McKesson Corporation and Change Healthcare Holdings completed their previously-announced agreement to form a new health IT company, named Change Healthcare. The new company combines the majority of McKesson Technology Solutions and “substantially all” of Change Healthcare Holdings in a $6.1 billion deal.
“We are thrilled to have completed this combination of two great organizations. Our nearly 15,000 team members will be working with our collective customers and partners to provide a stronger, increasingly collaborative and more efficient healthcare system that enables better healthcare outcomes,” said Change Healthcare CEO Neil de Crescenzo, in a statement. “I’m confident that Change Healthcare’s expertise and comprehensive offering of solutions will not only deliver near- and long-term value for our customers and partners, but also help drive the journey toward improved lives and healthier communities.”
The new company will offer health plans and providers a suite of end-to-end financial and payment solutions and technologies. In addition, customers can find solutions that help them manage administrative and clinical complexity as they navigate the transition to value-based care.
While the integration of the two companies has been ongoing since June, closing the financial transaction marks the beginning of an accelerated transitional period, with updates about the continuing integration to be shared in the coming months.
McKesson will own about 70 percent of Change Healthcare, with the remaining 30 percent held by Change Healthcare stockholders.
While the new company takes advantage of the established Change brand, new branding and logos were introduced, available at Change Healthcare’s official website. In addition, Change Healthcare may be moving its headquarters from Nashville to metro Atlanta, according to a report from the Atlantic Business Chronicle.
The Chronicle cited sources saying Change was scouting for office space around Georgia’s capital, but was also open to staying in Nashville. Their current lease in Nashville expires in October of next year.
“Today marks an exciting step forward to achieve enhanced benefits for our customers, employees and stockholders,” said John H. Hammergren, chairman of the board of Change Healthcare and chairman and CEO of McKesson. “I want to thank all of the employees who made today possible and who will continue the important work of building an industry-leading company that will help make the vision of value-based care a reality for payers, providers and consumers.”