NextGen Healthcare Acquires Entrada for $34 Million to Bolster Mobile EHR Platform Capabilities

VCBeat has learned that NextGen Healthcare’s wholly-owned subsidiary recently acquired Entrada for $34 million in cash. Headquartered in Brentwood, Tennessee, Entrada is a mobile connectivity platform based on electronic health records (EHR). The acquisition is expected to close upon completion of the payment. In 2016, Entrada reported total annual revenue of approximately $12 million and a net loss of around $2 million.

NextGen Healthcare Information Systems, formerly known as Clinitec International, was founded in 1994 and is headquartered in Horsham, Pennsylvania. NextGen Healthcare Information Systems operates as a subsidiary of Quality Systems, providing electronic medical record (EMR) management systems and healthcare documentation systems for physician clinical practices.

NextGen Healthcare’s healthcare information solutions include:

Dynamic Solutions:Improve patient care, care coordination, and interoperability. Address economic challenges and successfully participate in value-based care programs.

Revenue Cycle Management:Manage and anticipate changes in regulators and payers. Keep pace with evolving reimbursement models. Focus more on care. Get paid faster.

Shared Data:Consolidate personal secure medical records and share them with colleagues, patients, laboratories, hospitals, pharmacies, and payers.

Entrada, formerly known as VocalEZ, Inc., was founded in 2005 and renamed Entrada, Inc. in January 2010. Headquartered in Brentwood, Tennessee, the company integrates multiple clinical platforms and mobile application platforms for all major EHRs. Its core product is software developed for the automated exchange of clinical documentation and data in outpatient settings, ambulatory surgery centers, and hospitals.

Due to its functionality and integration with clinical systems, it is an essential component of daily clinical workflows. Entrada helps maximize existing technology investments while enhancing the productivity of physicians and staff.

Entrada's solutions include:

Document Support:Enable physicians and other care providers to quickly and easily create clinically relevant documentation within the EHR without sacrificing productivity.

Workflow Optimization:Provides caregivers with a fast, simple way to view and share real-time clinical content and complete critical EHR tasks from mobile devices.

Secure Communication:Enhance collaboration and optimize clinical workflows through secure text messaging and clinical data sharing integrated with EHRs.

According to VCBeat, on one hand, Entrada is currently underperforming and operating at a loss, with losses amounting to approximately $2 million in 2016. On the other hand, NextGen Healthcare has been developing electronic health record (EHR) management systems and medical record systems for nearly 25 years. The acquisition of Entrada could further accelerate the development of EHR management, enabling both parties to achieve greater growth.

Rusty Frantz, President and Chief Executive Officer of NextGen Healthcare, stated in a press release: “Mobile health solutions are rapidly becoming one of the most valuable sectors in healthcare. We intend to invest in expanding the capabilities of Entrada, further enhancing its already impressive platform. By providing better care and improving the patient experience, this acquisition will increase physician satisfaction while enabling clients to improve their financial performance.”

Bill Brown, CEO of Entrada, stated: “Entrada is committed to improving clinical workflows, establishing new standards for next-generation care delivery, and advancing patient management models. By leveraging the resources of NextGen Healthcare, we can unlock the productivity potential of healthcare professionals, enabling them to focus on patients and treatment itself.”