Contigo Health, LLC, a subsidiary of Premier, Inc., completes an asset transaction for contracts and licenses with national providers.

Contigo Health, LLC, a division of Premier, Inc. that offers comprehensive services that maximize employee health benefits, completed the acquisition of important assets from Devon Health, Inc. and TRPN Direct Pay, Inc. Contracts with more than 900,000 service providers at 4.1 million sites across the United States and licences to TRPN’s cost containment technologies are among the assets that will be acquired.

Contigo Health intends to use the assets it has acquired to transform the provider contracts into a new out-of-network wrap product called Contigo Health® ConfigureNetTM. Contigo Health works closely with self-funded employer health plans and healthcare systems to increase employee access to high-quality healthcare. By enhancing access to high-quality healthcare and lowering the cost of medical claims through pre-negotiated discounts with its network providers, this new product is anticipated to complement and contribute to the growth of Contigo Health’s health plan administration solutions. To provide a quick and easy process for health plans and providers alike, claims will be aligned to the network provider’s contracted rate using an electronic data interchange.

In fiscal 2023, Premier presently expects the transaction to result in an adjusted earnings per share accretion of $0.01 to $0.02. In addition, if fully scaled in the upcoming three to five years, the business anticipates the purchase to generate $40 million to $60 million in additional annual net revenue and contribute 40 percent to 50 percent of adjusted EBITDA margin.