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athenahealth announces acquisition of Arsenal Health, formerly known as Smart Scheduling

athenahealth, a leading provider of network-enabled services and mobile applications for health care providers nationwide, today announced the acquisition of Arsenal Health. With its flagship schedule optimization service that allows providers to take control of their daily appointment volume by predicting no-shows and cancellations, Arsenal Health has successfully brought the power of machine learning to the forefront of health care. Arsenal Health was athenahealth’s first investment via the ‘More Disruption Please’ (MDP) Accelerator and benefitted from direct access to athenahealth’s internal resources, expertise, and network of over 75,000 providers.

The acquisition will make Arsenal Health’s schedule optimization solution widely available as a native part of athenaNet – moving Arsenal Health from third-party service delivered via the athenahealth Marketplace to a native capability that will be available to customers via athenaCoordinator. Looking ahead, athenahealth expects this acquisition to accelerate its capabilities in machine learning and predictive analytics. This competence, when married to strong data-sets like that of athenahealth’s 74 million plus patient records, offers tremendous potential to broaden the scope of network insights, and enhance existing offerings through the development of a smarter platform.

“We are thrilled to welcome the Arsenal Health team to athenahealth as it represents numerous opportunities and proof points,” said Doran Robinson, Vice President of athenaCoordinator. “First, the scheduling service has proven it can be highly impactful to providers, helping ensure that days run smoother, more patients get seen, and more revenue flows in. Second is its potential as an additional on-ramp to the machine learning, predictive analytics and artificial intelligence space in health care. The prospect of building on Arsenal Health’s technology and combining it with our own valuable data to positively impact care and expand the power of our network is extremely compelling. Finally, the company is a testimonial to what we’re trying to do with our ‘More Disruption Please’ program – provide young health tech companies the opportunity to develop and scale with athenahealth’s support and resources.”

Arsenal Health CEO Chris Moses added, “By joining athenahealth, we believe we can accelerate our growth while effectively testing and advancing our predictive analytics technology. To date, our success lies in our ability to track client performance, learn the intricacies of how providers work, and ultimately predict their needs. We believe that with athena we can continue to improve this offering by leveraging athena’s volume of data to develop a new class of network intelligence-based services that will be well-positioned in an industry moving towards data-driven care.”

Arsenal Health was founded by a team who met at an MIT hack-a-thon and decided to apply data science to health care’s scheduling problem. The company quickly advanced through the Healthbox accelerator program, developed a solid technology platform, and proved early traction before partnering with athenahealth to scale. Having made an investment in 2014, athenahealth installed Arsenal Health at its Watertown campus, and has since fast-tracked adoption of the company’s service —helping them grow from one client to 700+ providers by winning large, complex health systems and small provider offices as clients through the athenahealth Marketplace. Arsenal Health’s success is a true example of athenahealth’s ability to serve as a value added investor and a partner for up-and-coming companies.

A revenue-driving service powered by top data expertise

  • Arsenal Health’s schedule optimization solution currently serves over 700 athenahealth providers, including many from signature clients.
  • Arsenal Health’s service is proven to decrease no show-rates and increase patient visits. The scheduling optimization solution shows a statistically significant lift in RVUs (Relative Value Units), driving up to $700 per-provider per-month to the bottom line by accurately predicting no shows and optimizing the providers’ schedule.
  • Chris Moses and Arsenal Health’s current team of data scientists and developers will join athenahealth working under Doran Robinson, who heads athenaCoordinator. Together they will work to build out intelligence-enhanced, data-driven services to power athenaNet. 

Financial terms of the transaction were not disclosed.