- Machinify solution seeks to accelerate the efficiency,
quality, and clinical value of Evolent's specialty condition
management platform through AI-enabled clinical workflow
automation
- Machinify technology leverages the latest advances in
applied machine learning, large language models and data
analytics
- Acquisition expected to benefit health plans, clinicians,
and members
WASHINGTON, June 4, 2024
/PRNewswire/ -- Evolent Health, Inc. ("Evolent" or "the Company"),
(NYSE: EVH) a company focused on achieving better health outcomes
for people with complex conditions, today announced it has entered
into an agreement to acquire certain assets of Machinify and the
exclusive, perpetual and royalty-free license of Machinify
Auth, a proven software platform that leverages the latest
advances in artificial intelligence to increase the clinical
quality, speed and consistency of the clinical reviews for all
specialty conditions. Evolent plans to integrate the Machinify Auth
team, software applications and AI capabilities into its leading
platform. Evolent and Machinify will also enter into a multi-year
services agreement to support the success of the acquisition.
Evolent believes the acquisition will add significant value for
Machinify and Evolent's health plans, providers and members. The
acquisition is subject to customary closing conditions.
Evolent believes the addition of scalable AI technology will
enable the Company to leapfrog standard industry processes by
increasing the number of first-pass approvals as well as
streamlining manual data collection and analysis associated with
complex medical decision making. Such manual transactions can be
time intensive and require clinical staff to read, search,
identify, and synthesize key data from extensive medical record
histories during case reviews. The solution to be acquired,
Machinify Auth, functions as a co-pilot for nurses and doctors and
brings a proven track record of reducing clinician workforce time
by an average of 55% for complex, manual reviews for a large
national payer customer and its provider network. With this
capability, Evolent clinicians will be able to spend more time
guiding providers to higher-value choices, strengthening the
Company's core value proposition of higher quality outcomes and
cost savings, while also reducing administrative burden for
providers and members.
"The acquisition of Machinify Auth will create an incredibly
powerful opportunity for Evolent and for our client base of
approximately 70 health plans," stated Seth
Blackley, Co-Founder and Chief Executive Officer of Evolent.
"Machinify has built a proven AI business that currently reviews
over $200 billion in medical claims
annually. The acquired assets consist of developers and
proprietary, scalable software code as well as existing client
relationships that fit with our product strategy at Evolent.
Further, we believe by embedding Machinify technology into our
platform and wrapping it with broader condition management services
we can unlock additional value for health plans, providers, and
members. Finally, this solution will allow Evolent, on a SaaS basis
initially, to support value-based condition management and provider
engagement across all specialties, not just for our three focus
areas of oncology, cardiology and musculoskeletal care."
"We founded Machinify to bring innovation to health care and to
leverage healthcare data at scale to drive down costs and improve
outcomes," said Prasanna Ganesan,
Founder and Chief Executive Officer of Machinify. "Evolent shares
our vision for fundamental process transformation through the use
of advanced technology. We are excited to partner with them to pair
Machinify's pioneering AI platform with Evolent's considerable
industry-leading solutions and footprint across the payer
landscape."
Machinify is a privately held company based in Palo Alto, California. Upon closing, Evolent
will be acquiring certain assets and the exclusive license to the
Machinify Auth platform. In addition, certain employees of
Machinify will be re-badged as Evolent employees upon closing.
Lastly, Machinify and Evolent expect to enter into a long-term
services agreement at closing to support the development and
integration of the platform with Evolent. The acquisition is
immaterial to Evolent's revenue outlook and is estimated to be
neutral to Adjusted EBITDA in the first year after closing. This
transaction is anticipated to close in the third quarter of
2024.
About Evolent
Evolent (NYSE: EVH) specializes in
better health outcomes for people with complex conditions through
proven solutions that make healthcare simpler and more affordable.
Evolent serves a national base of leading payers and providers and
is consistently recognized as a top place to work in healthcare
nationally. Learn more about how Evolent is changing the way
healthcare is delivered by visiting evolent.com.
About Machinify
Machinify is transforming healthcare
administration with AI. The company serves payers of all sizes with
over 50 million active lives today. The company is headquartered in
Palo Alto and is backed by Battery
Ventures, Matrix Partners, and GV. Go to www.machinify.com to learn
more about how Machinify is transforming healthcare administration
with AI.
Investors: Seth R. Frank,
sfrank@evolent.com
Media: Jamie Manfuso,
media@evolent.com
Forward-Looking Statements - Cautionary Language
Certain statements made in this release and in other written or
oral statements made by us or on our behalf are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 (the "PSLRA"). A forward-looking statement is a
statement that is not a historical fact and, without limitation,
includes any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain
words like: "believe," "anticipate," "expect," "estimate," "aim,"
"predict," "potential," "continue," "plan," "project," "will,"
"should," "shall," "may," "might" and other words or phrases with
similar meaning in connection with a discussion of future operating
or financial performance. In particular, these include statements
relating to future actions, our business outlook and future
performance, including our ability to integrate Machinify into our
operations, the expected benefits of the Machinify acquisition, and
the expected timing for the closing of the Machinify acquisition.
We claim the protection afforded by the safe harbor for
forward-looking statements provided by the PSLRA. These statements
are only predictions based on our current expectations and
projections about future events. Forward-looking statements involve
risks and uncertainties that may cause actual results, level of
activity, performance or achievements to differ materially from the
results contained in the forward-looking statements. Although we
believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
level of activity, performance or achievements. Our Annual Report
on Form 10-K for the year ended December 31,
2023, and other documents filed with the SEC include risk
factors that could affect our businesses and financial performance.
Moreover, we operate in a rapidly changing and competitive
environment. New risk factors emerge from time to time, and it is
not possible for management to predict all such risk factors.
Further, it is not possible to assess the effect of all risk
factors on our businesses or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. In addition, we disclaim any obligation to update
any forward-looking statements to reflect events or circumstances
that occur after the date of this release.
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SOURCE Evolent Health