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September 21, 2023

HealthStream buys California assessment company

HealthStream buys California assessment company

Geert De Lombaerde | Nashville Post

500,000+ nurses have worked with tool

HealthStream has paid $4 million for a California company that markets clinical assessment tools for nurses, adding to its lineup of workforce development services.

The deal by downtown-based HealthStream for Performance Management Services Inc., which is based in Orange County, also includes $500,000 in incentive payments that can be earned in the next two years. PMSI’s video-driven product, which is branded as the Performance Based Development System, has in the past 25-plus years assessed approximately 500,000 nurses in more than 500 hospitals.

“I would like to extend a warm welcome to PMSI’s clients and employees that will be joining the HealthStream family,” said HealthStream CEO Bobby Frist. “We look forward to offering this important clinical assessment system to health care organizations as we continue to add products and capabilities to our innovative workforce development suite.”

HealthStream’s workforce segment accounted for $41.3 million of the company’s $54.1 million in revenues during the first quarter of this year and posted operating margins of 25 percent. The company’s leaders say PMSI’s offerings can improve the tracking of lessons taken on their Learning Center and Competency Center platforms and help hospitals more quickly bring on board nurses.

Shares of HealthStream (Ticker: HSTM) ended Thursday trading at $26.52. Year to date, they’ve climbed 20 percent.

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