Nuance sells its transcription, EHR health businesses
Nuance is selling two of its health units to DeliverHealth Solutions LCC, an independent company formed by Assured Healthcare Partners and Aeres Technology Group. Nuance will be a shareholder in DeliverHealth. Assured Healthcare Partners is a private equity firm and Aeries is an outsourcing company.
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The units that will form DeliverHealth include Nuance's Health Information Management (HIM) Transcription business -- which includes both Nuance Transcription Services (NTS) and the eScription technology platform -- and Electronic Health Record (EHR) Go-Live Services business.
Nuance will continue to provide its technology to the new independent company.
"With this strategic transaction, we're aligning our resources to increase our market and technical leadership position in high-growth, high-impact areas that help our customers in a transformative way to improve patient care and operational performance," said Nuance CEO Mark Benjamin. "At the same time, we're enabling the medical transcription and EHR Go-Live Services businesses to reach their full potential as a separate, focused company benefiting from the enhanced investment and operational experience of AHP and Aeries and technology support from Nuance."
Nuance also reported its fourth quarter financial results. The voice recognition software provider posted non-GAAP earnings of 18 cents per share on revenue of $352.9 million. Wall Street was expecting earnings of 16 cents per share on revenue of $345.7 million. Nuance's shares were up just under 5% in late trading.
Nuance's Q4 healthcare revenue was $220.5 million, down 10% from $245.7 million a year ago. The company's enterprise revenue was $123.7 million compared to $126 million a year ago. Nuance said the declines in these businesses were largely driven by COVID-19 impacts.
Looking ahead, Nuance expects revenue for fiscal year 2021 between $1.327 billion and $1.367 billion, representing growth between 3% and 7%. Nuance anticipates the growth despite losing a $40 million government contract in its legacy Coding business that didn't renew after 5 years.