$108M Analytics Outsourcing Deal Puts Health Catalyst At Risk For Allina Health Outcomes (Forbes)

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[Written 01/06/2015 by Neil Versel]

A major Minnesota health system is outsourcing its entire analytics operation in a 10-year, $108 million deal with a twist: The technology vendor has a financial incentive to assure that Minneapolis-based Allina Health actually improves patient outcomes and reduces the cost of care.

Under the terms of the contract, announced Tuesday, Allina is sending its data warehousing, analytics, performance improvement technology, clinical knowledge and all of its related employees to privately held healthcare analytics company Health Catalyst.

In return, Allina receives full subscription rights to Health Catalyst’s technology, as well as an unspecified equity stake in Health Catalyst, which grew out of clinical improvement efforts at Intermountain Healthcare in Salt Lake City.

About 20 percent of the contract value is dependent on Allina showing better outcomes and lower costs. A committee that will govern the Health Catalyst-Allina partnership will annually make a list of clinical improvement projects, setting measurable outcomes goals, the vendor says… Click to view entire article

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