Premier Acquires Health Design Plus

An agreement was announced this morning for University Hospitals to sell its Health Design Plus (HDP) business to Premier.

This transaction is not expected to result in material change for HDP clients, but opens new opportunities for greater collaboration. HDP is fully committed to the continued support and growth of all current service lines. Employer clients, medical center partners and other key business partners will continue to be supported by the same HDP teams as they are today. 

In addition, HDP clients also will have an opportunity to engage Premier for additional expertise and technology solutions that have consistently been leveraged to unlock significant added value among its health system members. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier plays a critical role in the rapidly evolving healthcare industry, partnering with its health system members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.

In November 2019, Premier launched an effort to enable collaboration between health systems and employers, while arming clinicians with new tools to help improve patient outcomes. Contigo Health™ will empower health systems to focus on what employers care about most: offering access to high quality care, helping to improve employee productivity, increasing employee engagement and controlling costs.

HDP provides specialized third-party administrator (TPA) services that will support Contigo Health as it expands its product line in multiple markets with multiple employers. This transaction will also enhance and expand employer-focused products by scaling the ECEN™ Center of Excellence (COE) program, bundling pricing of care episodes for employers and providing capability enhancements for employee benefit plans. HDP has the back-end infrastructure to support all currently contemplated and planned product offerings of Contigo Health.

Helping self-funded employers identify ways to work with health systems and more effectively manage their workforces’ healthcare costs has become an integral component of the new organization’s solutions. As the cost of healthcare for employers continues to rise and the pressure to control those costs continues to increase, we believe employers will continue to focus on healthcare expense and outcomes as a critical component of their overall cost and quality management strategy.

As part of the transaction:

  • HDP and Contigo Health will combine to form a single organization. 
  • HDP employees will continue in their current roles and are expected to become employees of the combined HDP and Contigo Health organization upon the transaction closing.
  • The leadership of HDP will continue to hold significant roles in the company after the transaction is complete.
  • John Strickland will become Chief Technology Officer of the combined Contigo Health and HDP organization.
  • Steven Nelson will be president of the combined Contigo Health and HDP organization.

HDP and Contigo Health representatives will contact each HDP client in the next few days to answer any questions you may have about this transaction. If you have any questions in the meantime, please contact Britt Hayes (330-388-5375 or Bhayes@hdplus.com) or Steven Nelson (412-225-1359 or steven.nelson@contigohealth.com).

The Premier team is excited about this news, but even more excited about partnering with each of you and the opportunities ahead.