Machinify Expands AI-Powered Payment Integrity Platform with $670M Acquisition of Performant Healthcare

Machinify, a leading healthcare data company, has closed its acquisition of Performant Healthcare for approximately $670 million, marking a significant expansion of its AI-powered platform in the healthcare payment integrity sector. The deal, which combines Machinify's advanced artificial intelligence capabilities with Performant's expertise in audit and recovery, aims to deliver enhanced services to a broader range of organizations, including government programs.

Strategic Integration to Enhance Payment Accuracy

The acquisition brings together Machinify's AI-driven software platform, which currently serves over 75 health plans representing more than 170 million lives, with Performant Healthcare's deep audit and recovery expertise. This integration is expected to enable faster and more accurate insights, reduce administrative burden, and unlock greater savings for health plans.

Matt Holt, Managing Director and President of Private Equity at New Mountain Capital, which acquired Machinify earlier this year, stated, "Performant strengthens Machinify's leadership as the next-generation platform for payment accuracy and intelligence. This strategic integration aligns with Machinify's mission to make payments smarter, faster, and more transparent."

Expanded Capabilities and Market Reach

With the addition of Performant, Machinify's platform now supports hundreds of millions of claims annually, delivering billions in savings through its unified AI and human-expertise model. The combined entity will offer enhanced services to both commercial and government payers, covering end-to-end intelligence across claim error detection, prevention, recovery, and coordination of benefits.

Simeon Kohl, CEO of Performant, will remain with the company and join the Machinify leadership team, ensuring continuity and expertise in the integration process.

Industry Impact and Future Outlook

The acquisition is part of a larger consolidation trend in the healthcare technology sector, with private equity firms playing a significant role. New Mountain Capital's involvement, following its merger of The Rawlings Group, Apixio's Payment Integrity business, and Varis last fall, signals a strategic push to create a comprehensive AI-powered payment integrity powerhouse.

As the healthcare industry continues to grapple with issues of waste and inefficiency, the combined capabilities of Machinify and Performant are positioned to address these challenges, potentially reshaping the landscape of healthcare payment systems and improving overall accuracy and transparency in the process.