Allscripts Healthcare Solutions (NASDAQ: MDRX) is back in buying mode. The healthcare technology company announced two deals back in August 2017, picking off McKesson‘s (NYSE: MCK) hospital and health IT portfolio for $185 million, and then NantHealth‘s (NASDAQ: NH) electronic health record (EHR) assets for an undisclosed price.
This time, the target is Practice Fusion, a Silicon Valley startup focused on creating affordable certified cloud-based EHR systems for small, independent physician practices. As small as that market may seem, the company now supports 30,000 ambulatory practices and 5 million patient visits per month.
The deal is a strategic one for Allscripts, following the close of the McKesson transaction. In that deal, the company added Paragon, an EHR company geared toward the small hospital market, as well as STAR and HealthQuest (revenue cycle solutions); Lab Analytics and Blood Bank; and OneContent (content management solutions).
Practice Fusion’s EHR is expected to complement and round out Allscripts’ exisint ambulatory clinical portfolio, providing “last mile” reach to clinicians in small and solo practices. Its backers included Practice Fusion’s backers included Industry Ventures, Artis Ventures, Longitude Capital, OrbiMed, Kleiner Perkins Caufield & Byers and Qualcomm Ventures.