Allscripts Healthcare Solutions announced this week it is acquiring Netsmart Technologies, which provides post-acute care and human services technology solutions, in a joint venture with middle market private equity firm GI Partners.
As part of the venture, the two companies will merge Allscripts Homecare business unit into the Netsmart CareFabric suite of solution and, once the deal is complete, the combined business will operate as Netsmart. According to both companies, the deal creates the largest technology company exclusively dedicated to human services and post-acute care and Netsmart will not serve more than 24,000 home health, private duty, hospice and human services organizations, including more than 500,000 care providers.
Netsmart provides software and technology solutions designed especially for the health and human services sector, enabling clinical and business processes including electronic health records, patient management, billing, scheduling and clinical care delivery. Allscripts’ homecare business is a fully integrated system for both large and small home care organizations, automating point of care processes as well as patient intake and billing.
GI Partners will provide investments and resources that will allow Netsmart to more rapidly accelerate ongoing expansion into the evolving integrated healthcare technology sector.
Paul Black, Allscripts Chief Executive Officer of Allscripts, said in a statement, “Creating a software and services platform for caregivers to manage patients through the combined realities of post-acute care and mental health is absolutely essential to achieving the value-based care goal of healthy communities and populations. This joint venture finally brings scale with a depth and breadth of solutions required to navigate the immense opportunities in this growing global marketplace.”
Mike Valentine, Netsmart’s Chief Executive Officer, who will continue to hold that position with the new combined business, said in a statement, “Over the last five years, Netsmart has invested heavily in new product development, enhanced our technology and cloud capabilities, grown our support and client organizations and started several new add-on businesses to complement existing offerings. As a result of these and other initiatives, Netsmart revenues, client counts and the number of associates working for the company have all nearly tripled.”
Dave Kreter, a director of GI Partners, said, "We are excited to partner with Netsmart management to continue to build upon the market leadership they have achieved in the behavioral healthcare technology space and strategically expand the business across the post-acute landscape. The GI team believes this combination will create an industry leader that can improve clinical results and reduce costs in many increasingly important areas of the healthcare ecosystem."