NextGen Healthcare to Acquire Medfusion for $43 Million to Enhance Outpatient Engagement Through Advanced Health IT

VCBeat (WeChat ID: vcbeat) learned via Business Wire that on November 13, 2019, healthcare company NextGen Healthcare (NASDAQ: NXGN) announced it had reached an agreement to acquire Medfusion. The total consideration for the acquisition is $43 million, subject to customary adjustments, and NextGen will pay the purchase price in cash upon closing of the transaction.

The current round of acquisition is expected to be completed in early December 2019. The acquisition agreement indicates that NextGen Healthcare will acquire all outstanding shares of Medfusion, but prior to the closing of the transaction, Medfusion must spin off its early-stage data services business under the name Greenlight Health.

NextGen, founded in 1974 and headquartered in Irvine, California, is a leading healthcare services company. The company specializes in providing comprehensively integrated software, service platforms, and analytics solutions to the ambulatory care market and dental industry, supporting outpatient and specialty practices of all sizes, with a commitment to improving the lives of both providers and patients.

NextGen delivers tailored services to clients through clinical care solutions—including EHR, population health and mobile solutions, as well as consulting services—designed to meet the precise needs of ambulatory care and help hospitals optimize their quality of care.

As patients shoulder increasing financial burdens in healthcare, they are taking a more proactive approach to seeking medical options that balance cost and quality. High-quality healthcare depends on access to healthcare information, which is precisely why NextGen acquired Medfusion.

Medfusion, founded in 1996 and headquartered in Cary, North Carolina, USA, is a healthcare information company. The company redefines health information technology around patients’ information needs, eliminating the requirement for patients to proactively provide their health data. Medfusion’s robust portfolio of healthcare APIs enables the retrieval, aggregation, and sharing of health data from more than 40 leading electronic health record (EHR) systems.

Medfusion’s patient experience platform facilitates interaction between patients and providers on key issues. The company offers a modern portal with an attractive, user-friendly interface that is accessible on any device. Featuring robust capabilities for patient intake, scheduling, and payments, the platform is currently used by over 16 million patients.

“NextGen President and CEO Rusty Frantz stated, ‘We must further engage patients in their healthcare, as engagement is critical to achieving positive outcomes and reducing medical costs. Providing comprehensive experiences, tools, and meaningful information is not only necessary but increasingly expected by patients. The acquisition of Medfusion has helped enhance patient engagement on NextGen’s ambulatory platform.’”

Medfusion CEO Kim Labow stated, “Since its inception, Medfusion has been dedicated to facilitating communication between patients and healthcare institutions, leveraging information technology to serve both patients and medical practices. By partnering with NextGen, we will expand our market reach and help NextGen fulfill its mission of transforming ambulatory care.”

(Compiled by Jiang Ying)