CHICAGO, Jan. 2 Allscripts, the leading providerof clinical software, connectivity and information solutions that physiciansuse to improve healthcare, announced today it has acquired all of theoutstanding stock of Extended Care Information Network (ECIN), a leadingprovider of hospital care management and discharge planning software, forapproximately $90 million in cash. The acquisition combines the two industryleaders in care management and enables Allscripts to connect another keycomponent of the healthcare delivery system -- the exchange of patientinformation between hospital case managers, physicians outside the hospital,and the growing number of post-acute care facilities nationwide.
ECIN's web-based "software as a service" solutions automate and streamlinethe entire care management process in hospitals, from admission throughdischarge, resulting in increased productivity, improved patient throughputand better outcomes. The privately-held company has a client base of more than400 hospitals and nearly 5,000 post-acute care facilities -- nursing homes,assisted living and other facilities to whom hospitals refer patients in needof long-term care or short-term residential-based rehabilitation. Along withAllscripts existing Canopy(R) care management solution, the acquisition givesthe company one of the largest installed bases of care management clients inthe nation, with nearly 700 combined hospitals, as well as one of the largestnetworks of post-acute care facilities. Both care management solutions aredeployed using an application service provider (ASP) model designed for rapidimplementation with minimal use of hospital IT support staff.
"Our acquisition of ECIN represents the convergence of two market leadersand will help connect hundreds of hospitals and thousands of post-acute carefacilities to our network of ambulatory physicians, bringing us one stepcloser to our vision of a truly interconnected healthcare system," said GlenTullman, Chief Executive Officer of Allscripts. "This combination providessignificant leverage for each of our product offerings and broadens Allscriptsrelationships in the hospital market at a time when hospitals are becomingmore important influencers in the Electronic Health Record sales process."
Allscripts also announced the creation of a new Hospital Solutions Groupwithin the company to be directed by Jeff Surges, Chief Executive Officer ofECIN. The new Allscripts business unit will provide a suite of products andservices under one umbrella, combining ECIN with the company's emergencydepartment information systems (EDIS) and its existing care managementsolution, Canopy(R). Allscripts will continue to support both of its caremanagement products for the foreseeable future.
With the addition of ECIN, Allscripts is positioned to benefit from recenttrends that are driving the automation of healthcare information and themanner in which it is exchanged between hospitals, physicians outside thehospital, and post-acute care facilities. Recent changes to the federal Starkregulations, for example, now allow hospitals to assist affiliated physiciansin adopting Electronic Health Record and Electronic Prescribing to enhancepatient safety and quality of care. Allscripts has been a major beneficiary ofthat change, with hospital systems across the country selecting the company'ssolutions for their employed physicians as well as affiliated andnon-affiliated physicians in their local communities.
At the same time, the federal government and other stakeholders recentlyproposed requiring the automation of Medicare patient information exchangedbetween hospitals and the providers to whom they refer discharged patients.However, according to a recent survey by the American Care ManagementAssociation, less than 20 percent of hospitals have automat