PSS World Medical has announced that it has sold a portion of its shares of athenahealth, Inc., a Watertown, Mass.-based provider of Internet-based IT and business management services to physician practices.
The Jacksonville, Fla.-based distributor of medical products and inventory management systems to physicians and elder care providers had made a $22.5 million equity investment in athenahealth last July, capturing about 1.5 million, or 5 percent, of the company's outstanding shares. In a short statement released Wednesday, the company said it is still committed to investing in the partnership.
"The athenahealth product is a great fit for our customers, especially in this era of declining physician incomes," PSS Chairman and CEO David A. Smith said. "We invested several million dollars in training, education and roll-out for this long-term relationship that is now offset by the partial monetization of our stock holdings."
Through its July investment, PSS' Physician Sales & Service branch has been marketing athenahealth's Web-based practice management, billing and electronic medical record solutions to the physician market.
Founded 11 years ago by Jonathan J. Bush Jr. - a cousin of President George Bush - and Todd Park, athenahealth made a splash in the stock market last September when its initial public offering of common stock opened at $18 a share and increased 97 percent, to $33.50, on its first day.