NASHVILLE, Tenn.–(BUSINESS WIRE)—HealthStream (Nasdaq: HSTM), a leading healthcare technology platform focused on workforce solutions, announced today the acquisition of Virsys12, a healthcare technology company specializing in provider data management for payers and health plans, including onboarding, credentialing, and network management. This acquisition enhances HealthStream’s existing provider data management and credentialing solution for payers and health plans, Network by HealthStream™, launched 14 months ago, which is part of its comprehensive, market-leading Credentialing application suite.
As of 2025, the U.S. is home to around 1,200 health and medical insurance companies, commonly referred to as “payers” in the healthcare industry. These organizations require robust credentialing software to efficiently manage the complex tasks of verifying provider qualifications, enrolling them in insurance networks, and maintaining those networks at scale. Virsys12’s V12 Enterprise® application suite addresses these needs and is currently in use by payers and providers across nine states. At the heart of the solution is an intelligent provider data engine that automates data ingestion, cleansing, and monitoring—serving as the single source of truth for provider records across integrated systems.
“As Virsys12’s founder, I’m thrilled to join HealthStream and take V12 Enterprise® to its next stage of growth in supporting both payers and providers,” said Tammy Hawes, CEO of Virsys12. “HealthStream brings unmatched reach, the powerful hStream Platform, and a strong culture of innovation.”
V12 Enterprise® strengthens HealthStream’s ability to expand its credentialing offerings for payers nationwide. Recognized by leading analysts Gartner and IDC in their Market Glance for Payers, the suite is seen as a top-tier solution. Additionally, V12 Enterprise® is backed by the highest level of security certification in the industry—HITRUST r2—matching the standards achieved by HealthStream’s own CredentialStream®, Credentialing Hub™, and Network by HealthStream™.
Virsys12’s V12 application suite, built with a scalable, API-first architecture, will enable seamless and efficient integration into HealthStream’s ecosystem via its hStream Platform. This integration will center on provider data management, combining Virsys12’s intelligent provider data engine with HealthStream’s single verified provider record to create a robust foundation for credentialing, privileging, enrollment, and network management. Additionally, Virsys12’s implementation and managed services will be incorporated into HealthStream’s broader Professional Services offering, ensuring payers can fully maximize their technology investments by streamlining workflows and leveraging the full capabilities of the solutions.
“I’m pleased to welcome Virsys12’s customers and team members to HealthStream,” said Robert A. Frist, Jr., Chief Executive Officer of HealthStream. “V12 Enterprise is a valuable addition to our credentialing suite as we continue to expand our capabilities to serve payers across the healthcare industry. Both Virsys12 and HealthStream share a commitment to reducing administrative burdens for payers and providers through a single verified provider record and intelligent automation of key processes—and we’re both well on our way to delivering on that vision.”
Transaction Details:
HealthStream acquired all outstanding equity of Virsys12 for up to $17 million in cash, with the full amount contingent on the achievement of earnout milestones and subject to a post-closing working capital adjustment.
About HealthStream
HealthStream (Nasdaq: HSTM) operates the healthcare industry’s largest ecosystem of platform-based workforce solutions, helping healthcare professionals focus on what matters most—delivering high-quality patient care. To learn more, visit http://www.healthstream.com or call 615-301-3100.
This press release contains forward-looking statements (i.e., statements not solely based on historical facts), including expectations regarding HealthStream’s financial performance for 2025 and its quarterly dividend policy. These statements involve risks and uncertainties and are based on current management beliefs, assumptions, and available information. They are provided under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
HealthStream cautions that these forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ significantly from those expressed or implied. Such factors include economic downturns, shifts in U.S. policy, challenges within the healthcare industry, trade and tariff developments, inflation, geopolitical instability, and legal or contractual constraints that may impact the continuation of our dividend policy. The Board of Directors may alter, suspend, or cancel dividend declarations or payments at any time, as deemed necessary or appropriate.
Additional risks are detailed in HealthStream’s Annual Report on Form 10-K for the year ended December 31, 2024 (filed February 28, 2025), its Quarterly Report on Form 10-Q for the six months ended June 30, 2025 (filed August 7, 2025), and other filings with the Securities and Exchange Commission. As a result, forward-looking statements should not be considered guarantees of future performance. Many influencing factors are beyond HealthStream’s control, and readers are advised not to place undue reliance on these statements, which reflect management’s views as of the date of this release. HealthStream assumes no obligation to update or revise any forward-looking statements.
Contacts
Mollie Condra, Ph.D.
Head, Investor Relations & Communications
HealthStream
(615)-301-3237
mollie.condra@healthstream.com
