NextGen to acquire patient platform vendor Medfusion
NextGen Healthcare, a large vendor of ambulatory medical records systems, on Wednesday announced its acquisition of Medfusion, a patient experience platform developer.
Irvine, Calif.-based NextGen reported that it will pay $43 million to purchase Medfusion. That amount, subject to customary adjustments, will be paid in cash at the completion of the acquisition, which is expected to close early next month.
NextGen executives say the acquisition makes sense because of three trends currently impacting the ambulatory care market:
· Patients are assuming increased financial responsibility for their healthcare and are more actively involved in making choices based on both cost and quality.
· High-quality healthcare depends on improved access to care and information.
· Patient experience is driving patient engagement, which experts believe is key to improving health outcomes.
Medfusion’s Patient Experience Platform enables key aspects of patient-provider interactions, using a portal that can run on any device. The platform includes capabilities for patient intake, scheduling and payment capabilities—it’s used by more than 16 million patients today.
“The acquisition of Medfusion will add a best-in-class patient access and engagement capability to NextGen Healthcare’s fully integrated ambulatory platform,” said Rusty Frantz, president and CEO of NextGen.
The acquisition agreement provides for the acquisition of all of the outstanding equity in Medfusion, but it is subject to Medfusion transferring, prior to the closing, its data services business, which is in its infancy and will be transferred out of Medfusion as Greenlight Health Data Solutions.
Earlier Wednesday, Cary, N.C.-based Medfusion announced its plans to create Greenlight Health “to meet the growing need for patient-initiated health data retrieval.”
The newly spun off company will focus on driving data flows for patients, consumers, businesses and organizations “that need ready access to patient-approved data housed across a wide variety of healthcare providers and patient portals.”
Greenlight Health is funded by serial entrepreneur and NCFC/NC Courage owner Steve Malik and will be based in Cary. The company will be staffed by employees from within Medfusion who already support the data services business.