WASHINGTON - Evolent Health, Inc. (NYSE: NYSE:EVH), a healthcare company focused on improving outcomes for complex conditions, announced today its agreement to acquire key assets from Machinify, including a software platform that enhances clinical reviews with artificial intelligence (AI). The deal, expected to close in the third quarter of 2024, hinges on standard closing conditions.
The acquisition targets Machinify Auth, AI software that aids in clinical decision-making by automating workflows and data analysis, potentially reducing clinician review time by 55% as evidenced in a large national payer customer. Evolent aims to incorporate Machinify Auth into its platform to improve first-pass approval rates and reduce administrative burdens.
Evolent's CEO, Seth Blackley, expressed that integrating Machinify's technology and team is a strategic enhancement to their platform, anticipating benefits for health plans, providers, and members. The move is designed to bolster Evolent's services across all specialties, beyond its primary focus areas of oncology, cardiology, and musculoskeletal care.
Prasanna Ganesan, CEO of Machinify, noted alignment with Evolent's vision for healthcare process transformation through advanced technology. The partnership is expected to leverage Machinify's AI platform and Evolent's industry solutions to serve approximately 70 health plans.
Machinify, located in Palo Alto, California, will see some of its employees transition to Evolent upon closing the deal. Additionally, both companies anticipate a long-term services agreement to support the platform's development and integration.
This news is based on a press release statement.
InvestingPro Insights
Evolent Health, Inc. (NYSE: EVH) continues to make strategic moves with its latest acquisition aimed at leveraging artificial intelligence to streamline healthcare administration. As the company integrates innovative technology, investors and stakeholders are closely monitoring its financial health and market performance.
According to InvestingPro data, Evolent Health currently has a market capitalization of $2.41 billion. The company's aggressive growth strategy is reflected in its significant revenue growth, which was 46.76% over the last twelve months as of Q1 2024. Despite this, Evolent's stock has experienced considerable volatility recently, with a 22.36% decline in the last month and a 39.4% drop over the last three months, indicating potential concerns among investors.
Two key InvestingPro Tips for Evolent Health include an expectation for net income growth this year, which may signal a positive outlook for the company's profitability. Additionally, the stock is currently trading near its 52-week low and is considered to be in oversold territory according to the Relative Strength Index (RSI), suggesting that it might be undervalued and could present a buying opportunity for investors.
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With the acquisition of Machinify's assets, Evolent Health is poised to solidify its position in the healthcare sector. Investors will be keen to see how these strategic initiatives translate into financial performance and market valuation in the coming periods.
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