Two major health IT vendors are getting closer than ever before.
Chicago-based Allscripts is set to acquire McKesson’s hospital and health system IT business, Enterprise Information Solutions. The deal is for $185 million in cash and is set to close in the fourth quarter of this calendar year.
Through the acquisition, Allscripts will obtain the San Francisco company’s Paragon EHR; lab analytics and blood bank; revenue cycle solutions (STAR and HealthQuest); and content management solution (OneContent).
Going forward, the Chicago vendor will continue offering the Paragon EHR and rev cycle solutions to small hospitals. Its Sunrise EHR will be the platform for larger hospitals and health systems.
The amalgamation of Paragon and Sunrise clients will double the number of Allscripts’ hospital clients in the U.S.
In a statement, Allscripts CEO Paul Black noted:
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Adding these assets to our Allscripts existing portfolio enables us to better serve our clients, increase our scale and further drive our investment in innovation. This transaction is expected to directly benefit our existing clients and our shareholders, as well as the Enterprise Information Solutions clients and team members we’ll welcome to our family. … Today’s announcement is a proactive and strategic measure to maintain Allscripts’ long-term leadership and position Allscripts for continued growth.
John Hammergren, chairman and CEO of McKesson, also expressed his thoughts on the deal:
We have selected a company that can serve the long-term interests of our customers and has the experience and capabilities to deliver value through its population health, precision medicine, consumer and care management solutions. The conclusion of this process demonstrates our commitment to support the success of our hospital customers and provide growth opportunities for Enterprise Information Solutions employees.
It’s been a fairly busy year for Hammergren’s organization. In March, it officially formed a new IT company with Change Healthcare Holdings. The name of the new venture? Change Healthcare. The deal combined the majority of McKesson Technology Services’ businesses with Change Healthcare Holdings.
In April, it completed its acquisition of CoverMyMeds, a maker of technology to automate medication prior authorizations for pharmacies, prescribers, payers and pharmacy benefits managers.
Photo: maxsattana, Getty Images
