Focura and Medalogix have merged to form an as-of-yet unnamed combined organization. The technology-based companies joined forces to improve post-acute home-based care delivery amid rising demand. Financial terms of the transaction were undisclosed.

The new strategic combination allows the companies to leverage their collective resources to develop a post-acute care technology platform. The platform will focus on advancing “intelligent patient care” services in home settings and improving transitional care coordination, the companies stated in an announcement on Wednesday.

Home-based care providers are facing tremendous operational and financial challenges, according to Elliott Wood, CEO of the clinical decision support company Medalogix. Wood will become CEO of the combined business. Technology has increasingly played a critical role in helping home health and hospice providers connect with a growing aging population in need of their services, he said.

“From day one, we have believed that the future of health care is in the home,” Wood said in a statement shared with Hospice News. “We’re excited to join forces with Forcura to maximize the reach and impact of our clinical decision support technology and help evolve how providers care for patients and guide them to the best care setting while also achieving operational excellence. Ultimately, our goal is to help forge a stronger post-acute sector so more patients can receive care where they want it most: at home.”

The strategic combination of Medalogix with workflow management company Forcura will allow post-acute providers to utilize one platform that will simplify care collaboration, improve care transitions and end-of-life care management, and optimize operational efficiencies and resource allocation, according to the two companies.

Berkshire Partners will be the majority owner of the combined organization, with The Vistria Group as the largest minority shareholder in the transaction. ​​Houlihan Lokey served as the exclusive financial advisor for Forcura and Accel KKR, with Kirkland & Ellis LLP serving as their legal counsel. Ropes & Gray LLP served as legal counsel to Medalogix and Vistria, with William Blair serving as their exclusive financial advisor.

The new company’s products will be designed to ensure smoother referral processes and more sustainable reimbursement during a time of evolution in the health care industry, the combined organization stated. Value-based care is gaining momentum in the post-acute sector, and AI-enabled technology can be an important part of how providers demonstrate the benefits of their services in terms of quality and cost benefits, the companies indicated.

Bringing the two technology companies together will expand the potential for the development of innovative approaches that help home health and hospice providers better manage patient outcomes, reimbursement processes and their overall business performance, according to Annie Erstling, the new president and chief transformation officer at the workflow management company Focura.

“This investment from Berkshire and Vistria will accelerate our joint development, alongside Medalogix, of a groundbreaking post-acute care technology platform that drives significant value for providers, payers, and patients,” Erstling said in the statement.