Free EHR, EHR and Healthcare IT Newsletter Want to receive the latest updates on EHR, EMR and Healthcare IT news sent straight to your email? Get all the latest EHR News for FREE!

Quality Systems, Inc. Announces Agreement to Acquire HealthFusion Holdings, Inc.

Acquisition to accelerate cloud-based development and delivery of QSI/NextGen Healthcare core applications and elevate commitment to ambulatory services sector with addition of clients

IRVINE, Calif.–(BUSINESS WIRE)– Quality Systems, Inc. (NASDAQ: QSII), announced today an agreement to acquire HealthFusion Holdings, Inc. (HealthFusion) for $165 million plus potential additional contingent consideration of up to $25 million.

Based in San Diego, Calif., HealthFusion is a privately held developer of web-based, cloud computing software for physicians, hospitals and medical billing services. HealthFusion’s 100 percent cloud-based MediTouch® platform is currently used by over 3,000 physician practices, hospital ambulatory centers and medical billing services (totaling more than 6,000 subscribers). The company has historically achieved meaningful double-digit annual revenue growth rates, with a recent annualized revenue pace exceeding $30 million. The contingency for full payment of the earn-out is based on the generation of $43 million of HealthFusion product revenues during calendar 2016.

The transaction is subject to customary closing conditions and is expected to be completed during the Company’s current fiscal year, which ends March 31, 2016. Quality Systems expects this transaction to be accretive to its non-GAAP earnings in the first full year following the acquisition.

The Company has secured $200 million in fully committed financing from J.P. Morgan and U.S. Bank. At closing of the transaction, the Company expects to fund approximately $115 million of the consideration via this credit facility and the remainder through excess cash on hand.

“The acquisition of HealthFusion is another example of our strategy to expand both client base and solution capabilities in our ambulatory market. We look forward to sharing this acquisition as a part of our broader strategy with our client base at our annual User Group Meeting in Las Vegas starting this Sunday, November 1,” said Rusty Frantz, president and chief executive officer at Quality Systems, Inc.

“HealthFusion brings an extremely intuitive, fully mobile, cloud-based solution that affords smaller groups of physicians and other providers a clean EHR experience within a fully integrated suite of solutions for their practice. Over time, we will focus on expanding the platform to satisfy the needs of practices of increasing size and complexity. We will also look to provide some of our broader service capabilities to the HealthFusion client base,” Frantz explained.

Dr. Sol Lizerbram, HealthFusion chairman, added: “We believe our SaaS-based healthcare technology products will prove beneficial to Quality Systems’ NextGen Healthcare service offering as the Company advances its cloud solutions capabilities. This acquisition presents significant opportunity to capitalize on the joint successes both companies have achieved to date in the ambulatory market segment.”

J.P. Morgan Securities LLC is acting as financial advisor and Latham & Watkins LLP is serving as legal counsel to Quality Systems. TripleTree is acting as exclusive financial advisor and Wilson Sonsini Goodrich & Rosati is serving as legal counsel to HealthFusion.

About HealthFusion

Founded in 1998 by three entrepreneurs including two primary care physicians, San Diego, Calif.-based HealthFusion supports over 6,000 ambulatory subscribers in more than 30 specialties spread across all 50 states and employs 140. HealthFusion develops web-based, cloud computing software for physicians, hospitals and medical billing services. HealthFusion’s fully integrated solution includes MediTouch EHR (Electronic Health Record and Patient Portal) and MediTouch PM (Practice Management and Claims Clearinghouse).

MediTouch EHR was designed for use on mobile tablets such as the iPad, and offers a unique array of features that facilitate adoption of EHR technology. Each integrated module of the MediTouch platform natively supports the iPAD® and the company is a certified Apple Developer. All MediTouch modules function seamlessly together including the EHR, medical billing, practice management, collections, patient portal, and clearinghouse.

To learn more visit HealthFusion.com or follow HealthFusion on Facebook, Twitter and YouTube.

About Quality Systems, Inc.

Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare subsidiary develop and market computer-based practice management, electronic health records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information.

October 30, 2015 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Vitera Healthcare Solutions Announces Acquisition of SuccessEHS

Leading ambulatory EHR/PM provider accelerates growth strategy and further supports the needs of today’s medical providers

Tampa, Florida – June 17, 2013 – Vitera Healthcare Solutions, the nation’s premier provider of ambulatory electronic health records (EHR) and practice management software and services, today announced the acquisition of SuccessEHS. The acquisition results in an expanded suite of services that helps office-based physicians and Community Health Centers (CHC) improve operational efficiencies, generate revenue and enhance patient health outcomes.

Pending customary regulatory approval, the Birmingham, AL-based SuccessEHS will become a division of Vitera.

SuccessEHS provides EHR, practice management, electronic dental record, dental imaging and revenue cycle management solutions, and prides itself on providing exceptional implementation services, training and support to its physician practices and CHCs. Due to the strong demand for its services, the company has doubled in size over the last two years.

“Our acquisition of SuccessEHS supports our strategy for growth in the changing healthcare marketplace and is indicative of the tremendous progress Vitera has made over the past 18 months,” said Matthew Hawkins, CEO of Vitera. “The acquisition is a natural progression of Vitera’s strategic intent to be the leader in ambulatory healthcare information technology. We are committed to providing the solutions and services our customers need to succeed in this new era of healthcare.”

With the addition of SuccessEHS’s customer base, Vitera will now serve more than 10,500 medical organizations and over 415,000 medical professionals nationwide — including more than 85,000 physicians. The acquisition expands Vitera’s customer base of CHCs, including rural health centers, student health centers, HIV/AIDS clinics and Federally Qualified Health Centers (FQHC), as well as expands Vitera’s expertise in delivering solutions that meet the unique needs of these customers.

“This acquisition is going to bring out the best of both organizations,” said W. Sanders Pitman, CEO of SuccessEHS. “This is great news for our employees and for our customers. It allows us to build on Vitera’s longevity and growing strength in the industry, as well as the impressive infrastructure they’ve put in place to provide medical practices and CHCs with innovative EHR and practice management solutions. This helps us better realize our original mission — to make our customers successful.”

Leveraging its 30 years’ experience in a dynamic healthcare market and its large, loyal customer base, Vitera recently introduced new products — including Vitera Stat and Vitera Intergy Mobile — to help its customers decrease costs, increase reimbursements and revenue, save time and expense with regulatory reporting, and improve patient outcomes and population health.

Hawkins added, “We work every day to ensure our clients have the proven technology and quality support they need to better manage their practices, as well as access to the kind of industry insight that only comes from decades of dedicated service to practices like their own.”

Raymond James Health Care Investment Banking Group served as exclusive financial advisor to SuccessEHS in the transaction. Jefferies Finance LLC and BMO Capital Markets have agreed to provide the debt financing in connection with the transaction.

About Vitera Healthcare Solutions
Vitera Healthcare Solutions provides end-to-end clinical and financial technology solutions so physicians and medical professionals can work with patients instead of paperwork. Serving more than 400,000 healthcare professionals including 80,000 physicians, Vitera Healthcare Solutions provides electronic health records and practice management systems, processes 33 million transactions and 2 million e-prescriptions monthly, and serves several specialties including primary care, OB/GYN, pediatrics, cardiology and orthopedics in all sized practices and Community Health Centers. Physician focused and patient centric, Vitera Healthcare Solutions is based in Tampa, FL. For more information, visitwww.viterahealthcare.com or call (877) 932-6301. Follow Vitera Healthcare Solutions on Facebook, http://www.facebook.com/ViteraHealthcare, and Twitter,http://twitter.com/#!/ViteraHealth.

 

About SuccessEHS
SuccessEHS is a nationally acclaimed vendor providing Electronic Health Record (EHR) and Practice Management solutions with Integrated Medical Billing Services. SuccessEHS also provides Electronic Dental Record (EDR) and Dental Imaging solutions. Founded in 1995, SuccessEHS established itself as a leader in the emerging practice management applications market by delivering an innovative blend of clinical, operational and financial software paired with a suite of specialized integrated success services.

June 17, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.