McKesson, the large San Francisco-based healthcare technology vendor, announced this week it is getting out of the care management software business.
The company sold its McKesson Care Management business to Comvest Partners, a West Palm Beach, Fla.-based private investment firm, for an undisclosed amount. Comvest is planning on renaming the business, AxisPoint Health. The company, which has a care management software platform, will have its headquarters in Westminster, Colo., where it was previously located under McKesson.
For McKesson, selling off its care management is a chance to focus on its "core strengths," according to prepared comments from Jeff Felton, president, McKesson Connected Care & Analytics. The company recently announced its quarterly earnings, where most of its divisions did well. The one exception was health IT, where revenues fell 10 percent for the quarter and 8 percent year-over-year. Approximately 900 employees at McKesson were affected and are now employed by AxisPoint Health, of which approximately 700 are nurses and other clinical professionals.
Comvest said it plans to invest in AxisPoint Health. Mosaic Health Solutions, a healthcare technology investor based in Durham, N.C., is on the deal with Comvest.
“In the new era of value-based health care, the entire industry is reorienting around achieving the best outcomes by identifying the most appropriate levels of care,” Roger Marrero, Partner at Comvest Partners, said in a statement. “We believe that AxisPoint Health starts out with deep experience and capabilities in the market for connecting members to the right care in the most cost-effective way.”