Acquisition creates a combined company valuation exceeding $1 billion
SANTA CLARA, Calif.–(BUSINESS WIRE)–LeanTaaS, Inc., a Silicon Valley-based leading provider of AI-powered and SaaS-based capacity management and patient flow software for health systems, today announced it has acquired Hospital IQ, a leading provider of intelligent automation solutions for hospitals. The acquisition values the combined company at more than $1 billion in enterprise value and enables it to power intelligent operations across more than 180+ U.S. health systems. Together, LeanTaaS and Hospital IQ will drive improved patient access, staff satisfaction, and revenue productivity by solving thorny issues in multiple departments, including the infusion suite, operating room, and inpatient units, around capacity management and staffing shortages.
“We are thrilled to welcome Hospital IQ, a company that shares our passion and expertise for operational optimization in healthcare. The strategic combination of LeanTaaS and Hospital IQ unites the two best companies in hospital operations at a time of profound industry need,” said Mohan Giridharadas, LeanTaaS founder and CEO. “Every health system in the country has an urgent need to improve the utilization of both staff and assets to improve patient access. By joining forces, we will be able to offer our customers an unparalleled platform for optimizing their operations and improving patient care.”
The transaction creates the largest AI-powered hospital operations software provider in the healthcare technology industry. LeanTaaS has deployed its three market leading products (for ORs, Infusion Centers, and Inpatient Beds) at scale across 150 health systems and 500 hospitals in 43 states. Hospital IQ has complementary strengths in workflow automation for inpatient flow and surgery, dynamic capacity and workforce management to meet patient demand, and deep existing partnerships with multiple technology providers, including Oracle Cerner, Altera Digital Health (formerly part of Allscripts), and Siemens Healthineers.
“The combination of LeanTaaS and Hospital IQ marks a pivotal moment for the industry. Significant clinical advancements are happening, and our combined company is poised to unlock similar operational achievements,” said Rich Krueger, CEO of Hospital IQ. “Our teams share the same values — caring deeply about improving healthcare access, quality, and efficiency for everyone. We are excited to work alongside the LeanTaaS team as we continue to forge ahead on a joint mission to make a profound, positive impact on capacity, thus improving the staff and patient experience.”
“We’re at a crucial tipping point where health systems across the nation are struggling with the lingering effects of COVID-19 and endemic staffing challenges,” said Steve Hess, chief information officer of UCHealth, which comprises 12 acute-care full-service hospitals and more than 150 clinics across Colorado, southern Wyoming, and western Nebraska. “As a strategic partner and an early investor in LeanTaaS, we’re proud to continue to partner with LeanTaaS to address these industry-wide challenges head on all while gaining care improvements and cost efficiencies. There’s certainly a market demand for these solutions, and I’m looking forward to seeing how the combined team will accelerate a new wave of AI-powered innovations to transform hospital operations.”
This transaction comes just six months after LeanTaaS’ announcement of a significant growth investment by Bain Capital Private Equity, and after recently being recognized as a top 100 healthcare and life sciences company on the Deloitte Technology Fast 500™, further representing LeanTaaS’ continued investment in innovation.
Kirkland & Ellis LLP served as legal advisor on the transaction.
LeanTaaS provides software solutions that combine lean principles, predictive and prescriptive analytics, and machine learning to transform hospital and infusion center operations. The company’s software is being used by over 150 health systems across the nation, which all rely on the iQueue cloud-based solutions to increase patient access, decrease wait times, reduce healthcare delivery costs, and improve revenue. LeanTaaS is based in Santa Clara, California, and Charlotte, North Carolina. For more information about LeanTaaS, please visit https://leantaas.com/, and connect on Twitter, Facebook and LinkedIn.