Minneapolis-based ABILITY Network, a major Medicare transactions processing vendor, will acquire claims clearinghouse MD On-Line for an undisclosed sum.

The deal will give ABILITY, which primarily serves hospitals and post-acute facilities, a much larger presence in the ambulatory arena.  Parsippany, N.J.-based MD On-Line offers a suite of claims clearinghouse services to more than 90,000 providers of various sizes, but mostly smaller practices with under 10 physicians. The company connects to more than 2,200 insurers and also sells practice management and electronic health records software.

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