NextGen Healthcare, a provider of ambulatory-focused technology solutions, has agreed to acquire Medfusion Inc., a patient experience platform company, for $43 million in cash.
Cary, N.C.-based Medfusion has more than 14 million patients in 50 states on its platform. Publicly traded NextGen (NASDAQ:NXGN) cited three ambulatory care market trends as reasons for the acquisition of Medfusion:
• As patients assume increased financial responsibility for their healthcare, they are more actively involved in making choices based on both cost and quality.
• High-quality healthcare depends on improved access to care and information.
• Patient experience drives patient engagement, which is key to improving health outcomes.
Medfusion’s patient experience platform includes capabilities for patient intake, patient scheduling and patient payment capabilities and is used by more than 16 million patients.
“We must further engage patients in their healthcare journey as engagement is essential for great outcomes and lowering the cost of care,” said Rusty Frantz, president and CEO of Irvine, Calif.-based NextGen Healthcare, in a statement. “Providing the overall experience, tools and meaningful information isn’t just essential, it is increasingly expected by today’s healthcare consumer. The acquisition of Medfusion will add a best-in-class patient access and engagement capability to NextGen Healthcare’s award-winning, fully-integrated ambulatory platform.”
The acquisition agreement provides for the acquisition of all of the outstanding equity in Medfusion, but will be subject to Medfusion transferring, prior to the closing, its data services business, which is in its infancy and will be transferred out of Medfusion as Greenlight Health. Greenlight Health will be focused on driving data flows for patients, consumers, businesses and organizations that need ready access to patient-approved data housed across a wide variety of healthcare providers and patient portals. Greenlight will be based in Cary, N.C., and will be staffed by employees from within Medfusion who already support the data services business.
