Private equity-backed CareCentrix, a provider of home health benefits management services to the managed care industry, has acquired Sleep Management Solutions, a company specialising in sleep benefits management.
With the acquisition of SMS, CareCentrix, which partnered with healthcare private equity firm Water Street Healthcare Partners in 2008 to become a standalone company, expands its services into the fast-growing area of sleep benefits management. SMS provides health plans with a comprehensive program focused on improving patient outcomes and reducing the cost of sleep services.
The company provides Home Sleep Testing (HST) technology to qualifying patients who conduct their prescribed sleep diagnostic test in their homes, enabling a more natural environment for testing at less cost than a facility. SMS also follows up with people who are approved for sleep therapy devices to ensure they are using the equipment properly and following their prescribed treatment. HST adoption has increased significantly since the Centers for Medicaid and Medicare Services approved it for treatment in 2008.
“As awareness of sleep disorders has grown, employers and insurers have seen a 15 – 20 percent annual increase in the cost of diagnostic testing and medical equipment to treat these conditions. SMS’s home testing program has saved health plans approximately USD0.50 per member per month on their benefit spend," says Eric Reimer, chief executive officer, CareCentrix. "Its integrated approach to sleep benefits management is directly in line with CareCentrix’s vision to bring innovative home-based services to health plans and their members that result in improved quality of care at a reduced overall cost."
