UPMC Enterprises' long-term portfolio company Prodigo Solutions takes next step
UPMC Enterprises is the commercialization arm of UPMC, one of the nation’s leading integrated healthcare delivery and research organizations.Prodigo Solutions is a healthcare technology company that provides a cloud-based platform that helps hospitals and health systems procurement professionals st
Prodigo Solutions Inc. spun off from UPMC in 2008. At the time, it was still in its infancy to get a grip on hospitals and health systems' expenditures and procurement.
Now, 15 years after Prodigo's founding, the technology and system it helped create -- which allows health care providers better manage and control their procurement -- is even more important in an economic environment where margins for health care are constantly under pressure, and the Covid-19 epidemic has further tightened belts.
Michael DeLuca is the EVP for operations at Prodigo, a Cranberry Township based company.
Prodigo, one of the oldest businesses in UPMC Enterprise's portfolio, is still owned by a small minority stake by the venture capital arm. UPMC sold a controlling 51% stake in Prodigo to Alliance Healthcare Partners for $9 million back in 2014.
GHX, a Colorado based health care tech company, announced on Monday that it would acquire Prodigo at an undisclosed cost. This would be the price to buy out both Alliance Healthcare Partners' and UPMC's stakes.
GHX and Prodigo, both of which have similar business lines, will collaborate to continue saving money for health care providers and to manage their supply chain. DeLuca stated that there were already synergies among the companies, which will continue to grow once they work together.
He said that 'Our front end marketplace will be pivotal in linking to their back-end (GHX) systems and data management as well as vendor credentials and value analysis'.
Prodigo employes 75 people, most of whom are located in Pittsburgh. DeLuca stated that the management team will remain in place, and the employees will remain in the Cranberry Office.
He said Prodigo is excited to be a member of GHX.