Dive Brief:
- Computer Programs and Systems Inc. (CPSI), a health IT systems developer, has acquired one of its main rivals in the EHR market, Minneapolis-based Healthland Holding, in a deal valued at $250 million.
- The combined company will have 1,300 acute-care customers and more than 3,300 post-acute facilities.
- The Mobile, AL-based CPSI noted in a prepared statement the combined entity should generate $300 million in annual revenue and have more than 1,900 employees.
Dive Insight:
CPSI CEO and president Boyd Douglas said in a statement, "With this acquisition, CPSI now has a presence in well over 1,000 rural and community hospitals, which represents approximately 28% of the community hospital market."
The Healthland acquisition includes American HealthTech, which Boyd said would enhance its post-acute care customers. "CPSI will now be servicing the IT needs of approximately 24% of the long-term care market," he added.
In August 2015, Modern Healthcare's data analysis from the federal EHR incentive program showed CPSI led all vendors with 428, or 26.1%, of the 1,638 hospitals that had achieved Stage 2 meaningful use status in 2014. Healthland ranked fifth with 172 hospitals, or 10.5%, of the total.