RALEIGH, NC – One company’s effort to streamline its product offerings has helped another flesh out its portfolio.
Misys Healthcare concluded a troubled year on July 22 when it announced the sales of two outlying business units. The British banking and healthcare software firm, whose healthcare arm is based in Raleigh, N.C., sold its diagnostic imaging business to San Francisco-based Vista Equity Partners and its computerized patient records business to QuadraMed of Reston Va., netting about $414.5 million in the transactions.
Quadramed, who picked up the San Bernardino, Calif.-based CPR for $33 million in cash, hailed the deal as an important addition to its care-based revenue cycle solutions.
“Adding the CPR product to QuadraMed’s suite of healthcare solutions is a key step in our plan to accelerate QuadraMed’s growth while delivering on our care-based revenue cycle strategy,” QuadraMed CEO Keith Hagen said in a statement.
“As a result of this acquisition, QuadraMed will be positioned to support the clinical information systems’ needs of large complex hospitals and healthcare delivery systems, particularly those focused on full clinical integration, clinical decision support and Computerized Physician Order Entry (CPOE).”
“As a fully integrated clinical information system with a multi-entity patient-centric database, closed-top medication management, integrated laboratory and radiology management systems and data warehouse capabilities, this product expands the market for QuadraMed to encompass the largest and most complex healthcare delivery systems worldwide,” Hagen added.
Misys officials say the sales allow the company to focus on software for physician’s offices.
“We’re focusing on a segment… which has tremendous growth ahead of it,” said Vern Davenport, executive vice president and general manager of Misys Healthcare Systems. “Our strength is in that ambulatory market space.”
The two hospital-based units being sold “are great businesses that enjoy strong customer support,” he added. “Fundamentally, we could not invest properly in all of the business we were in … and so it’s pure strategy to put those assets in the hands of other owners.”
Davenport said both deals allow for Misys Healthcare to work with Vista and QuadraMed to promote and sell the Misys EMR solution.
He said the company would likely enter into more partnerships in the future as it works to improve its clinical application capabilities for smaller physician practices.