Allina outsources IT in 10-year, potential $108 million deal (Modern Healthcare)

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[Written 01/06/2015 by Joseph Conn]

Provider network Allina Health, Minneapolis, is outsourcing its IT data warehousing, analytics and performance improvement areas to Health Catalyst, Salt Lake City, in a deal designed to foster cost-cutting and quality improvements.

The 10-year deal, which includes gain-sharing and an equity investment, carries a potential price tag of about $108 million, the organizations have announced.

Only 80% of the contract cost is fixed, said Health Catalyst CEO Dan Burton. The remaining 20%, roughly $20 million, “is at risk, tied to specified outcomes and improvement goals that we develop jointly,” Burton said.

Both Allina and Health Catalyst will use data analytics to identify potential improvement targets. A committee of executives from both organizations will set goals for the risk- sharing, quality and cost-improvement portions of the contract… Click to view entire article

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