Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HIMSS 2023
  • Opinion
    • Breaking Bias
    • Commentaries
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • 40 Under 40
    • Best Places to Work in Healthcare
    • Healthcare Marketing Impact Awards
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women Leaders
    • Digital Health Transformation Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Looking Ahead to 2024
    • - AI and Digital Health
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
March 23, 2016 12:00 AM

Allscripts is buying stake in Netsmart Technologies

Melanie Evans
  • Tweet
  • Share
  • Share
  • Email
  • More
    Valentine

    Electronic health record developer Allscripts Healthcare Solutions is acquiring a stake in Netsmart Technologies, a private-equity backed behavioral health information technology provider. The deal is expected to boost Netsmart's IT capabilities as changes to privacy laws that could open up the flow of records from behavioral healthcare providers are being considered.

    Chicago-based Allscripts and private equity firm GI Partners, in San Francisco, will each acquire stakes from Genstar Capital, another San Francisco-based private equity firm, for a combined $950 million, said Michael Valentine, CEO of Netsmart.

    Allscripts will invest $70 million in cash and merge its home-care software business into the new joint venture, which will create a company with annual income of $60 million on revenue of $250 million, according to Allscripts. Valentine will remain CEO of the new company, which will merge Allscripts' 30,000 customers with 23,000 Netsmart's clients.

    The two companies previously announced a collaboration in 2014 to integrate Netsmart's behavioral health electronic records with Allscripts' EHRs.

    Netsmart's executives say the deal capitalizes on new incentives for hospitals and clinics to reduce costs and better coordinate medical care. The new joint venture will diversify Netsmart's business into home care and also compliment the company's existing business in behavioral health and social service information technology.

    “If you think about the lowest-cost venue to deliver care, it is the home,” said Kevin Scalia, executive vice president of corporate development for Overland Park, Kan.-based Netsmart. Many patients have both behavioral health and chronic conditions for which care could be better coordinated with information technology, he said.

    There are also some possible regulatory changes that could make it easier for data to flow from behavioral health providers and that would increase the already strong demand for patient data—and EHRs that handle that data. So, any companies working on improving interoperability between those two information silos would have a leg up on the competition.

    Allscripts would be the largest owner under the deal, but will not hold a majority stake, said Valentine. Management retained some ownership in the company.

    Allscripts said the deal is expected to be accretive and add $150 million to the company's 2016 revenue. It must first, however, clear regulatory review. It is expected to close in April.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    merger money puzzle
    Fairview not renewing University of Minnesota contract
    urgent care sign
    CommonSpirit plans ambulatory expansion despite financial losses
    Most Popular
    1
    Executives detail UnitedHealthcare, Optum Health's growth plans
    2
    Meet the 2023 Most Influential People in Healthcare
    3
    Staff shortages hit Medicare Advantage stars, Kaiser exec says
    4
    Honorees Announced - 100 Most Influential People in Healthcare
    5
    Bright Health ordered into liquidation by Texas court
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • 40 Under 40
        • Best Places to Work in Healthcare
        • Healthcare Marketing Impact Awards
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women Leaders
      • Conferences
        • Digital Health Transformation Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Looking Ahead to 2024
        • - AI and Digital Health
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing