Skip to content Skip to navigation

Quality Systems Acquires HealthFusion for $165M

November 3, 2015
by Heather Landi
| Reprints
Click To View Gallery

In a move to build its ambulatory-focused strategy, Irvine, Calif.-based Quality Systems Inc. has acquired San Diego-based HealthFusion Holdings, a developer of cloud computing software for physician practices, for $165 million.

Quality Systems, the parent company of practice management and electronic health record (EHR) company NextGen Healthcare, announced the deal Oct. 30 and the deal includes a potential additional contingency of up to $25 million.

The acquisition comes on the heels of Quality Systems selling the Hospitals Solutions Division of its NextGen EHR business to QuadraMed Affinity Corporation last week. Quality Systems' president and CEO Rusty Frantz said that the divestiture of the company's hospital division enables Quality Systems and NextGen Healthcare to focus on its core, ambulatory business.

"This transaction underscores our commitment to further cementing our market position and emphasizing our core strengths within the ambulatory segment of healthcare delivery,” Frantz said in a release about the divestiture on Oct. 22.

HealthFusion develops web-based, cloud computing software for physicians and hospitals, including the 100 percent cloud-based MediTouch platform currently used by more than 3,000 physician practices, hospital ambulatory centers and medical billing services.

In a statement, Quality Systems said the acquisition of HealthFusion and its MediTouch platform would accelerate the cloud-based development of NextGen Healthcare core applications. Frantz said the acquisition of HealthFusion is another example of the company’s strategy to expand both client base and solution capabilities in the ambulatory marker.

MediTouch EHR was designed for use on mobile tablets such as the iPad and the various modules, including the EHR, medical billing, practice management, collections, patient portal, and clearinghouse.

“We believe our SaaS-based healthcare technology products will prove beneficial to Quality Systems’ NextGen Healthcare service offering as the company advances its cloud solutions capabilities,” Sol Lizerbram, M.D. and HealthFusion chairman, said in a statement. “This acquisition presents significant opportunity to capitalize on the joint successes both companies have achieved to date in the ambulatory market segment,”

Frantz added, “HealthFusion brings an extremely intuitive, fully mobile, cloud-based solution that affords smaller groups of physicians and other providers a clean EHR experience within a fully integrated suite of solutions for their practice. Over time, we will focus on expanding the platform to satisfy the needs of practices of increasing size and complexity. We will also look to provide some of our broader service capabilities to the HealthFusion client base.”



CMS Hospital Compare Website Updated with VA Data

The Centers for Medicare & Medicaid Services (CMS) has announced the inclusion of Veterans Administration (VA) hospital performance data as part of the federal agency’s Hospital Compare website.

CMS Awards Funding to Special Innovation Projects

The Centers for Medicare & Medicaid Services (CMS) has awarded 20, two-year Special Innovation Projects (SIPs) aimed at local efforts to deliver better care at lower cost.

Center of Excellence in Genomic Science to be Established in Chicago

The National Human Genome Research Institute has awarded $10.6 million over five years for the establishment of a new research center in Chicago to advance genomic science.

EHNAC and HITRUST Combine HIPAA Security Criteria, CSF Framework

The Electronic Healthcare Network Accreditation Commission (EHNAC) and the Health Information Trust Alliance (HITRUST) announced plans to streamline their accreditation and certification programs.

Halamka on MACRA Final Rule: “CMS is Listening and I Thank Them”

Health IT notable expert John Halamka, M.D., CIO of Beth Israel Deaconess Medical Center in Boston, recently weighed in on the Medicare Access and CHIP Reauthorization Act (MACRA) final rule.

Texas Patient Care Clinic Hit with Ransomware Attack

Grand Prairie, Texas-based Rainbow Children's Clinic was the victim of a ransomware attack on its IT systems in August, affecting more than 33,000 patients, according to multiple news media reports this week.