Transcarent to acquire 98point6's virtual care platform, affiliated medical providers in $100M deal

Transcarent, a digital health company backed by major health systems, has agreed to acquire the artificial intelligence-powered virtual care platform of 98point6 in a transaction worth up to $100 million.

The deal, which is expected to close March 31, also includes 98point6's affiliated medical providers.

"Leveraging AI to drive personalization and access to care will revolutionize the virtual care experience, for the first time combining best-in-class technology with human touch," Transcarent CEO Glen Tullman said in a March 6 news release. "That’s a winning combination.”

The transaction could reach up to $100 million if it hits certain milestones, Mr. Tullman told Forbes in a March 6 story.

Transcarent has gotten backing from health systems such as New Hyde Park, N.Y.-based Northwell Health, Salt Lake City-based Intermountain Health and Chicago-based Rush University Medical Center, which all participated in a $200 million funding round for the company in January 2022. Rush later started offering Transcarent's digital app to its employees. 

Transcarent also works with payers like Banner | Aetna, a partnership between the insurer and the Phoenix-based health system. Transcarent hired longtime Cigna executive Tom Richards as its executive vice president of business development March 2.

In September, Tacoma, Wash.-based Multicare Health System became the first system to partner with 98point6 on virtual care. After the deal with Transcarent, 98point6 plans to focus on licensing its technology and software to healthcare providers.

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