Health IT

Welltok scoops up messaging company Wellpass to reach Medicaid market

The deal will enable Welltok, which helps organizations connect consumers to health resources, expand its footprint in the managed Medicaid and government markets.

Office workstation top view of business people working around M&A, keyboard, calculator, phablet and money on wooden table - merger and acquisition concept

Welltok, which helps organizations connect consumers to health resources, has acquired Wellpass, a company that provides a healthcare messaging platform.

Financial details were not disclosed.

Through the deal, Welltok is able to bring text messaging capabilities to its platform and expand its footprint in the managed Medicaid and government markets. The acquisition will let Wellpass’ clients better engage their members and incentivize consumer behaviors.

“We look forward to building on Wellpass’ successful creation of consumer-first, actionable solutions that enable managed Medicaid, community-focused organizations and state agencies to effectively improve the health and well-being of their populations,” Welltok chairman and CEO Jeff Margolis said in a statement.

Based in New York City, Wellpass provides text-based programs that let individuals, payers and providers connect. Its initiatives include Text4Baby and Text2Quit. In addition to managed Medicaid plans and departments of health, Wellpass also counts providers and pharma companies as clients. The company formed in 2017 through the merger of Voxiva and Sense Health.

As for Welltok, health plans, employers and providers can use its tools to help consumers get health improvement tools. Additionally, the Denver, Colorado-based company leverages machine learning to let population health managers learn about the needs of their consumers.

Welltok raised a $75 million Series E round earlier this year from investors such as Future Fund Management Agency, NF Trinity Capital, Ziff Davis and ITOCHU Corp.

The Denver organization has also made its fair share of acquisitions.

Last fall, it bought Tea Leaves Health for $80 million from Ziff Davis, a subsidiary of j2 Global, to add hospitals to its customer base. Health systems can use Tea Leaves’ tools to engage consumers and physicians.

In 2015, it purchased Predilytics, a data analytics business, for an undisclosed amount. Later that year, Welltok also acquired Silverlink, which helps health plans reach out to their members.

*Correction: An earlier version of this article incorrectly said providers are using Welltok’s offerings. It has been updated to say that population health managers are using Welltok’s tools.

Photo: Kritchanut, Getty Images

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