Publicly traded physician and hospital software vendor Allscripts will go private and subsequently divest non-core, underperforming units, says mergers and acquisitions specialist John Osberg, managing partner at Informed Partners LLC, a Marietta, Ga.-based consulting firm. “You can’t go back once this is started,” he adds. “There will be buyers; it’s just a matter of the price.” Osberg also warns that moves in the U.S. House to halt the electronic health records meaningful use program need to be taken seriously.

Allscripts has reportedly received first-round bids from three equity firms, and Osberg says there will be more suitors. He believes certain assets may be deemed as non-core pieces of Allscripts, such as the claims clearinghouse and practice management/electronic health records software it got from Misys, as well as some inpatient hospital applications from the Eclipsys side of the business, will generate interest in the buyer’s arena. “Getting market share will be an important consideration to companies buying assets.”

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