Waystar’s software solution, designed to simplify healthcare payments so providers can prioritize patient care, will be enriched with AI-powered clinical intelligence from Iodine Software.
Waystar, a developer of revenue cycle management platform for healthcare facilities, is acquiring Iodine Software in a $1.25 billion deal that marks a major step in transforming how healthcare payments work.
The move will enhance AI use on the platform to reduce costly claim denials, cut manual paperwork, and help hospitals get paid faster and more accurately. It is also expected to expand Waystar’s market reach by over 15%, as Iodine’s clinical AI is already trusted by top U.S. hospitals.
By joining forces, the two companies aim to tackle the $440 billion in annual admin costs that overwhelm healthcare providers. Together, they’ll serve 17 of the 20 best hospitals in the U.S.
Since Iodine’s AI engine (IodineIQ) adds powerful clinical insights to Waystar’s existing tools, the acquirer also expects stronger growth, better margins, and more automation across its platform.
The transaction is expected to close by the end of 2025. Waystar CEO Matt Hawkins says this is a bold next step to simplify healthcare payments and eliminate unnecessary friction for providers and patients. Iodine’s team, backed by Advent and Bain Capital Ventures, also noted that the partnership will accelerate their mission and improve outcomes across the board.
The joint solution may be a game-changer for healthcare institutions that deal with numerous obstacles in their daily payment management routines. As an illustration, up to 60 million claims are denied annually, often due to preventable documentation or coding errors. Inaccurate or incomplete documentation leads to undercoding, delays, and lost revenue. Besides, healthcare staff who work in a non-AI-empowered environment spend hours on repetitive tasks like data entry, charge capture, and prior authorizations.
