Physician software vendor AdvancedMD Software Inc. has expanded its client base and product line by acquiring PracticeOne, which sells complementary technology. Acquisition terms were not disclosed.

Salt Lake City-based AdvancedMD sells Web-based practice management software for small- to-mid-sized physician offices and software for medical billing services. The company also has sold an "EMR lite" document management and imaging system to digitize medical records.

Richland, Wash.-based PracticeOne sells Web-based practice management software and a complete, CCHIT-certified electronic health records system. The company also offers a patient Web portal and mobile access to patient data via iPhone and Blackberry smart phones.

Now, AdvancedMD will integrate its practice management software with PracticeOne's EHR, with the combined product being its core offering supported by the portal and mobile access applications. AdvancedMD will continue to support PracticeOne's practice management customers.

Only 4% of AdvancedMD's clients use its document management-based EHR, which it will support for an undetermined time but no longer sell. PracticeOne's billing service is not part of the acquisition and will continue as a separate standalone company.

AdvancedMD is owned by private equity firm Francisco Partners, which also owns community hospital vendor Healthland and is acquiring hospital vendor QuadraMed Corp. AdvancedMD CEO Eric Morgan, while saying the equity firm's held companies are independently run, acknowledges there could be opportunities with both vendors to offer combined software packages to hospitals and community physicians.

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--Joseph Goedert

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