Last month, Health Catalyst announced the sale of its Vitalware mid-revenue-cycle business to Med-Metrix for $147 million in cash, a move the healthcare intelligence company says will sharpen its focus on artificial intelligence, analytics, and its core technology platform while strengthening its financial position.

The Salt Lake City-based company plans to use the proceeds, along with existing cash, to repay approximately $160 million in outstanding debt, giving it greater flexibility to invest in AI-driven innovation. CEO Ben Albert described the transaction as an important milestone in the company's ongoing transformation. "This is a big step forward for Health Catalyst," Albert said in a statement. "We are concentrating our business around the areas where we have the deepest conviction."

The divestiture marks another chapter in a period of significant change for Health Catalyst. As Healthcare Innovation reported in December, the company spent 2025 reshaping its leadership team, expanding strategic partnerships, and launching new AI-enabled products while shifting its focus toward profitability and long-term growth. The company also appointed Albert as president and COO ahead of his promotion to CEO, forged an AI partnership with Microsoft, acquired patient engagement company Upfront Healthcare Services, and introduced new AI-integrated analytics offerings.

In the article by Theresa Houck, Healthcare Innovation noted that Health Catalyst was executing "a strategic pivot toward flexible client engagement, steady profitability improvements, and disciplined operational management" as it repositioned the company for its next phase of growth.

Vitalware, a Best in KLAS revenue cycle software business with approximately $37 million in fiscal 2025 revenue, provides software for coding compliance, chargemaster management, charge capture, and price transparency. Med-Metrix said it plans to invest further in the business as part of its technology-enabled revenue cycle management portfolio.

The sale follows Health Catalyst's stronger-than-expected first-quarter 2026 financial results, in which the company reported revenue of $70.8 million and said it was undertaking a "strategic reset" to align the business around its highest-priority technology opportunities.