Brightree deepens resupply offering

ATLANTA - Brightree has signed on to buy SnapWorx, a Brentwood, Tenn.-based software company that provides a patient contact management and workflow optimization platform for the CPAP resupply market.

ResMed CEO Mick Farrell announced the deal during the company's Jan. 30 conference call to discuss its financial results for the second quarter of fiscal year 2020.

“The combination of Brightree's technology and logistical services with this new SnapWorx technology creates the largest resupply base in the industry,” he said. “For our HME customers, (it) increases patient adherence and increases operational efficiency.”

SnapWorx and its about 40 full-time employees will join Brightree, with President Emmet Seibels continuing to lead the business.

The Snap platform, according to SnapWorx's website, leverages artificial intelligence to manage order generation, insurance verification, documentation and order fulfillment, and offers real-time analytics. The company also offers a U.S.-based call center for “white glove patient support.”

Snap, according to the website, has helped more than 1 million patients get services and supplies, with more than 50% of orders going straight from booking to warehouse without using manpower.

A number of Brightree customers had been using SnapWorx to “further reach out to the customer,” Farrell said, laying the groundwork for the acquisition.

“We had observed this software that was partnering with our Brightree platform and performing really well with those customers,” he said. “So we've had a relationship with them over the last 12, 24, 36 months.”

ResMed's investment in deepening Brightree's resupply offering builds on the company's finding that increased adherence and increased resupply, together, lower total health care costs by 8% for every hour of sleep, Farrell said.

“So this is all tied together, right,” he said. “I think that combination is really powerful of now Brightree, plus SnapWorx.”

Farrell said he expects the deal to close “shortly.” He said it will be neutral to non-gap earnings per share initially, but is expected to be accretive in fiscal year 2021.