In a deal that will impact rural and community hospitals, Mobile, Ala.-based Computer Programs and Systems, Inc. (CPSI) announced last week that it would acquire Healthland Holding Inc. and its affiliates for $250 million.
CPSI is a provider of healthcare information solutions tailored to rural and community hospitals, while Healthland provides electronic health records (EHRs) and clinical information management solutions to more than 350 hospital customers. The company’s affiliate, American HealthTech, develops clinical and financial solutions in the post-acute care space, serving more than 3,300 skilled nursing facilities. Another affiliate, Rycan Technologies, offers SaaS-based revenue cycle management workflow and automation software to more than 290 hospital customers.
In a press release, CPSI said the deal strengthens its position in providing healthcare information systems to community healthcare organizations with approximately 1,200 combined hospital customers and introduces the company to the post-acute care market. CPSI also said the combined company is projected to have annual revenues of approximately $300 million in 2015 and more than 1,900 employees.
Boyd Douglas, president and chief executive officer of CPSI, said, “As the healthcare industry transitions to value-based reimbursement, our combined solutions will connect communities, patients and providers to facilitate more effective population health management, better patient engagement, and the advancement of quality and care coordination. In addition to an expanded client and solution base, the acquisition will also create synergies in our healthcare services offerings to address the acute and post-acute care markets’ demand for improved financial and operational performance. There is no doubt that the addition of Healthland, along with American HealthTech and Rycan, will not only improve CPSI’s offerings in the healthcare IT market, but will provide our combined company with greater opportunities for growth and significantly deepen our knowledge, resources and experience base. We are confident this combination will allow us to continue to be a leading innovator with greater benefits for our customers and the communities they serve, both now and in the years to come.”