- Allscripts recently announced it will acquire Practice Fusion EHR in a $100 million cash deal in an effort to further expand its reach into ambulatory care settings.
Practice Fusion and its EHR technology will complement Allscripts existing ambulatory clinical portfolio as a value offering to accommodate under-served clinicians in small and individual physician practices. Established in 2005, Practice Fusion currently supports 30,000 ambulatory practices and assists providers with 5 million patients visits per month.
“By adding Practice Fusion offerings to our portfolio, Allscripts will be further positioned for continued growth and long-term leadership in healthcare,” said Allscripts President Rick Poulton. “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.”
Allscripts and Practice Fusion are expecting to finalize the deal in the first quarter of the 2018 calendar year. Allscripts will fund the purchase through existing secured funds and cash balances.
“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,” said Poulton.
Practice Fusion offered a cost-free, cloud-based EHR platform including customizable templates designed to reduce data re-entry through shortcuts and automated favorite lists. The EHR also provided automatic patient appointment reminders, insurance eligibility confirmations, and HIPAA-compliant electronic faxing through provider tablets.
According to the most recent data provided by Definitive Healthcare, Practice Fusion is one of the top 10 ambulatory EHR vendors by physician practice EHR implementations.
“We believe this transaction will directly benefit Practice Fusion clients, who will now have access to Allscripts solutions and services,” stated Poulton. “We look forward to welcoming Practice Fusion team members to our family. Allscripts highest priority remains to successfully meet healthcare providers’ highly complex needs as we enable them to lead the change to smarter care.”
Practice Fusion EHR is particularly popular among specialists who often struggle to find adaptable, standardized systems capable of meeting the needs of unique patient populations. Cardiologists, endocrinologists, psychologists, and psychiatrists participating in meaningful use are especially likely to use Practice Fusion products to fulfill federal reporting requirements.
In June of 2016, Practice Fusion reached a settlement agreement with the Federal Trade Commission (FTC) following charges the health IT company had mislead consumers about doctor reviews that were publicly posted without informing them of plans to disclose the information.
“Practice Fusion’s actions led consumers to share incredibly sensitive health information without realizing it would be made public,” said FTC Bureau of Consumer Protection Director Jessica Rich. “Companies that collect personal health information must be clear about how they will use it — especially before posting such information publicly on the Internet.”
Consumers and providers generally believed their feedback about Practice Fusion products would remain private. Following the settlement, Practice Fusion revised its email communications with consumers and its section on surveys and ratings to include statements that consumer feedback could be made public.
Allscripts most recent decision to acquire the privately-held Practice Fusion follows a string of acquisitions in 2017.
In August, Allscripts acquired McKesson Corporation’s Enterprise Information Solutions in a deal valued at $185 million.
“This strategic acquisition further advances Allscripts strategy to offer the most comprehensive, high performing health information technology and solutions,” stated the two companies in a joint statement. “Upon close, McKesson will have furthered its focus as a global leader in healthcare supply chain management solutions.”
Through the deal, Allscripts gained the Paragon inpatient EHR solution, the STAR and HealthQuest RCM solutions, and McKesson’s laboratory information system. Additionally, Allscripts gained McKesson’s content management system OneContent.
Later that same month, Allscripts acquired NantHealth’s patient engagement assets after NantHealth released its second quarter financial results showing $70 million in losses.
In addition to selling its patient engagement assets to Allscripts, NantHealth terminated 300 employees. Allscripts purchased NantHealth’s assets using 15 million in NantHealth shares.
These purchases — along with the most recent acquisition of Practice Fusion — are an attempt by Allscripts to further improve its presence in the EHR marketplace.