Strategic Impact
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Acquiring HCPro 鈥� An Investment In the Future
In early 2019, pd探花 began an assessment to determine its strategic position and the long-term challenges facing the health information (HI) profession. That planning led to conversations around various investment strategies to solidify the association鈥檚 position as the HI market leader and broaden our impact in the field.
pd探花 leaders engaged with investment firms to consider options to channel available funds to strengthen pd探花鈥檚 financial position in the future and further diversify and expand resources for the health information community. Possibilities were investigated, including mergers, acquisitions and even new business opportunities. pd探花 sought to understand how other associations had proactively pursued acquisitions of strategically aligned organizations as well as similar business models.
Decision to Acquire HCPro
In 2023, a strategic decision was made by the pd探花鈥檚 Board of Directors to acquire HCPro, a market-leading provider of education and decision support solutions focused on empowering healthcare professionals and organizations to drive compliance, financial success, and operational excellence.
Improving Healthcare Through Knowledge
This acquisition truly complements our vision as both pd探花 and HCPro are focused on improving healthcare through knowledge. The HCPro portfolio of products aligned with pd探花鈥檚 goals and provided an opportunity to expand pd探花鈥檚 offerings to both the professionals doing this vital work and the health systems committed to excellence in health information.
As a wholly owned subsidiary of pd探花, HCPro offers significant benefits to pd探花:
- Financially, HCPro is generating strong earnings that support pd探花鈥檚 cash flow, thereby strengthening the association鈥檚 financial position.
- Operationally, HCPro brings efficient processes and best practices in the critical areas of member support and services, production workflows, customer service, and event management.
- Strategically, HCPro adds Coding, CDI and Medicare compliance offerings in both acute and post-acute settings to the pd探花 enterprise that helps support health information professionals.
Frequently Asked Questions
Why would an association acquire a for-profit company?
Often associations look for opportunities to invest funds to strengthen their financial footing. Some consider merging with other membership associations or acquiring related businesses as part of a long-term investment strategy. A number of investment opportunities were considered and HCPro was determined to be the best investment opportunity for pd探花.
This acquisition allows pd探花 to operate HCPro as a for-profit, wholly-owned subsidiary, enabling the organization to remain focused on caring for its clients.
How are pd探花 and HCPro aligned?
At the time of the acquisition, pd探花鈥檚 Board was seeking strategic ways to broaden the organization鈥檚 impact. They believed that acquiring HCPro truly complemented their vision as both pd探花 and HCPro were and remain focused on improving healthcare through knowledge. Adding HCPro to the pd探花 family deepens our expertise, gives us greater agility, and enables us to bring new solutions and services to the healthcare market more quickly.
How does pd探花 benefit from the acquisition of HCPro?
As a wholly owned subsidiary, the profitability of HCPro directly impacts the financial stability of pd探花 as its sole investor and owner. pd探花 and HCPro are committed to serving health information professionals both now and long into the future. This partnership is designed to usher in a new wave of enhanced support for pd探花 members and the broader HI community.
What are the financial details of the acquisition?
pd探花 is a 501(c)(6) non-profit membership association that publishes an IRS Form 990 as required by law. However, HCPro LLC is a for-profit business in a highly competitive industry. Revealing proprietary details could compromise their profitability and thereby impact the financial strength of pd探花 and HCPro.
Is pd探花 able to share financial information about HCPro?
To protect its investment, pd探花 cannot disclose details surrounding the acquisition without risk of adversely impacting the association鈥檚 business, financial condition, operations, and cash flow. Additionally, publicly revealing HCPro鈥檚 financial information or strategic, long-term planning could put the company鈥檚 performance at risk, particularly in light of the tremendous investment and technological resources of their largest competitors.