Allscripts to acquire McKesson’s hospital and health system business – Health Care News

on Aug5

4 August 2017 | 9:29 pm

Allscripts is acquiring McKesson’s hospital and health system business in a $185 million deal, the company’s CEO said Thursday.

The all-cash purchase of McKesson’s Enterprise Information Solutions business will bring the company’s EHR, Paragon, and its revenue cycle, lab analytics and content-management solutions under Allscripts umbrella.

“This transaction is a win all around,” Allscripts CEO Paul Black said, adding that it will bring hundreds of new clients to the EHR vendor.

Paragon will be directed at the small-hospital market, the company said, while Allscripts’ Sunrise EHR will continue to be directed at larger hospitals.

“This is by all rights a bolt-on acquisition that helps us achieve scale and value quickly,” said Allscripts president Rick Poulton. “It increases our market share significantly in the inpatient space.”

Just as it did in the second quarter of last year, Allscripts announced record bookings in the second quarter of 2017, Black said during the call. Bookings were $407 million, up 12% from the year-before quarter. Netsmart

Revenue in the quarter was $426 million, up 10% over the same quarter in 2016. The company touted a new contract it signed in the second quarter of 2017—the largest contract since 2011—with a not-for-profit integrated delivery network of six hospitals, a medical foundation, and medical practices.

Allscripts’ strong second-quarter performance comes after a healthy first quarter. In both quarters, research and development was up, with it increasing 11% in the second quarter in an effort to innovate and also to meet regulatory requirements.

As it did in the first quarter of 2017, Allscripts posted a net loss, which hit $154 million in the second quarter, the majority of which came from the company’s equity investment in Nanthealth.

This article first appeared on the website of Crain’s sister publication Modern Healthcare.



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