Health IT Provider HMS Explores Options Including Sale, Sources Say

(Bloomberg) -- HMS Holdings Corp. is exploring options including a sale, as the health-care data and technology provider grapples with the impact of the coronavirus, according to people familiar with the matter.

The Irving, Texas-based company is working with advisers to review alternative strategies, the people said, asking not to be identified because the matter isn’t public. No final decision has been made and it could still opt to remain independent, the people said.

HMS Holdings rose 12% to $27.22 at 9:31 a.m. in New York Monday, giving the company a market value of about $2.4 billion.

Representatives for HMS Holdings didn’t respond to requests for comment.

HMS, founded in 1974, provides data and analytics services that help federal agencies, health-care exchanges, hospital groups and other clients reduce costs, according to its annual report.

Its net income fell 77% year-over-year to $6.6 million in the quarter ended June 30, according to a filing. The coronavirus pandemic hurt revenue and profits in the quarter because of lower volume of work and contracts, it said in the filing. Many U.S. hospitals had to cancel routine visits and elective surgeries during the height of the pandemic.

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