UnitedHealth to Acquire A-Life, San Diego Maker of Software
UnitedHealth Group Inc. said it will buy A-Life Medical Inc., a closely held maker of medical- coding software, in its fourth purchase this year of a company focused on helping doctors and hospitals reduce costs.
A-Life assists more than 40,000 U.S. physicians with billing, processing more than 5 million transactions monthly, Minnetonka, Minnesota-based UnitedHealth, the biggest U.S. health plan by sales, said in a statement today. Terms weren’t disclosed. A-Life, based in San Diego, will join Ingenix, UnitedHealth’s health-technology and consulting unit.
UnitedHealth is expanding beyond health benefits to serve hospitals, physicians and employers coping with rising medical costs and declining pay from government insurance programs, Chief Executive Stephen Hemsley said during a July 21 conference call. The insurer has announced deals since July for a hospital- consulting company, a software vendor for emergency rooms, and a maker of computer networks to share medical records.
“Even as the volume of medical claims grows, health care providers face increasing pressure to reduce administrative costs,” said Bill Miller, an executive vice-president at Ingenix, in the statement. “These challenges will become more acute as 30 million more Americans obtain health insurance because of health-care reform, and as regulatory requirements such as the transition to the ICD-10 coding system come into effect.”
A-Life generated $17.1 million in revenue in 2009, up from $8.8 million three years earlier, Inc. magazine said on Aug. 24 in its annual list of the fastest-growing U.S. companies. The magazine said the figures were reported by the company.
UnitedHealth rose 33 cents, or less than a percent, to $35.26 at 4 p.m. in New York Stock Exchange composite trading, before the company’s announcement. The shares have risen 23 percent in 12 months.
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