- Allscripts and private equity group GI Partners announced they will acquire stakes from Genstar Capital for a combined $950 million.
- Allscripts is investing $70 million in cash and will merge its home-care software business into the newly formed joint venture, with a combined revenue of $250 million, according to Allscripts.
- The new company will keep Valentine as CEO and merge Allscripts' 30,000 customers with Netsmart's 23,000 clients.
The two companies collaborated in 2014 to integrate Netsmart's behavioral EHRs with Allscripts' EHRs. The new joint venture, according to Modern Healthcare, will serve to bring Netsmart into the home care market and complement the company's behavioral health business.
There is a push for collaborative care which brings together primary care and behavioral health since many individuals with mental health issues suffer from chronic conditions. In order for this to be successful and improve care quality and reduce costs, behavioral health data needs to be accessible to primary care physicians. There are some pending regulatory changes that could expedite that data flow, as previously reported by Healthcare Dive.
The deal still needs to pass regulatory review but is expected to close next month.