Allscripts and Eclipsys announce $1.3B merger
Allscripts and Eclipsys announced a $1.3 billion merger, which some analysts tout as a match "made in heaven" due to Allscripts's strength in the ambulatory space and Eclipsys's strength on the acute side. The merger is expected to be completed in four to six months; the combined company will have around 5,500 employees. The merger will also pose some challenges for the combined entity, with some customers worrying that the merger will distract management from dealing with existing issues. However, analysts believe that Allscripts's smooth merger with Misys in 2008 is a good sign that this merger with Eclipsys will succeed.
Both companies are looking to capitalize on the projected exponential growth in adoption of health IT, in part due to the incentives created by ARRA. According to the Congressional Budget Office, adoption of electronic health records by physician practices is expected to increase from 12% in 2011 to 90% by 2019.
This merger is yet another sign of future consolidation in the healthcare industry, both on the vendor side, and on the provider side, as enterprises try to minimize costs and maximize revenue in the ever-changing and often uncertain business environment.
"Allscripts-Eclipsys: 'A match made in heaven' - mostly," Healthcare IT News (June 10, 2010).
