Allscripts has entered into an agreement to acquire McKesson Corporation’s hospital and health system IT business, Enterprise Information Solutions for $185M in cash. The Enterprise Information Solutions portfolio includes Paragon (EHR solution); STAR and HealthQuest (Revenue Cycle solutions); Lab Analytics and Blood Bank; and OneContent (Content Management solutions).
For Allscripts, the acquisition further advances Allscripts strategy to offer the most comprehensive, high performing health information technology and solutions. “Adding these assets to Allscripts existing portfolio enables us to better serve our clients, increase our scale and further drive our investment in innovation,” said Allscripts Chief Executive Officer Paul M. Black in a statement. “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. Allscripts is a critical strategic partner to thousands of healthcare organizations and our highest priority is to successfully meet their highly complex needs of today and in the future, as we enable them to lead the change to smarter care.”
Future Plans for Paragon EHR
As part of the acquisition, Allscripts will continue to invest in and continue to offer Paragon as the integrated EHR and revenue cycle management solution for the small hospital market segment, while Allscripts Sunrise will continue as the primary platform for larger institutions, typically with highly complex service line needs. After the proposed transaction closes, the combination of Paragon and Sunrise hospitals will double Allscripts current EHR hospital client count in the United States.
The acquisition is expected to close in early Q4 17.