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For Your Information press release below. All DRG Grouper products, contracts and services remain as-is and are supported and developed in the future w/o changes.

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LOGEX, Prodacapo, and Ivbar join forces to create a European market leader in advanced costing and quality analytics for healthcare

 

With the aim of strengthening their ability to inform and support sustainable quality improvements, transparency and efficiency in health and social care LOGEX, Prodacapo, and Ivbar have decided to join forces through the new LOGEX Group. This will create a European market leader in advanced software for analysing outcomes and costs in health and social care.

Today, the three companies all hold leading positions in their respective markets – the Netherlands, Finland, Sweden, Norway, UK and France. The new LOGEX Group will have unmatched capacities to support a holistic approach to improvement in health and social care through advanced analytics. It brings together leading capabilities from quality and costing analytics:

 

•         LOGEX is headquartered in Amsterdam and the pacesetter in the Dutch market for costing analytics, providing advanced solutions for cost tracking, budgeting and planning in healthcare. LOGEX also comprises Value2Health and MRDM. Value2Health, being the Dutch market leader in healthcare quality analytics, specializes in giving healthcare providers, receivers or organisers, access to reliable information making it possible to improve quality and outcomes. MRDM is expert in the field of data security and privacy, extracting, linking and processing medical data.

•         Prodacapo is headquartered in Helsinki and is the market leader in Finland, Sweden and Norway in costing analytics and regional performance management for the health and social care sector. Prodacapo also has a strong presence in the UK market.

•         Ivbar is headquartered in Stockholm and is a market leader in Sweden in providing technical solutions for efficiency analytics and management of advanced payment models. Its mission is to support healthcare organisations to sustainably improve outcomes.

 

The new LOGEX Group will create a favourable environment to allow for the companies to develop their core competencies and product portfolio further, with the aim of providing even stronger solutions to all stakeholders in the health and social care system, including providers, payers and authorities.

 

“As we create a larger international group, customers will benefit from a more versatile product portfolio that meets a broader spectrum of their needs as they strive to drive improvements in their operations. Utilizing our tools to drive transparency and understanding of outcomes, resource use and costs in healthcare, will help our customers in their development, and ultimately benefit patients and society,” says Philipp Jan Flach, CEO of LOGEX Group.

 

As health and social care expenditure constitutes a growing share of GDP in many European markets and healthcare budgets are under pressure, the demand for tools to increase efficiency and understand patient outcomes increases. The enlarged group will offer a holistic product offering, with strong potential to address these challenges.

 

“The outcomes and cost-effectiveness of health and social care services are among the most important development targets for our customers. Our total offering improve substantially our customers' possibilities in transition to value-based healthcare. Our extensive European network offers our clients the opportunities for international benchmarking collaboration,” says Kari Lappalainen, CEO of Prodacapo.

 

LOGEX Group will be headquartered in Amsterdam with offices across Finland, Sweden, Norway, UK, France, Czech Republic and other locations in the Netherlands. This scope of operations provides the group a broad perspective on healthcare systems in Europe.

 

“Broadening our geographical footprint, becoming a truly European company will create unmatched opportunities to benchmark healthcare performance across markets, regions and patient groups,” says Jonas Wohlin, CEO of IVBAR.

 

The new LOGEX Group will have more than 250 employees. Philipp Jan Flach will be CEO of the new group.

 

FURTHER INFORMATION

 

Kari Lappalainen, CEO, Prodacapo, p. +358 40 580 5675, kari.lappalainen@prodacapo.com

 

Q&A

 

1.       Why are the companies merging?

Our respective capabilities are highly complementary. Through the new setup we will possess market leading capabilities in both costing and quality analytics, with a unique ability to give our customers a holistic approach to analysing efficiency and quality in healthcare. It will help our customers take a 360 perspective on their improvement work.

 

2.       Why are you merging now?

As healthcare expenditure constitute a growing share of GDP in many European markets, the demand for tools to increase efficiency and track performance increases. Our customers require a holistic capability to evaluate their operations from both a quality and cost perspective. This gains all parties – not least the patients. The timing is right given the strong position each company has built in over the past years.

 

3.       Which company is mainly benefiting from this merger?

All companies benefit from:

•         more long-term commitments and stability,

•         strengthened and new competences,

•         unmatched opportunities for benchmarking healthcare across markets, regions and patient groups.

Of course, the main beneficiary of the new structure will be the customers who now find holistic support in one single partner.

 

4.       Will any of the companies change their strategy and focus as a result of the merger?

No, the new structure will offer increased stability to allow for the companies to invest in and develop their core competence and product portfolio.

 

5.       What will happen to respective brand?

All brands will be kept for the foreseeable future.

 

6.       Will respective company enter into the other markets (e.g. will IVBAR enter the Dutch market? etc.)

The plan is to keep each brand in respective market, but all companies will benefit from the cross market presence through greater access to insights and the possibility of facilitating international benchmarking.

 

7.       What does the ownership of LOGEX Group look like?

The founders of LOGEX own approximately 50 % of the group, around 30 % is owned by the purpose driven private equity company Summa Equity and the final 20 % of the group are owned by a variety of smaller owners.

 

8.       What kind of PE company is Summa Equity?

Summa Equity is one of several owners. The leadership in the new company remains with the founders of the joining companies. Summa Equity was founded in Norway and Sweden in 2016 by five partners brought together by a shared vision of building a new kind of specialised private equity firm. The company invests in sectors associated with three megatrend-driven themes: Resource Efficiency, Changing Demographics and Technology-enabled Businesses, and has built a portfolio of companies that contribute to positive development of the UN Sustainable Development Goals within areas such as health, education, agriculture, water and sanitation and technology.

 

9.       What does the merger imply for employees?

There will be no major impact on the daily operations of employees. Hopefully, they will find it rewarding to be part of a European market leader with access to a wider range of competences and more than 250 colleagues in five different countries.

 

Addressing the challenges in healthcare requires finding a solution on continuously improving quality of care, safeguarding quality of life for patients and containing costs. It is near to impossible for small organizations to have all relevant expertise and production capacity to measure and report on clinical outcomes, quality of life and costs in-depth, while simultaneously safeguarding the increasingly stringent privacy & security regulations. This partnership creates a networked corporation, where specialization on these elements are accompanied by the general and complete overview that they offer when combined.