The deal creates a $1 billion company focused on AI-powered hospital operations, helping clients address capacity management and healthcare staffing shortages.
LeanTaaS on Tuesday announced its acquisition of Hospital IQ. Terms of the deal were not disclosed, but the two firms say by merging they’ll create a $1 billion enterprise focused on artificial intelligence-driven operations at more than 180 U.S. health systems.
WHY IT MATTERS
LeanTaaS provides predictive analytics to address capacity management and other operational needs for operating rooms and infusion centers in 150 health systems and 500 hospitals in 43 states.
Hospital IQ, which has partnerships with multiple technology providers including Oracle Cerner, Altera Digital Health (formerly part of Allscripts) and Siemens Healthineers, provides workflow
automation and workforce management.
“We’re at a crucial tipping point where health systems across the nation are struggling with the lingering effects of COVID-19 and endemic staffing challenges,” said Steve Hess, chief information officer of UCHealth, in the announcement.
UCHealth is a strategic partner and an early investor in LeanTaaS.
“There’s certainly a market demand for these solutions, and I’m looking forward to seeing how the combined team will accelerate a new wave of AI-powered innovations to transform hospital operations,” said Hess.
LeanTaaS and Hospital IQ say they can improve performance by driving improved patient access, staff satisfaction and revenue productivity across multiple departments.
THE LARGER TREND
Across the country hospitals are trying to figure out how to expand or optimize their spaces and processes in order to meet growing care demands.
With AI-powered analytics and tools, healthcare systems can help streamline common workflow challenges.
For example, after implementing a queue management tool for inpatient beds from LeanTaaS, UCHealth saw a 37% reduction in time to complete ICU transfers, a 4% decrease in time to admit and a 90% improved confidence in critical capacity decisions.
Analytics can help break down hospital-wide summaries for a variety of staff and providers to use.
“Staff can quickly see, at any time and from any location, capacity status, as well as which units are performing strongly with discharges and which are falling behind and need more focused support from staff to decrease delays,” Hess told Healthcare IT News in 2021.
ON THE RECORD
“The strategic combination of LeanTaaS and Hospital IQ unites the two best companies in hospital operations at a time of profound industry need,” said Mohan Giridharadas, LeanTaaS founder and CEO, in a statement. “Every health system in the country has an urgent need to improve the utilization of both staff and assets to improve patient access.”