VitalHub to acquire MedCurrent for $34 million

TORONTO – VitalHub Corp. announced an agreement to acquire MedCurrent Corporation and its subsidiaries. MedCurrent is a physician-founded Clinical Decision Support (CDS) company focused on improving the quality of care and managing health system costs through its scalable solution, OrderWise.

OrderWise enhances the clinical decision-making process to determine the appropriateness of a test using evidence-based guidelines and artificial intelligence (AI) integrated at the point of care.

To date, the development of OrderWise has been primarily focused on improving appropriateness of orders for medical imaging tests. MedCurrent provides its solutions in over 80 customer installations in Canada, the United Kingdom, the United States of America, and Australia.

“We are thrilled to join forces with VitalHub, a company that shares our commitment to improving healthcare through innovation. This partnership will allow us to accelerate the development and deployment of our solutions, reaching more healthcare providers and patients worldwide,” said Dr. Steve Herman (pictured), founder and CEO of MedCurrent.

VitalHub has agreed to acquire MedCurrent for total consideration of up to approximately $34 million (assuming all earn-outs are achieved), including a cash payment of approximately $12 million on closing (which amount is subject to customary working capital adjustments and other similar closing adjustments), and additional earn-out consideration up to a maximum of approximately $21.875 million) based on annual performance over 36 months.

Hospital diagnostics, including medical imaging and laboratory testing, are critical components of healthcare delivery, accounting for a sizable portion of hospital expenditures. In Canada alone, hospitals spend over $3 billion annually on medical imaging and $5.9 billion on laboratory testing.

Addressing inefficiencies and improving appropriateness in these areas is essential to reducing costs and enhancing patient outcomes. The Conference Board of Canada estimates that in 2022, average wait times were 67 days for a CT scan and 133 days for an MRI, significantly exceeding the acceptable 30-day standard.

These delays result in a net loss of $3.5 billion in GDP annually. Additionally, up to 30% of certain medical tests, procedures, and treatments are potentially unnecessary, according to the Canadian Institute for Health Information (CIHI). By integrating MedCurrent’s CDS solutions, VitalHub aims to reduce these inefficiencies, with a view to lowering healthcare costs and improving patient care.

VitalHub’s acquisition of MedCurrent aligns with VitalHub’s strategic vision to integrate cutting-edge technology solutions that streamline healthcare delivery. MedCurrent’s OrderWise platform, focused on optimizing diagnostic orders, will complement VitalHub’s existing Patient Flow software suite, providing a comprehensive solution to manage healthcare resources more effectively.

“This acquisition represents a significant step forward in our mission to enhance healthcare delivery through technology,” said Dan Matlow, CEO of VitalHub. “MedCurrent’s unique CDS software addresses a clear and critical need in the healthcare system. By integrating MedCurrent’s solutions with our existing offerings, we believe that we can significantly reduce unnecessary tests and procedures, ultimately lowering costs and improving patient care. We are excited about the potential to expand MedCurrent’s reach internationally and enhance our collective impact on global healthcare systems.”

About MedCurrent Corporation
Headquartered in Toronto, MedCurrent Corporation is focused on improving the quality of care and managing health system costs through its innovative Clinical Decision Support (CDS) platform, enabling real-time, evidence-based guidelines integrated at the point of care to improve health and healthcare delivery. MedCurrent serves 80+ organizations throughout Canada, the United Kingdom, the United States of America, and Australia with its 15 team members based in Canada and the United Kingdom.

About VitalHub
VitalHub is a leading software company dedicated to empowering Health and Human Services providers. Its clients include hospitals, regional health authorities, mental health and addictions services providers for children and adults, long-term care facilities, home health agencies, correctional services, and community and social services providers. VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The VitalHub team comprises more than 400 team members globally. For more information, visit https://www.vitalhub.com/