A North Carolina health tech firm has purchased a Massachusetts health-care workflow automation company to boost its mission of improving hospital operations across America.
Charlotte-based LeanTaaS acquired Newton-based Hospital IQ — establishing a company valued at more than $1 billion. The purchase will incorporate their combined, artificial intelligence-powered software across more than 180 U.S. health systems. LeanTaaS and Hospital IQ say the integration will improve patient access, staff satisfaction and revenue productivity by solving issues in several hospital departments such as the infusion site, operating room and inpatient units.
LeanTaaS, founded in 2010, uses AI to manage availability for hospital beds, operating rooms and chemotherapy infusion centers with its iQueue platforms. It has worked with more than 500 hospitals and 130 health systems across 43 states.
Hospital IQ's strengths center around workflow automation for inpatient flow and surgery, dynamic capacity and workforce management to meet patient demand, LeanTaaS said. Its existing partnerships include Oracle Cerner, Altera Digital Health and Siemens Healthineers.
"The strategic combination of LeanTaaS and Hospital IQ unites the two best companies in hospital operations at a time of profound industry need,” said Mohan Giridharadas, LeanTaaS founder and CEO. “By joining forces, we will be able to offer our customers an unparalleled platform for optimizing their operations and improving patient care.”
The transaction comes six months after Boston-based Bain Capital Private Equity announced it would make a substantial investment into LeanTaaS to advance its growth. The deal closed in the third quarter of 2022. Bain holds a majority position on the LeanTaaS board and is involved in strategy. Financial details of the investment were not disclosed.
"Significant clinical advancements are happening, and our combined company is poised to unlock similar operational achievements,” said Rich Krueger, CEO of Hospital IQ. “Our teams share the same values — caring deeply about improving health-care access, quality and efficiency for everyone. We are excited to work alongside the LeanTaaS team as we continue to forge ahead on a joint mission to make a profound, positive impact on capacity, thus improving the staff and patient experience."
Steve Hess, chief information officer of UCHealth and early investor in LeanTaaS, said health systems across the nation are still grappling with the lingering effects of Covid-19 and staffing shortages.
He added, "There’s certainly a market demand for these solutions, and I’m looking forward to seeing how the combined team will accelerate a new wave of AI-powered innovations to transform hospital operations."
