Mergers & Acquisitions

e-MDs, an Austin, Texas-based developer of ambulatory electronic health records and practice management tools, will acquire several technology assets from McKesson Business Performance Services. Terms of the deal were not disclosed. The technologies include McKesson Practice Choice, Medisoft, Medisoft Clinical, Lytec, Lytec MD and Practice Partner. e-MDs officials say the tools will be used by some 55,000 of its provider customers nationwide. The company hopes the acquisition will benefit small- to medium-sized practices and broaden e-MDs' presence in the ambulatory IT market. [Like Healthcare IT News on Facebook] "The McKesson team supporting these products is passionate about the same thing we are- helping doctors maintain focus on the patient,” said e-MDs CEO Derek Pickell in a statement. "All of us at e-MDs look forward to aligning this team with ours to bring e-MDs’ full suite of solutions to thousands of new providers across the country." "e-MDs is the perfect fit for these assets because it has award-winning technology ideally suited to this customer base,” said Scott Sanner, general manager of McKesson Business Performance Services, in a statement. Twitter: @JessiefDavis

Experian Health is the new brand for what were 11 businesses that serve the healthcare field, the company announced at HIMSS16.

UPMC says it will take a majority interest in New York-based medCPU, become a customer of the company and also will co-develop new products to take to market. UPMC Enterprises, the commercialization arm of UPMC, has offered to purchase stock from existing non-employee medCPU shareholders, and executives expects UPMC will hold majority ownership in the privately held company when the offer is completed. [Also: Children’s Hospital of Pittsburgh of UPMC wins Davies Award] Also, planned for the second quarter of this year, UPMC will lead an investment round of $35 million in new capital to accelerate expansion of medCPU. Existing medCPU shareholder Merck Global Health Innovation Fund is also participating in this round. “Our partnership with medCPU will provide UPMC with technology and solutions that will be immediately valuable to our clinicians and patients,” said Tal Heppenstall, president of UPMC Enterprises. Longer term, he added, the technology would enable the development of other data-dependent applications in areas such as care management, population health and consumer engagement. The customer and co-developer model is one that UPMC has also employed with data analytics company Health Catalyst. MedCPU counts more than 60 hospital facilities among its clients. It will open a Pittsburgh office, hire more than 20 engineers and other staff to work with UPMC to co-develop additional products and to improve existing solutions. MedCPU’s technology addresses the healthcare IT challenges of interoperability, capturing all relevant patient data, and understanding free text, dictation and structured data from EHRs and ancillary systems, MedCPU CEO and co-founder and former helicopter pilot Eyal Ephrat, MD, said. Twitter: @HealthITNews

McKesson is expanding its footprint in the oncology field with a combined $1.2 billion acquisition of two companies – Vantage Oncology and Biologics.

Medsphere Systems, maker of the OpenVista electronic health record, and MBS/Net have merged, adding physician practice services and proprietary applications to Medsphere’s existing healthcare IT tools and services for acute and inpatient behavioral health settings.  Financial terms of the deal were not disclosed, but officials said MBS/Net will retain its name and operate as a division of Medsphere.  Medsphere’s OpenVista EHR is derived from the VistA system developed by the U.S. Department of Veterans Affairs and the Indian Health Service. [Also: Health Partners New England taps Medsphere for behavioral health] The addition of Cleveland-based MBS/Net expands Medsphere’s products and services to include an ambulatory physician suite of products that includes a physician practice management system, ambulatory EHR, document management system and a scheduling app. It also includes the company’s outsourced revenue cycle management and practice hardware management services, officials say. The Medsphere-MBS/Net merger follows the March 2015 merger of Medsphere and Phoenix Health Systems, which provides a range of healthcare IT services, including systems implementation, compliance project management and more. MBS/Net’s products and services coupled with Medsphere’s OpenVista platform will further interoperability between Medsphere’s hospital clients and their affiliated physician communities, Medsphere President and CEO Irv Lichtenwald said in a statement. "We’ve seen the benefits the practice management and revenue cycle solutions have created for MBS/Net clients, in some instances boosting individual practice revenue by more than 100 percent," he said. "The focus of MBS/Net solutions on physician practices and the recent addition of Phoenix Health Systems’ consulting and services enables Medsphere to meet the needs of providers across the spectrum of healthcare." Twitter: @HealthITNews

IBM executives say the purchase adds not only a massive repository of health data to the Watson Health Cloud, but also an extensive client roster to IBM's Watson Health unit.

Execs hope deal will turn system developed for UPMC into one that could be adapted for other health systems and hospitals.

The move comes almost a year after Mayo first announced it would replace its existing electronic health record system with one from Epic.

Navigant Consulting has acquired revenue cycle-focused McKinnis Consulting Services for $49 million in cash and $3 million in common stock, the companies announced on Monday. The deal means more than 70 of McKinnis’ consultants will join Navigant, and all three McKinnis founders, James McHugh, Timothy Kinney, and John Morris, will join Navigant’s revenue cycle leadership team.  Chicago-based McKinnis Consulting Services offers revenue cycle assessment services to clients including academic medical centers, health systems and physicians groups. Navigant is a global firm with clients in the healthcare, energy and financial services industries offering professional services in areas including financial planning, risk management and business process management. “The McKinnis transaction is purpose-driven to expand our RCM capabilities at a time when health system margins are under greater scrutiny,” said David Zito, managing director and Navigant healthcare segment leader.  “The McKinnis professionals, which include the firm’s founders, further complement our ability to help clients navigate through the disruptions in the healthcare sector.” McKinnis has worked with major health systems including Indiana’s Parkview Health, which it helped manage through its Epic electronic health records integration, and John Muir Health in California, which it helped overhaul its revenue cycle systems. In fact, Mckinnis said it helped John Muir see a 98 percent increase in self-pay yield, 9 percent increase in third-party liability yield and a 20 percent increase in point-of-service cash collections. Twitter: @BethJSanborn

NantHealth on Tuesday announced plans to acquire Boston-based NaviNet, wrapping up what it called a 10-year plan for the tech firm, CEO Patrick Soon-Shiong, MD, said. Under terms of the deal, NantWorks, a holding company, and its majority-owned subsidiary NantHealth, are buying NaviNet for an undisclosed sum. The deal gives NantHealth entry into the payer market and strengthens its personalized medicine goals. NaviNet is known for its payer-provider collaboration technology. NantVentures, the private equity arm of NantWorks participated in the financing. “The acquisition of NaviNet completes our 10-year vision at NantWorks and NantHealth to integrate and coordinate our complex healthcare ecosystem from the knowledge domain, to the care delivery domain and now to the payer domain, as a single sign-on, seamless, cloud-based, secure adaptive learning system for patients, payers, and providers,” Soon-Shiong, founder and CEO of NantHealth, said in statement. The billionaire entrepreneur is quoted in the Los Angeles Business Journal as saying a public offering for NantHealth, which had been planned for last year, had been delayed pending the acquisition and integration of NaviNet. The acquisition continues NantHealth’s vision of delivering on whole health systems integration and revolutionizing the patient-clinician experience by bringing real-time molecular and evidence-based insights to the point of care, he said. NaviNet has a customer base of more than 40 health plans and nationwide network of more than 450,000 users. Its All-Payer Access provider portal connects more than 450 commercial and government plans via NaviNet Open, its payer-provider collaboration platform. “This cloud-based system allows provider access to over 90 percent of covered lives in the United States and will serve as a transformative platform for the communication of cutting-edge knowledge to all,” said Soon-Shiong. “By combining NaviNet Open’s applications – eligibility and benefits from more than 450 commercial and government plans, referrals, authorizations, document exchange, claims management, and more – with NantHealth’s interoperability, decision support and connectivity platforms and with NantOmics supercomputer predictive modeling platforms, we are now poised to be the nation's leading healthcare collaboration network by transforming the payer-provider relationship to evolve from transactions to interactions and finally to collaboration,” he added NantHealth will be able to leverage NaviNet’s nationwide network across more than 170,000 active provider offices and 2,000 hospital settings to reach more doctors with genomics, decision support and connectivity solutions to enable better care coordination at lower costs for patients. “Our dream was to address the cognitive overload that faces clinicians today especially in the complexity of cancer, and support community oncologists as well as major academic centers,” he said. “Finally, we have the infrastructure in place to make this a reality.” Twitter: @HealthITNews