Health IT

CPSI enters post-acute EHR market with Healthland buy

The $250 million deal gives EHR vendor CPSI an entrée into the post-acute health IT market because Healthland Holdings owns American HealthTech.

Just in time for Thanksgiving comes more consolidation in the electronic health records market.

Wednesday, Computer Programs and Systems Inc., which serves rural and community hospitals, announced a $250 million acquisition of Healthland Holdings, a company with roots in the rural market.  The cash-and-stock deal gives CPSI an entrée into the post-acute health IT market because Healthland owns American HealthTech, a Ridgeland, Mississippi-based company it bought in 2013.

Healthland, known as Dairyland Healthcare Solutions prior to 2008, is headquartered in Minneapolis, but retains a presence in rural Glenwood, Minnesota, where it was founded in 1980.

Healthland also includes a revenue-cycle management subsidiary, Rycan Technologies, with offices in another small Minnesota town, Marshall. Rycan’s software-as-a-service offerings mesh with publicly traded CPSI’s TruBridge unit, which provides business, consulting and managed IT services, the acquiring company said.

“Healthland’s history tracks a very similar course to that of CPSI, as we both have over 30 years of experience in the healthcare IT space, and we share a strong commitment to the improvement of community healthcare,” Boyd Douglas, president and chief executive officer of Mobile, Alabama-based CPSI, said in a statement. “As the healthcare industry transitions to value-based reimbursement, our combined solutions will connect communities, patients and providers to facilitate more effective population health management, better patient engagement and the advancement of quality and care coordination.”

CPSI said it would continue to support Healthland’s Classic and Centriq EHR platforms, the latter for at least seven years. CPSI also promised honor Healthland’s recently announced commitment to Healthland Classic for at least two more years.

CPSI also shuffled management in the wake of the deal. Chairman David Dye will take on an extra role, chief growth officer, and TruBridge President Chris Fowler was given the additional title of COO of CPSI, which includes responsibility for integrating Healthland. Matt Chambless has been promoted to CFO.

The combined company is on track for $300 million in revenue for 2015, according to CPSI.

 

Shares0
Shares0