Dive Brief:
- Health data company Commure will acquire artificial intelligence documentation firm Augmedix for about $139 million, the companies said Friday.
- Under the take-private deal, Augmedix shareholders will receive $2.35 per share in cash. The companies expect the transaction to close in the late third quarter or early fourth quarter this year.
- The acquisition comes months after Commure said it would merge with another health company, Athelas, which also offers an AI scribe.
Dive Insight:
Using AI to help clinicians document appointments with their patients is a popular use case for the burgeoning technology. Providers have long argued the hours spent on note-taking hampers patient care and contributes to burnout.
A number of firms, including Amazon, Microsoft-owned Nuance Communications and Oracle, have launched their own AI scribes, saying their products could help alleviate providers’ heavy administrative tasks.
Augmedix is another competitor in the automated documentation space, working with more than 20 major health systems and hundreds of care sites, according to a blog post from Commure.
The company also has a partnership with HCA Healthcare, one of the largest hospital operators in the country. The provider is preparing for “wide deployment” of its scribe, Augmedix Go, across HCA’s emergency departments, Augmedix CEO Manny Krakaris said on a first-quarter earnings call this spring.
Commure, which offers data analysis and revenue cycle management products as well as an AI scribe, said the acquisition will grow the number of providers using its technology suite. It currently works with more than 250,000 providers across the country, the firm said.
“As part of Commure, we believe Augmedix will be well-positioned to scale ambient documentation solutions to even more clinicians and health systems while simultaneously accelerating efforts to infuse more innovative features, integrations, and AI capabilities into our product suite,” Krakaris said in a statement.
Augmedix reported $13.5 million in revenue during the first quarter, a 40% increase from the prior-year period. But the documentation firm also posted a $6.5 million net loss during the quarter and lowered its full-year revenue guidance.
