Four years after acquiring CarePort Health, healthcare IT company Allscripts Healthcare Solutions Ltd. (NASDAQ: MDRX) is selling the post-acute patient care business to WellSky Corp. for $1.35 billion.
Allscripts announced its acquisition of CarePort on October 20, 2016, for an undisclosed amount, according to search results in HealthCareMandA.com Deal Database. Allscripts, known for its electronic health record (EHR) business, was looking for solutions to help it navigate the shift in healthcare reimbursement and legislation that was pushing healthcare providers and support services to deliver better outcomes for patients. “Managing post-acute care is now a necessary and integral component of population health strategy,” the company said at the time.
CarePort offered three EHR-agnostic solutions that worked towards those goals. Its CarePort Guide facilitates efficient post-acute care selection; CarePort Connect manages patients across post-acute care settings and CarePort Insights evaluates patient outcomes and post-acute provider performance. Those solutions are now included in Allscripts Data, Analytics and Care Coordination reporting segment and represent approximately 6% of Allscripts consolidated revenues.
The agreed sale price of $1.35 billion represents a multiple of greater than 13x CarePort’s revenue over the trailing 12 months, and approximately 21x CarePort’s non-GAAP Adjusted EBITDA over the trailing 12 months, according to Allscripts.
WellSky, jointly owned by TPG Capital and Leonard Green & Partners, is a global health and community care technology company. This acquisition bolsters its capabilities to manage the acute-care discharge process, track patients across post-acute care settings, apply patient and population-level analytics and still support EHR-based care protocols.
WellSky was formerly known as Mediware Information Systems, Inc. before being rebranded in September 2018. The company was founded in 1980 and has grown to 1,100 employees serving more than 10,000 customer sites worldwide, including hospital systems, blood banks, government agencies, human services organizations, home health providers and hospice agencies. Its CEO, Bill Miller, was previously CEO of OptumInsight at Optum, a subsidiary of UnitedHealth Group (NYSE: UNH).