Electronic health records vendor CPSI buys rural competitor Healthland for $250 million
CPSI said the combined company will have annual revenues of about $300 million in 2015.
Computer Programs and Systems, which provides healthcare information solutions to rural and community hospitals, will buy technology vendor firm Healthland Holding and its affiliates for $250 million, the company announced.
Healthland provides electronic health records and clinical information management to more than 350 hospitals. It's affiliate American HealthTech, meanwhile, provides clinical and financial solutions for more than 3,300 post-acute care providers and nursing facilities, while affiliate Rycan offers revenue cycle management workflow and automation software to 250 hospitals.
To make the acquisition, CPSI is using a mix of available cash, funded debt from a senior secured credit facility and shares of its common stock.
CPSI said the combined company will have annual revenues of about $300 million in 2015 and will employ more than 1,900 staffers. CPSI's adjusted earnings per diluted share is expected to increase by 35 percent in 2016 and 50 percent the year after.
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CPSI chief executive Boyd Douglas said the combined company will serve about 1,200 acute care facilities and 3,300 post-acute care facilities. He added that the company will better be able to drive patient engagement and care coordination, particularly as health systems transition to more of a value-based payment model.
CPSI is the parent of two companies, Evident and TruBridge. Evident provides electronic health record software to community hospitals -- similar to one of Healthland's core functions.
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