EHR action: Allscripts acquires Practice Fusion, expands footprint in small/ambulatory practices

A significant EHR acquisition kicks off an action-packed week. Announced today by leading EHR Allscripts is their acquisition for $100 million of independent practice EHR Practice Fusion. Allscripts, which has been usually in the top five US EHRs (Kalorama April 2017 survey), vastly expanded its hospital market share with August’s acquisition of #2 McKesson‘s health IT business and with this would be ranked just behind EHR leader Cerner. In acute care settings, Epic and Cerner dominate with 25 percent of the market each with Allscripts/McKesson far behind #3 Meditech (KLAS April 2017). 

Practice Fusion, one of the pioneers in the small practice/ambulatory EHR starting with a basic free, ad-paid model in 2005, has 30,000 ambulatory sites serving about 5 million patients each month. In the Allscripts view, they will now be able to offer “last mile” reach to the under-served clinicians in small and individual practices” and close gaps in care. Allscripts President Rick Poulton noted in the statement that “We believe this transaction will directly benefit Practice Fusion clients, who will now have access to Allscripts solutions and services. We look forward to welcoming Practice Fusion team members to our family.” which leads one to believe that the Practice Fusion name will be sunsetted. Allscripts release and Healthcare IT News

From being the leader in small practice EHRs, Practice Fusion found the last few years difficult as competition expanded into their segment, from eClinical Works, drchrono, athenahealth, and NextGen to small practice packages from Epic and Cerner.

It should be noted that Practice Fusion in 12 years went through 13 funding rounds, raising almost $158 million from a long list of VC luminaries such as Kleiner Perkins, Artis Ventures, Founders Fund, and Qualcomm Ventures (Crunchbase). However, it disappointed its investors and Wall Street, which expected two years ago a $1.5 billion IPO. The $100 million from Allscripts is all cash and the price is “subject to adjustment for working capital and net debt”–an exit which was surely not the sugarplum in the eyes of its 2014 and prior  investors. CNBC

DrChrono and Sermo’s ‘Blue Blazes’ moments

[grow_thumb image=”http://telecareaware.com/wp-content/uploads/2013/08/blue-blazes.jpg” thumb_width=”150″ /]Neil Versel in his personal blog Meaningful HIT News notes meaningful lapses in accuracy and good communications taste from two reputable companies targeted to US medical professionals. DrChrono is a mobile ambulatory EHR tweeting about ‘cashing in’ on the HITECH Act–the program that rewards practices for achieving stages of Meaningful Use with EHRs. Sermo is a physician social networking platform that has staged a contest called ‘The Pro Football Injury Challenge’  where one will go ‘head-to-head’ with other doctors in ‘making predictions about how injuries will affect pro athletes this season.’ This Editor felt in her comments below the article that this promotion’s communication crossed the line into, on the usual two-second read, a message that it is OK to ‘play for glory’ and win prizes out of players’ real pain, injury and career disaster–a misbegotten effort to gamify real-world medical situations ostensibly for learning. Yes, both have sound messages at the core, but how they were communicated…regrettable. Both DrChrono and Sermo are nominated for ‘Blue Blazes’ because, to paraphrase Neil, ‘what are their marketers thinking?’ What do you think? And this Editor would be more than open to comments from representatives of these two companies. DrChrono and Sermo, what are you thinking?

Editor’s Update: Sermo has provided an important response and clarification blazingly fast in their blog here. (more…)