TriZetto Going After Big-Name Customers, Red Ink Narrowing

TriZetto Going After Big-Name Customers, Red Ink Narrowing

By VITA REED

TriZetto Group Inc., the Newport Beach-based healthcare technology company, is going after large healthcare organizations as a way to grow revenue and turn its first profit.






“In the second quarter, we signed new contracts with a total value of $74.1 million, including contracts with UnitedHealth Group Inc.,” said Jeffrey Margolis, Tri-Zetto’s chief executive, in a recent financial release.






TriZetto didn’t give specifics but said the pacts with United-Health were the largest deals signed in the second quarter. Minnetonka, Minn.-based UnitedHealth counted sales of $23 billion last year. Getting larger customers “was one of the things our shareholders asked of us,” Margolis said. “They wanted us to move up-market.”






Up to now, TriZetto has mainly attracted smaller healthcare providers. The company helps health plans, benefits administrators and doctors manage data by providing software and developing Web sites for insurers and provider groups. Clients pay a monthly fee to the company.






Going after larger clients has “pluses and minuses,” said David Francis, a healthcare technology analyst with Jefferies