What: Hearst Corporation is creating Hearst Health, a healthcare information services division that consolidates several Hearst owned Healthcare Information companies. They will now be provided a unified branding message.
Why it matters: Hearst is one of the largest private media companies and owns major newspaper and consumer magazine assets. By investing in its Health Care Information Services unit, Hearst is betting in a sector that has higher growth rates than most consumer media assets.
Hearst Health will be comprehend 5 healthcare-information companies, in addition to an innovation lab and venture fund thought to invest US $75 million in startups in the space first, and another round of US $75 million for the future.
Hearst already holds a majority stake in the division’s companies, but used to lack a unified brand until now. According to a press release published by the New York headquartered company, this presented a challenge when trying to explain Hearst’s healthcare initiatives to clients and employees.
Hearst Business Media touches more people than also Hearst owned ESPN or Cosmo.
The creation of this new division is Hearst’s latest step into healthcare-related business. Two months ago, the company bought 85% stake in Homecare Home-based, maker of software for hospices and in-home medical care providers. Healthcare information has become a chief revenue source for Hearst through its leading companies: FDB (First Databank), Zynx Health, MCG (formerly Milliman Care Guidelines), Homecare Homebase (85 percent stake, as previously announced) and Map of Medicine (internationally). Each year in the U.S., care guidance from Hearst Health reaches more than 75 percent of patients discharged from hospitals, 20 million patient home visits, more than 133 million insured individuals, 1.8 billion retail pharmacy prescriptions and 3.25 billion prescription claims.
Hearst Health provides services used by doctors and other healthcare practitioners who treat 76% of the patients discharged from hospitals. According to Richard Malloch, president and group head of Hearst Business Media, the division’s reach is more widespread than Hearst’s other holdings. “They touch more people than ESPN or Cosmo,” he added.
The announcement continues Hearst’s business media group growth, which includes not only Hearst Health but also the company’s 50% stake in Fitch Ratings. The company’s most profitable group is entertainment and syndication, which includes a 20% ownership in ESPN and a 50% ownership of A&E Networks. Business Media is its’ second.