Healthcare information system developer Eclipsys has entered into an agreement to acquire practice management software developer MediNotes of West Des Moines, Iowa, for a purchase price of approximately $45 million.
In addition to its Web-based practice management applications, MediNotes also has a deployed base of electronic medical record (EMR) systems, according to the Atlanta-based Eclipsys.
The acquisition is expected to bolster the presence of Eclipsys in the clinic and physician practice markets.
Eclipsys has tendered a $45 million offer, comprised of 39 percent cash and 61 percent common stock, and expects the transaction to close within 30 days, following satisfaction of customary conditions.
R. Andrew Eckert, Eclipsys president and CEO noted that a number of forces are combining to make practice management/EMR applications one of the fastest-growing markets in healthcare information technology today.
“Studies have shown that over two-thirds of surveyed physicians in small to mid-sized practices do not yet have an EMR solution, and all of them plan to have one within the next two years,” Eckert noted. “And almost a quarter of practices with an existing solution report they're planning to replace it soon. So there's a significant market opportunity here for both Eclipsys and our clients.”
Eclipsys has traditionally focused on providing information software, clinical content and professional services for hospitals and hospital-based health systems.
However, a growing number of specialty and smaller physician practices have sought a cost-effective way to deploy EMR and practice-management technology; in addition, healthcare systems are seeking ways to improve care coordination and expand relationships with loosely affiliated physicians.
Once completed, the acquisition of MediNotes will expand, but not replace, the current Eclipsys solution portfolio, the company said.
“The MediNotes Clinician solution suite —which will be rebranded — will complement our existing Sunrise Ambulatory Care outpatient clinic solution to meet the needs of physician practices, whether tightly aligned or loosely affiliated. The MediNotes Clinician applications will be joining other Eclipsys solutions comprising our comprehensive community portfolio, such as our patient and clinician portals,” Eckert said.