Nomi Health grabs analytics provider Artemis Health to cut employer healthcare costs

Direct healthcare provider Nomi Health has acquired health analytics company Artemis Health to accelerate its mission of cutting healthcare costs for employers.

Artemis offers analytics software that helps employers and health plans lower the costs of their health benefits while maintaining outcomes.

The tools will build on Nomi’s existing platform, Nomi Connect, which lets employers buy services directly from providers. The company says it has delivered everyday care to more than 10 million Americans across 15 states, including leading the nation's testing surge amid omicron. Nomi also says it runs the largest mobile COVID care program in the country with a fleet of more than 50 care units traveling throughout care deserts.

Nomi shelled out $200 million for the deal, according to Axios. The company didn’t respond to a request for comment.

RELATED: How COVID-19 is changing the way HR professionals think about employee benefits

“As costs skyrocket and access shrinks, organizations need clear data at their fingertips and partners who know how to turn these insights into action. Our acquisition of Artemis Health does exactly that,” said Mark Newman, founder and CEO of Nomi Health, in a statement. “Artemis shares Nomi’s outlook that U.S. healthcare is fundamentally broken and new market entrants are best positioned to rebuild it.”

Salt Lake City-based Artemis provides its services to more than 500 U.S. employers and benefits advisers, according to the company, with customers including Intuit, US Foods, Paychex, GE Appliances and J.B. Hunt.

The acquisition follows Nomi’s $110 million series A round in December, co-led by Rose Park Advisors and Arbor Ventures.

In addition to Nomi Connect, the company also offers Nomi Care, an infrastructure that delivers health services like digital registration and field teams.

“Nomi Health shares our passion to improve the cost and quality of healthcare in the U.S.,” said Grant Gordon, co-founder and CEO of Artemis Health. “We are excited to bring our best-in-class data analytics capabilities to Nomi’s customers and work together to close the gap between insight and action in healthcare. Together we will continue to accelerate Artemis’s development of innovative analytics solutions for employers and their advisors, and further our mission by expanding our impact.”

RELATED: Employer insurance costs jumped in 2021—and the future is murky

Increasing costs continue to plague the U.S. healthcare system. Employer health insurance costs spiked in 2021, with the average per-employee cost rising 6.3%.

While employers appear largely optimistic about the increase, attributing it to a return to care after in-office visits plummeted in 2020, significant hurdles remain in the new year, from the emergence of high-cost genetic and cellular drug therapies to inflated healthcare prices.

Consumer out-of-pocket spending also rose in 2021, about 10% compared to the year prior, and that growth rate is expected to hold through 2026.