Premier to buy two Greater New York Hospital Association subsidiaries

Premier Inc., a renowned healthcare improvement company, has reportedly announced that it has entered a definitive agreement to purchase certain liabilities and all the assets of Nexera, Inc. and Acurity, Inc., two wholly owned indirect subsidiaries of GNYHA (Greater New York Hospital Association), for nearly $291.5 million, comprising of nearly $166.1 million in cash at additional and close estimated delayed payments of $125.4 million.

Acurity, a group purchasing organization (GPO), has been a strategic partner as well as customer of Premier for more than 24 years. Acurity has substantial scale, with members comprising of 2,700 health related facilities and more than 300 hospitals, accounting for 10% or roughly $68.0 million, of total net fees revenue of Premier in its FY2019.

Nexera, a healthcare consulting firm, collaborates with healthcare organizations to enhance performance of hospital and health system, with a major focus on transformation and enhancement of the supply chain. It operates as well as co-manages supply chain operations for several Acurity clients, driving down costs of hospital through rigorous processes, which includes strategic resource allocation, product standardization and value analysis.

Susan DeVore, Chief Executive Officer, Premier, stated that the company has developed a strong, cooperative relationship with GNYHA and its member hospitals for more than two decades and the announcement is an evidence of the close collaboration, strategic alignment and the total strength of these relationships.

DeVore further stated that through these acquisitions, the company expects to build upon the substantial revenue that is currently driven by Acurity to Premier and unlock substantial added value by offering technology and services of Premier to these member hospitals. The company is thrilled to scale business of Nexera outside the New York tri-state market and is looks to unlock considerable opportunities by connecting the value analysis services of Nexera with the clinical effectiveness analytics of Premier.

Lee Perlman, President, GNYHA Ventures and Jody Lomeo, Chairman, GNYHA Ventures and CEO of Buffalo, New York based Kaleida Health, in a joint statement stated that Nexera and Acurity are in safe hands and all Acurity as well as Kaleida Health member hospitals would significantly benefit from this transaction.

Source credit: https://www.premierinc.com/newsroom/press-releases/premier-inc-to-acquire-acurity-and-nexera-businesses-from-the-greater-new-york-hospital-association