Allscripts is all in and soon Netsmart will be in homecare.
Allscripts Healthcare Solutions announced a joint venture with private equity firm GI Partners to merge with Netsmart Technologies, Inc.As part of the venture, Allscripts Homecare business will merge with Netsmart CareFabrics form the largest technology company solely focused on human services and post-acute care with more than $250 million in annual revenue and more than $60 million in annual operating income.
Homecare is a new market for Netsmart.
Netsmart CEO Mike Valentine tells Behavioral Healthcare the goal is to create a comprehensive platform that manages all the services and care delivery "outside the four walls of the hospital and physician pracices."
"We are at scale now so we can leverage our capability into adjacent markets that have similar needs as the human services market that we traditionally serve," Valentine says.
Netsmart is currently the largest healthcare IT company serving the health and human services sector, which includes behavioral health, public health and child and family services. Both Allscripts and Netsmart ranked on the Healthcare Informatics' 2015 HCI 100 list at No. 10 and 52, respectively.
"Creating a software and services platform for caregivers to manage patients through the combined realities of post-acute care and mental health is absolutely essential to achieving the value-based care goal of healthy communities and populations," says Allscripts CEO Paul Black in a news release.
Netsmart will remain a stand-alone company. Valentine will continue to serve as CEO and headquarters will remain in Overland Park, Kan. The transaction is expected to close in late April pending regulatory approval.