for self-management—and can lead to improved health outcomes, higher patient satisfaction and lower cost of care. PAM results are used to improve risk identification, guide patient support and evaluate impact as a patient-reported outcome measure (PROM).

“When we first created PAM, we wanted to provide clinicians with a tool to quickly and easily understand a patient’s ability to self-manage their healthcare, so they could individualize their approach and better engage their patients through tailored, incremental changes,” said Dr. Judith Hibbard, Professor Emerita and Faculty Fellow at the University of Oregon’s Health Policy Research Group. “The subsequent years of research have revealed the essential role that activation plays in determining outcomes for patients. Studies also showed us how the measure can be used to help clinical teams change the health and cost trajectory for patients. It is very exciting to have the opportunity to implement the measure and the related intervention approaches at a scale we had always hoped for.”

PAM is the only measure of patient activation to receive an endorsement by the National Quality Forum (NQF), and the only one to be utilized by the U.S. Centers for Medicare and Medicaid Services (CMS) and England’s National Health Service (NHS) beginning in 2019 and 2017, respectively.

“Phreesia’s expertise in empowering patients to gain more control over their health and care experience through technology was hugely appealing to us,” said Chris Delaney, co-founder of Insignia Health. “The number of patients we can reach in a single week through Phreesia’s platform would otherwise take us months. We’re thrilled with this opportunity to dramatically expand PAM’s reach and to help so many more patients become more successful managers of their health.”

With PAM and related activation-based coaching and patient education solutions, we believe Insignia brings to Phreesia a proprietary and universally accepted model that will enable Phreesia and its provider clients to understand and engage patients in more personalized ways based on their level of activation.

Forward-looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, our ability to realize the anticipated benefits of the Insignia acquisition when expected or at all; difficulties and delays in integrating Insignia’s business; changes in laws and regulations applicable to our business model; changes in market conditions and receptivity to our products and services; our ability to effectively manage our anticipated growth; the impact of the COVID-19 pandemic on our business; and our ability to attract, retain and cross-sell to healthcare provider clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including, without limitation, those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended January 31, 2021, as updated by our subsequently filed Quarterly Reports on Form 10-Q, and our other SEC Filings. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

About Phreesia

Phreesia gives healthcare organizations a suite of robust applications to manage the patient intake process. Our innovative SaaS platform engages patients in their healthcare and provides a modern, convenient experience, while enabling our clients to enhance clinical care and drive efficiency.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211213005179/en/

Annie Harris

aharris@phreesia.com

929-526-2611

Source: Phreesia

FAQ

What is the significance of Phreesia's acquisition of Insignia Health?

The acquisition bolsters Phreesia's ability to engage patients through established measures like the Patient Activation Measure, aiming for improved healthcare outcomes.

What does the Patient Activation Measure (PAM) do?

PAM measures patients' knowledge, skills, and confidence in self-management, linked to better health outcomes and patient satisfaction.

How might the Insignia acquisition affect Phreesia's stock performance?

The successful integration of Insignia could enhance Phreesia's market position and lead to improved financial performance, positively impacting its stock.

When was the acquisition of Insignia Health by Phreesia announced?

The acquisition was announced on December 13, 2021.

What are the forward-looking risks mentioned in the press release?

Risks include integration challenges and uncertainties regarding market conditions and the ability to achieve expected benefits from the acquisition.