Health IT

Allscripts will acquire Practice Fusion for $100M

Chicago-based Allscripts has signed an agreement to acquire San Francisco-based Practice Fusion for $100 million in cash. The deal is expected to close in the first quarter of this year.

The year is already off to a busy start in the world of health IT.

Chicago-based Allscripts has signed an agreement to acquire Practice Fusion for $100 million in cash.

Officials anticipate the deal will close in the first quarter of this year.

San Francisco-based Practice Fusion prides itself on its cloud-based EHR platform. The EHR is traditionally geared toward small and independent physician practices. Currently, 30,000 ambulatory practices and more than 112,000 healthcare professionals use the company’s platform.

By gaining access to Practice Fusion’s EHR, Allscripts hopes to reach clinicians in smaller practices.

As Allscripts President Rick Poulton noted in a news release:

By adding Practice Fusion offerings to our portfolio, Allscripts will be further positioned for continued growth and long-term leadership in healthcare. Combined with Practice Fusion, we expect Allscripts to continue to drive innovation in addressing gaps in care, improving clinical outcomes and real-world evidence research. Plus, Practice Fusion’s affordable EHR technology supports traditionally hard-to-reach independent physician practices, and its cloud-based infrastructure aligns with Allscripts’ forward vision for solution delivery.

The deal will also give Practice Fusion’s clients access to Allscripts’ services and solutions.

This has been a busy season for Allscripts.

About five months ago, it bought McKesson’s hospital and health system IT business, Enterprise Information Solutions, for $185 million. Through the acquisition, the Chicago company obtained McKesson’s Paragon EHR; lab analytics and blood bank; revenue cycle solutions (STAR and HealthQuest); and content management solution (OneContent).

About two years ago, sources told Politico that Practice Fusion was putting itself up for sale. At the time, an unnamed source said athenahealth was “high on the list of desired suitors.” Looks like Allscripts scored the deal instead.

Photo: designer491, Getty Images

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