Community hospital software vendor Computer Programs and Systems fills several gaps in its technology and services portfolios under a definitive agreement to acquire Heartland, a rural and critical access hospital software firm, for $250 million.

Both companies offer a suite of clinical and administrative/financial software. But Healthland brings its Rycan suite of revenue cycle management software that includes best-of-breed claims processing and denial management software, says Boyd Douglas, president and CEO at CPSI. Healthland also brings its American HealthTech electronic health record for 3,300 post-acute care facility customers, such as long-term care and skilled nursing facilities, which are new markets for CPSI.

Further, CPSI with 650 hospital clients will pick up the 350 hospitals that Healthland serves, and 275 other hospitals that are Rycan customers. The deal also expands CPSI’s business opportunities for its TruBridge business, consulting and outsourced IT services lines, as Rycan will become part of TruBridge.

Also See: Two Vendor Acquisitions Further Consolidate HIT Field

CPSI will support Healthland’s legacy Classic hospital information system—used by about 100 hospitals—for at least two years, and will give clients two years of notice if it decides to sunset Classic, Boyd pledges. CPSI will support and invest in Healthland’s core Centriq hospital information system for at least seven years. Centriq and CPSI’s Thrive hospital information system are both certified for Stage 2 of the electronic health records meaningful use program, and Boyd also pledges that both systems will become certified under Stage 3.

To date, Healthland’s customer base is very early into preparations for accountable care and value-based reimbursement, with many clients not yet starting to use analytics and population health management software, and getting those clients ready is another business opportunity for CPSI, Boyd says. Chris Bauleke, president at Healthland, will continue to lead the company.

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