TailorMed, a platform that allows healthcare providers to manage their finances, check health plans and estimate out-of-pocket costs for uninsured patients, has acquired fellow financial management company Vivor.

TailorMed’s tool also automates the process of identifying patients who may need financial assistance and connects them with resources like government subsidies and programs, co-pay assistance, community and state programs, and other financial help options. The company said it works with 900 healthcare facilities and providers. 

“Joining forces with TailorMed unlocks the opportunity to make a bigger impact for patients,” Ian Manners, CEO and cofounder of Vivor, said in a statement. As part of the acquisition, he will join TailorMed as chief strategy officer and head of life sciences.

“As we grow together, we will create more innovative solutions for our combined network. This will enable us to reach more patients throughout their treatment journey.”

WHY IT MATTERS

The companies are pitching their acquisition as a way to reduce healthcare costs for patients and improve providers’ financial performance.

Healthcare and insurance costs are on the rise. In 2021, annual premiums for employer-sponsored family health plans reached $22,221, up 4% from last year, according to a recent report by the Kaiser Family Foundation. On average, employees paid $5,969 toward their plan. 

Research published in JAMA this summer found nearly 18% of people in the U.S. had medical debt in collections in June 2020.

“Both organizations started their journeys with the shared mission of tackling the financial challenges of healthcare,” Srulik Dvorsky, CEO and cofounder of TailorMed, said in a statement. “With increasing urgency to proactively address rising treatment costs, now is the right time to come together. With our unmatched commitment, platform, and network, we’ll lead the way in removing financial barriers to care across the country like no other company can.”

THE LARGER TREND

In September, TailorMed extended its latest round of funding, initially announced in the summer, to $25 million. 

Other companies aiming to improve the revenue cycle for providers include Rivet Health, which raised $8.25 million in March 2020 and private practice-focused Gentem Health, which raised $10 million earlier this year. 

On the patient-engagement side, MedPilot raised $1.5 million in February 2020 and was acquired by Vytalize Health this year.