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When the acquisition is complete, the companies will offer the only complete financial technology platform in healthcare.
Healthcare financial platform Cedar will acquire healthcare technology company OODA Health.
According to a news release, the $425 million deal will bring together physicians and payers onto one healthcare financial technology platform at a time when digital-first, patient-friendly experiences have become a hallmark of the industry.
Technology has transformed healthcare in the wake of COVID-19, but billing and administration is still a hurdle for patients with 84 percent of adults worrying about paying their medical bills in the next year. A further one in 10 patients say they simply won’t pay their bill if the administration process isn’t clear. Physician and insurance billing remains fragmented leaving patients caught in the middle, the release says.
“Cedar’s mission has always been to transform healthcare and deliver the best possible financial experience for consumers,” Florian Otto, CEO and co-founder of Cedar, says in the release. “We’ve made great progress toward that goal, but consumers still need greater financial clarity and more affordable healthcare — and the experience with one’s provider or one’s payer is just part of the issue. Both Cedar and OODA Health are forward-thinking when it comes to putting consumers first, and we believe that by bringing our companies together, we can identify new opportunities to help consumers — as well as payers and providers — navigate an increasingly complicated healthcare system, leading to better outcomes for all parties involved.”
Throughout the pandemic Cedar has seen significant growth as the industry shifted to digital health. The company is seeking to empower users with more transparency and assurance when it comes to the financial experience, according to the release.
“Payers and providers recognize the importance of working together to fix the broken consumer financial experience, and are more committed than ever to unlocking administrative efficiencies that drive accessibility and affordability,” Seth Cohen, co-CEO and co-founder of OODA Health, says in the release. “We’re tackling healthcare administration and billing head-on by building the most comprehensive technology and services platform for providers and payers. We’re thrilled to unite our two teams with that goal in mind and are excited to make a more positive and meaningful impact on the lives of consumers.”