Electronic Health Records

Selection & Replacement News

McKesson to Sell Several Ambulatory EHR Products to e-MDs

The combination of e-MDs and McKesson ambulatory EHR technology will impact more than 55,000 providers.

By Kyle Murphy, PhD

- Several ambulatory EHR technologies developed by McKesson will soon become the property of fellow EHR vendor e-MDs, the latter announced midweek.

Ambulatory EHR vendors reach product acquisition agreement

The ambulatory EHR, practice management, and revenue cycle management company reached an agreement with McKesson Business Performance Services to acquire several of its ambulatory EHR software offerings.

"The McKesson team supporting these products is passionate about the same thing we are — helping doctors maintain focus on the patient,” e-MDs CEO Derek Pickell said in a public statement. "All of us at e-MDs look forward to aligning this team with ours to bring e-MDs’ full suite of solutions to thousands of new providers across the country."

While details about the deal are scarce, the e-MDs announcement does mention six products in particular that will become part of its health IT portfolio — McKesson Practice Choice, Medisoft, Medisoft Clinical, Lytec, Lytec MD, and Practice Partner.

Following the successful closing of the deal, e-MDs will be the EHR vendor partner for a projected 55,000 healthcare providers.

Both EHR companies appear keen to address potential concerns that the agreement has likely raised for affected clients.

"e-MDs is the perfect fit for these assets because it has award-winning technology that is ideally suited to this customer base,” McKesson Business Performance Services SVP & GM Scott Sanner added.

According to the financiers behind the deal, the end-result should strengthen the standing of e-MDs in the ambulatory EHR market.

"This acquisition is key to both our growth and diversification strategies," George Kase, Partner with Marlin Equity Partners, maintained. "The purchase is in line with our strategy to complement organic growth by making selected strategic acquisitions. It also offers economies of scale allowing us to extend the e-MDs brand into new areas not previously available."

Initial coverage of the acquisition agreement speculates that it presages McKesson's ultimate departure from the ambulatory EHR space. However, yesterday's announcement does not specify whether the company has agreed to offload all its ambulatory EHR assets.

Two McKesson ambulatory EHR products in particular were not listed — InteGreat EHR and McKesson Practice Complete. Integrate is a cloud-based platform marketed to physician practices with 10 or more providers.

For those questioning the future of the company, the Herald Banner is reporting new consolidation and expansion plans for McKesson in Texas. The state invested $9.75 million via a Texas Enterprise Fund grant to entice McKesson to ensure its role as a major employer.

"I am proud that McKesson has chosen to expand their operations in the Lone Star State and create nearly a thousand new jobs," said Governor Greg Abbott. “This expansion is yet another testament to the power of Texas’ low-tax, low-regulation economic climate that continues to attract industry leaders, innovators, and job creators from around the globe. I am confident McKesson’s leadership in the pharmaceutical and healthcare technology sectors will serve as an invaluable contribution to the Texas economy."

The San Francisco-based company has purchased a 525,000-square-foot office building office building as its expansion site, a facility that will include work on health IT.

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