Healthcare software and services company WellSky is deepening its social determinants of health (SDOH) offerings by acquiring Healthify.

The New York-based startup has created an SDOH infrastructure that builds and supports networks of community-based organizations and local healthcare providers. Its interoperable technology platform then allows providers to search for local social services, coordinate care and track the success of interventions.

The terms of the deal were not disclosed. The transaction remains dependent on customary closing conditions and is expected to close in the third quarter of 2021.

WellSky will add Healthify’s SDOH capabilities to its portfolio of healthcare technology tools for providers, payers, health systems and community organizations. Its product suite currently includes a range of services for hospitals, home healthcare, long-term care facilities, value-based care partnerships and community care organizations.

“With the addition of Healthify, WellSky adds yet another crucial capability to our expansive portfolio and further strengthens our position as the leading technology partner connecting care across acute, post-acute, and community organizations,” Bill Miller, CEO of WellSky, said in a statement.

“We have a longstanding commitment to investing in care coordination and whole-person care. By leveraging Healthify’s networks of community-based organizations and its interoperable closed-loop referral platform, payers and providers can effectively coordinate care to close gaps, improve outcomes, and promote health equity.”

WHAT’S THE IMPACT?

By combining Healify’s SDOH referral platform and community networks with WellSky’s software suite, the companies hope to enable better health outcomes for patients while simultaneously lowering the overall cost of care.

“Our mission at Healthify is to build a world in which no one’s health is hindered by their socioeconomic needs, and with WellSky, I saw a similar dedication to improving health outcomes,” Manik Bhat, cofounder and CEO of Healthify, said in a statement.

“Together, we create a unique and powerful combination by offering one of the largest social services networks in the country; a market-defining solution set that brings healthcare and community services together; robust ROI analysis with additional clinical data; and the ability to scale social service reimbursement across the nation as we address long-term recovery from the pandemic.”

Specifically, Healthify clients will get access to WellSky’s existing social services, provider systems and additional technology services. On the other side, WellSky customers will gain the ability to make community-based SDOH referrals and work with states, payers and health systems without changing their current workflows.

THE LARGER TREND

WellSky is no stranger to using acquisitions to build out its digital services. In 2019, it scooped up Health Care Software, a clinical and financial software company for long-term care settings. Prior to that, it bought Fazzi Associates, BlueStrata, Rock Pond Solutions, MEDTranDirect and Consolo.

The COVID-19 pandemic placed a focus on just how much socioeconomic factors impact a person’s health, leading to an increased demand for innovative SDOH programs.

Besides Healthify, other SDOH platforms include NowPow, Unite Us and CityBlock.