Business process management (BPM) and technology services firm Genpact on Thursday said it has acquired Jawood, a company providing business services to the healthcare payer industry, for an undisclosed amount.
The transaction also includes Genpact’s purchase of India-based Felix Software, a key subcontracted service provider to Jawood.
As part of the transaction, the more than 420 combined Jawood and Felix Software employees will become Genpact employees and be integrated into its healthcare and IT services businesses.
Harris Williams & Co acted as the exclusive financial advisor to Jawood for this transaction, Genpact said in a statement.
Headquartered in Bingham Farms, Michigan, Jawood provides consulting and technology services including strategy, planning, execution, implementation, test data creation and testing tools to healthcare services industry.
“Under healthcare reform, with millions more people eligible for insurance and the creation of the new insurance ‘exchanges,’ the demand for solutions in the healthcare payer industry is expected to continue growing rapidly,” Tiger Tyagarajan, President and Chief Executive Officer, Genpact said.
He said Genpact’s scale of technology services – combined with Jawood’s expertise in systems and business processes unique to payers – will help Genpact to more healthcare insurance organisations make their operations more effective.
It would address the many sweeping regulatory changes that will be implemented this year and beyond, he said.
Genpact already provides BPM and analytics services in areas such as claims management, membership management, provider management, clinical services, and finance and accounting.
The healthcare payer industry is seeing growth due to extensive secular and regulatory changes including transition from ICD9 to ICD10 (codes for Medicare claims in the US), creation of health insurance exchanges, the development of alternative risk and payment models including Accountable Care, and compliance with the new US Patient Protection and Affordable Care Act, said Genpact.
This transaction will enable Genpact to build out strong industry solutions combining process, analytics and technology, it added.