Computer Programs and Systems Inc., a developer of electronic health records and other health information technology systems, has completed its acquisition of Minneapolis-based Healthland Holding. The company is one of CPSI's main rivals in the small rural and community hospital EHR market where CPSI has influence.
The deal was valued at approximately $250 million and will create a combined company with 1,300 acute-care customers and more than 3,300 post-acute facilities. Once combined, Mobile, Ala.,-based CPSI should generate $300 million in annual revenue and have more than 1,900 employees, a CPSI statement said.
CPSI CEO Boyd Douglas said the acquisition will lift its share of the community hospital market to 28%. “Further, with the addition of American HealthTech post-acute care customers, CPSI will now be servicing the IT needs of approximately 24% of the long-term care market.”
Healthland bought American HealthTech in 2013.
In an August 2015 Modern Healthcare analysis of data from the federal EHR incentive payment program, CPSI led all vendors with the number of hospitals that had achieved Stage 2 meaningful-use status in 2014, with 428, or 26.1% of the 1,638-hospital total. Healthland ranked fifth with 172 hospital clients meeting Stage 2 in 2014, or 10.5% of the total.