HCIA purchasing analytical services unit

Maryland Watch

November 22, 1996

HCIA, the Baltimore health data company, announced yesterday that it is buying Equifax Health Analytical Services for $11.5 million in cash.

The analytical services unit, based in Rochester, N.Y., was formed in 1984 when Atlanta-based Equifax Inc. bought HealthChex Inc. Equifax Inc. is a large credit-reporting firm that moved into health data a few years ago, but it recently announced it is getting out of that business. It announced sales of another health-related unit this month and yet another in September.

Barry C. Offutt, HCIA's chief financial officer, said of the new acquisition, "They have methodologies that fit with our managed-care business."

In particular, he said, Equifax Health Analytical Services has a good system for "physician profiling," used by managed-care companies to keep track of doctor performance and costs.

HCIA recently announced MCO.SYS, an information project aimed at managed-care organizations. The acquisition also brings HCIA a managed-care customer base.

Offutt said operations of the new acquisition would remain in Rochester.

Pub Date: 11/22/96

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