PHILADELPHIA – A recent deal between Portico Systems and Kryptiq helps one company almost double its client base, while allowing the other to strengthen its focus.

The April 21 announcement that Portico has acquired Kryptiq’s Choreo suite of health plan network management software boosts Philadelphia-based Portico’s customers from 17 to 33 and gives the company a more robust provider contracting offering, suitable for smaller health plans, says Portico Chief Operating Officer Sam Muppalla. On the other hand, Portland, Ore.-based Kryptiq’s selling off of its health plan-facing line allows the company to focus on its provider offerings.

“It really enables us to... focus on the opportunity for more collaborative and connected environments,” said Malcolm Costello, Kryptiq’s senior vice president of marketing and strategic relations.

Company officials expect to use the proceeds raised through the sale of Choreo to expand Kryptiq’s flagship product suite, Connect IQ, which includes secure messaging, patient portals, e-prescribing, patient revenue capture and document management.

According to Costello, the development of electronic medical records and practice management solutions creates a focus on the availability and reliability of data.

“We’re facing a dramatic increase in market demand for our products, due to providers’ urgency to contain healthcare costs, operate more efficiently and improve quality,” said Luis Machuca, Kryptiq’s CEO.  “We expect this growth rate to accelerate, requiring 100 percent focus of our resources to stay ahead of this rapid adoption curve.”

The Choreo suite was launched in 2007 for health plans, offering provider contracting and network management services. According to Muppalla, Choreo “fills a nice sweet spot for us” because it provides a simple turnkey solution that’s ideal for customers trying out the product for the first time as well as smaller health plans.

“Most health plans are beginning to understand that investment in provider management is a cornerstone” to better business and visibility to members, he said.

“Ongoing innovations in reimbursement methodologies are driving our customers to demand solutions that seamlessly integrate provider contracts with claims system vendors such as TriZetto, DST and EDS,” said Murali Karamchedu, who is joining Portico Systems as VP Healthcare Architect. “The synergy between Choreo and Portico allows us to enable these initiatives for our customers."