HEALWELL to acquire Intrahealth to create AI EHR
January 31, 2024
TORONTO – HEALWELL AI Inc., a healthcare technology company focused on AI and data science for preventative care, is pleased to announce that it has entered into an agreement to acquire Intrahealth Systems Limited, a subsidiary of WELL Health Technologies Corp. for approximately $24.2 million.
A majority of the cost is expected to be paid in HEALWELL Class A subordinate voting shares.
Intrahealth is an advanced SaaS-based Electronic Health Records management platform for small and medium enterprise healthcare organizations across Canada, Australia, and New Zealand.
Intrahealth’s robust platform meets the demands of a wide range of clients from a single doctor’s office to a multi-thousand user health institution. Founded in New Zealand and headquartered in Vancouver, B.C., Intrahealth was originally acquired by WELL in April 2021.
Dr. Alexander Dobranowski (pictured), CEO of HEALWELL, commented on the acquisition, “Our firm belief is that the future of healthcare will be centered around AI enabled EHRs due to the enormous potential scope to positively impact healthcare providers and their patients.
“EHR systems that are not outfitted with AI capabilities either natively or through an AI powered clinical decision support system will not be able to retain their customers in the future. This presents an enormous market opportunity for companies such as HEALWELL who have the technology to drive this industry forward.”
Hamed Shahbazi, founder and CEO of WELL stated, “When Intrahealth was acquired by WELL nearly three years ago, the intent was to enable Intrahealth to grow and expand. We achieved that goal and now Intrahealth enters the next stage of its development which we feel will be best achieved through pairing it more deeply with the HEALWELL platform. We believe the combination of HEALWELL’s best-in-class AI capabilities combined with Intrahealth’s EHR platform will result in the creation of one of the industry’s first AI powered EHR platform with next-generation clinical decision support capabilities that will provide patients and providers with powerful tools to drive better health outcomes at lower costs in a manner aligned with global Value Based Care trends. Given that we are a significant stakeholder in HEALWELL, we are excited about the value creation possibilities that will accrue as a result of HEALWELL and Intrahealth combining and effectively building the ultimate AI co-pilot for physicians.”
Intrahealth supports approximately 15,000 healthcare professionals across its global network. In 2024, it is expected that Intrahealth will generate more than $12 million in revenues, achieve over 80% gross margins, produce positive EBITDA and increased cashflows. Approximately 70% of Intrahealth’s revenue is generated in Canada and over 80% of its revenue is high margin recurring revenue.
Dorian Prior, president of Intrahealth commented, “Our talented multi-national team at Intrahealth is thrilled to join HEALWELL at such an exciting time in their development as a company; we’re looking forward to integrating Intrahealth’s products with HEALWELL’s cutting-edge AI technologies. The future of healthcare will unquestionably involve AI and we feel fortunate to have an opportunity to be at the forefront of the future of our industry. This comes at a great time where we have never had a better pipeline of growth opportunities.”
Intrahealth is engaged in the business of providing a suite of flexible software solutions to a wide variety of customers including health authorities, hospitals, public health outpatient centres, community health, home care, ambulatory care, and diverse healthcare professionals.
Intrahealth provides highly configurable software solutions that also support mobile platforms and seamless access to virtual care/telehealth solutions. Intrahealth’s solutions for hospitals include patient administration systems, bed management, waiting list management, enterprise-wide scheduling, case management, medication management, emergency room operations and ward management, among many other features.