Divestiture allows company to focus on its healthcare business
LOUISVILLE, Ky., April 3, 2012 /PRNewswire/ -- SHPS, Inc., a provider of health management software and solutions, has sold its Human Resource Solutions (HRS) subsidiary to ADP, a leading provider of human resource outsourcing, payroll services, tax and compliance services, benefits administration and integrated computing solutions for vehicle dealers, based in Roseland, New Jersey. The transaction closed April 2, 2012. Terms were not disclosed.
With this transaction, ADP has acquired mature benefits outsourcing service capabilities that include eligibility and enrollment, health spending accounts, COBRA administration, absence management, benefits advocacy, and print and fulfillment, along with a strong portfolio of clients.
SHPS' remaining businesses, Carewise Health and Landacorp, remain intact as wholly-owned subsidiaries. Carewise Health provides health improvement and medical cost management services to employers and government agencies, serving more than 2 million members. Landacorp provides collaborative care software and solutions used by health plans and hospitals to serve nearly 50 million members nationwide.
According to Rishabh Mehrotra, president and CEO of SHPS, the divestiture of its HR business is a strategic move which allows the company to become a focused provider of healthcare software and solutions, at a time of rapid growth within the healthcare industry. "As the delivery model for healthcare evolves towards accountable care organizations and medical homes, employers, payors and providers are looking for collaborative care solutions that can effectively help members achieve better personal health while driving high member satisfaction at a lower total cost," explained Mehrotra. "With our portfolio of clinical solutions and proven technology, we are well positioned to capitalize on this trend."
With the divestiture complete, SHPS is launching an initiative which will leverage the capabilities of Landacorp software with the clinical expertise and advanced health analytics of Carewise Health. The goal of this initiative is to give payors and providers the turnkey infrastructure needed to better manage member health risk and its associated costs. "The unique combination of Landacorp and Carewise Health resources provides the critical capabilities needed to help payors and providers build and execute the next generation of healthcare delivery," said Mehrotra.
More information about the acquisition can be found by visiting www.adp.com.
SHPS, Inc. is dedicated to helping organizations improve member health and control healthcare costs through its Carewise Health and Landacorp subsidiaries. Landacorp creates care management software and solutions that enables highly efficient collaboration among health plans, providers and members. Carewise Health delivers industry-leading health and wellness programs which give members the skills they need to achieve and sustain optimum health. Visit www.carewisehealth.com to learn more.
SOURCE SHPS, Inc.