Machinify, a healthcare data company, closed its acquisition of Performant Healthcare for around $670 million to expand its AI-powered platform to a broader range of organizations, including government programs.
Private equity firm New Mountain Capital bought Machinify earlier this year, following its merger of The Rawlings Group, Apixio’s Payment Integrity business and Varis last fall. The PE firm then combined Machinify with those three health tech companies to take on AI-powered payment integrity.
Machinify developed a software platform that streamlines healthcare payments with artificial intelligence and the company's technology is deployed by over 75 health plans, representing more than 170 million lives.
Performant Healthcare tackles healthcare payment integrity. With the addition of Performant, Machinify says it now supports hundreds of millions of claims annually and delivers billions in savings through its unified AI and human-expertise model, helping clients reduce waste, improve provider relationships and ensure accuracy from contracts to claims.
The deal combines Performant’s "deep audit and recovery expertise with Machinify’s advanced AI platform" to enable the company to deliver faster, more accurate insights, further reduce administrative burden and unlock greater savings for health plans, the company said in a press release. The integration enhances Machinify’s ability to serve both commercial and government payers with end-to-end intelligence, spanning claim error detection, prevention, recovery and coordination of benefits.
Performant CEO Simeon Kohl will remain with the company, joining the Machinify leadership team.
“Performant strengthens Machinify’s leadership as the next-generation platform for payment accuracy and intelligence,” said Matt Holt, Managing Director and President of Private Equity at New Mountain Capital, said in a statement. “This strategic integration aligns with Machinify’s mission to make payments smarter, faster, and more transparent. We’re excited about the significant value it will unlock for payers, providers, and the entire healthcare ecosystem.”