The Innovation Institute, a California firm that invests in and helps grow cutting-edge companies in the healthcare sector, has acquired Franciscan Health and Wellness Services, a health solutions and wellness company that was founded and owned by Franciscan Missionaries of Our Lady Health System.
Terms of the acquisition, which closed earlier this month, were not disclosed. But officials with all three entities involved say the transaction is a proverbial win-win-win.
For the former Franciscan Health and Wellness Services—which has been rebranded since the sale as inHealth Strategies—the acquisition by The Innovation Institute represents an opportunity to grow to a national level. inHealth Strategies currently works with 100,000 individuals in 13 states and has revenues of some $2.5 million. Company President Dr. Stephanie Mills says plans call for increasing revenues by 25% this year, and entering new markets around the country.
For the Innovation Institute, the deal represents the 14th addition to a rapidly expanding portfolio of diverse health care companies. inHealth Strategies focuses on using analytics to evaluate the health data of a given population—an employee base or school system, for instance—then develops various health risk assessments and screenings, wellness programs, holistic health coaching and consulting services for that client.
The Innovation Institute President and CEO Joe Randolph says the company is a good fit for his firm.
“They have a great reputation and a track record of success in improving health and reducing healthcare costs for employers,” he says.
For FMOLHS, parent company of Our Lady of the Lake Regional Medical Center, the deal is particularly advantageous. FMOLHS sold the company but will be able to continue indirectly benefiting from its growth, as FMOLHS owns a stake in The Innovation Institute. FMOL bought into the California firm, which is owned by several nonprofit healthcare providers, in 2015.
inHealth Strategies will be moving out of its offices on the OLOL campus, but will retain a local presence, says Mills, who estimates that the company’s six employees will spend most of their time working remotely and on the road.
—Stephanie Riegel
