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October 22, 2008 Canopy Financial Acquires CareGainConsolidation Continues In A Highly Competitive Marketwith Eric G. Brown, Brendan McGowan |
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Executive Summary
Canopy Financial, a technology solutions provider in the consumer-directed health plan (CDHP) market, announced on October 15, 2008, that it had acquired CareGain — a key competitor — from Fiserv. This transaction closes the healthcare chapter for Fiserv, a large technology provider for the financial services industry that sold the rest of its healthcare businesses to United HealthCare Services in late 2007. But more importantly, the deal is one of many signs of improved maturity in the market for CDHP solution providers. This and other recent examples of consolidation have led to a list of vendors that are stronger and more financially stable than they were just a few years ago. This ultimately makes the procurement decisions a little easier for eBusiness professionals working with CDHP product managers at health plans, third-party benefit administrators, and banks.
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