Healthstream Acquires Virsys12, Expanding Its Credentialing Application Solution For Payers And Health Plan Enterprises

HealthStream, a leading healthcare technology platform company for workforce solutions, today announced that it has acquired Virsys12, a healthcare technology company that offers payers and health plans an innovative provider data management suite used for onboarding, credentialing, and network management. With this acquisition, HealthStream expands its existing provider data management and credentialing solution for payers and health plan enterprises, called Network by HealthStream, launched 14 months ago, which is a part of its broader, market-leading Credentialing application suite.

As of 2025, there are approximately 1,200 health and medical insurance companies in the U.S. that are referenced in the healthcare industry as the “payers.” Payers need credentialing software to streamline, secure, and scale the complex process of verifying healthcare providers’ qualifications, enrolling them into insurance networks, and actively managing and maintaining those networks. Virsys12’s V12 Enterprise application suite is currently used by payers and providers in nine states across the U.S. to meet these needs. At the core of Virsys12’s solution is their intelligent provider data engine that automates ingesting, cleansing, and monitoring, and serves as the source of truth for provider records across all applications.

“As the founder of Virsys12, I am excited about joining HealthStream to achieve the next level of growth for V12 Enterprise and support for payers and providers,” said Tammy Hawes, Chief Executive Officer, Virsys12. “HealthStream is unmatched in their reach, the power of their hStream Platform, and their culture and legacy of innovation.”

V12 Enterprise is a premium solution and enhances HealthStream’s ability to market and grow its credentialing business among the nation’s payers going forward. Both Gartner and IDC Market Glance for Payers, two of the foremost technology insights sources, recommend Virsys12’s application suite. Moreover, customers of the V12 Enterprise application have the added assurance that comes with it having earned the industry’s highest level of security via its HITRUST, two-year (r2) certification—the same high level achieved by HealthStream for its CredentialStream application, Credentialing Hub, and Network by HealthStream.

Virsys12’s V12 application suite’s scalable, API-first approach will ensure faster, smoother integration of the newly acquired application suite in HealthStream’s ecosystem through its hStream Platform. The core of this integration will be around provider data management, bringing together Virsys12’s provider data engine and HealthStream’s single verified provider record to deliver a powerful infrastructure for credentialing, privileging, enrollment, and network management. HealthStream will also integrate Virsys12’s implementation and ongoing managed services into its overall Professional Services offering to ensure that payers fully leverage their technology investment, optimizing their workflows and fully utilizing the power of their solutions.

“I would like to extend a warm welcome to Virsys12’s customers and employees that will be joining HealthStream,” said Robert A. Frist Jr., Chief Executive Officer at HealthStream. “Virsys12’s V12 Enterprise application makes a terrific addition to our credentialing application suite as we further build our capabilities to serve payers throughout the healthcare industry. Virsys12 and HealthStream share a vision to reduce the administrative burden on payers and providers by delivering a single verified provider record and intelligently automating key processes around that record—and both are successfully executing on that vision.”

Terms of the Transaction

HealthStream purchased the outstanding equity of Virsys12 for up to $17 million in cash (the full payment of which will require earnout achievement), subject to a post-closing working capital adjustment.

About HealthStream

HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information about HealthStream, visit healthstream.com or call 615-301-3100.

Originally announced October 8th, 2025