Louisville health care company RowdMap to be sold for $70 million
RowdMap Inc., a Louisville-based company focused on data analytics and healthcare, will be sold to Atlanta-based Cotiviti Holdings Inc. for $70 million. RowdMap, founded in 2011, uses data to help healthcare providers and health insurance plans save money.
LOUISVILLE, Ky. (WDRB) -- RowdMap Inc., a Louisville-based company focused on data analytics and health care, has agreed to be acquired by Atlanta-based Cotiviti Holdings Inc. for $70 million, Cotiviti said in a press release Monday.
RowdMap, founded in 2011, uses data to help health care providers and health insurance plans save money by cutting down on inefficient or unnecessary services.
The company helps providers navigate new “value-based” payment models -- in which reimbursements are tied to health outcomes -- instead of traditional “fee for service” health care, in which providers get paid based on the volume of services they perform.
“The trend toward value-based care increases the complexity associated with payment and creates a greater need for Cotiviti’s payment accuracy services,” said Cotiviti CEO Doug Williams in the press release.
Cotiviti provides payment audits for health plans, ensuring the accuracy of their billing and collection amounts.
“RowdMap is very excited to join with Cotiviti,” Melanie Rosenthal, RowdMap’s CEO, said in the release. “Together we offer complementary solutions that provide tangible medical cost improvements. In addition to a shared commitment and focus on delivering results to our clients, our common values and missions unite us as we collaboratively work to improve the healthcare system by reducing unnecessary costs and supporting the transition from volume to value.”
There are no plans to move RowdMap's Louisville office, Cotiviti spokeswoman Jennifer DiBerardino said.
RowdMap had 45 employees as of August 2016, Chief Scientific Officer Josh Rosenthal said in an interview at the time. Its office is in a renovated warehouse downtown.
DiBerardino added that Cotiviti already has a presence in Louisville with about 145 employees in Meidinger Tower downtown. She said there are no plans to consolidate the two Louisville offices.
Cotiviti will issue approximately 800,000 shares of its stock as a payment to some RowdMap employees, who were not named, to remain employed with Cotiviti, according to the release. The shares vest to the employees over a three-year period.
Cotiviti will fund the deal with its available cash, and it is expected to close by the end of the month.