Innovaccer is using its fifth acquisition in two years to move deeper into one of healthcare’s most expensive administrative problems. The healthtech unicorn has acquired medical billing company CaduceusHealth for about $66 million, adding revenue cycle management capabilities to its healthcare data platform.
CaduceusHealth works with about 4,000 U.S. healthcare providers and handles nearly $5 billion in annual medical billing, according to The Economic Times. The acquisition will also add nearly 200 employees to Innovaccer as the company expands beyond clinical data infrastructure into more of the financial and administrative workflows behind care delivery.
Founded in 2014, Innovaccer helps healthcare organizations bring data from legacy systems into a centralized cloud platform to support care coordination and operations. With CaduceusHealth, the company is adding a revenue cycle management business that touches billing, claims, and other administrative processes that remain a major cost burden for providers.
Innovaccer plans to integrate CaduceusHealth into its Flow platform as it builds more AI tools for healthcare administration. The company has said autonomous agents could help automate parts of billing and back-office workflows tied to patient care.
The deal reflects Innovaccer’s broader push to use data and AI to reduce administrative friction in U.S. healthcare. “The administrative spend alone in the U.S. is larger than the total healthcare spend of any other country in the world,” co-founder Abhinav Shashank told The Economic Times.
