Chicago-based Allscripts, a provider of health IT solutions, entered a definitive agreement to acquire McKesson Corp.'s Enterprise Information Solutions.
Here are five things to know.
1. Allscripts plans to purchase San Francisco-based McKesson's hospital and health system IT business for $185 million in cash, "subject to adjustment for net debt and working capital."
2. With the acquisition, Allscripts will move forward its "strategy to offer the most comprehensive, high performing health information technology and solutions," while McKesson "will have furthered its focus as a global leader in healthcare supply chain management solutions," the companies said.
3. EIS includes EHR solution Paragon; revenue cycle management solutions STAR and HealthQuest; Lab Analytics and Blood Bank; and OneContent solutions.
4. The companies said Allscripts will still offer Paragon to small hospitals as an integrated EHR and revenue cycle management solution, while Allscripts Sunrise, which offers a suite of EHR solutions, will target larger institutions. They noted the deal will ultimately result in the doubling of Allscripts current U.S. EHR hospital client count due to the combination of Paragon and Sunrise hospitals.
5. Allscripts and McKesson expect the transaction to close early in the fourth quarter of this calendar year.