Allscripts announced plans to acquire prescription drug start-up ZappRx in a move to expand its offerings beyond EHR solutions.
In its latest acquisition, Allscripts will buy prescription drug start-up ZappRx in an effort to diversify its health IT offerings beyond EHR technology, according to CNBC.
ZappRx launched in 2012, raising more than $40 million from investors. Firms including GV and SR One invested in the start-up.
Allscripts did not disclose the financial terms of the deal, but the health IT company bought ZappRx for less than $40 million, according to two sources close to the matter.
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ZappRx specializes in assisting patients in accessing specialty medications, including expensive, high-complex, and high-cost interventions. Zoe Barry, CEO of ZappRx, founded the company after her brother was diagnosed with severe epilepsy.
“Allscripts is excited to add ZappRx’s platform to our growing portfolio,” Allscripts told CNBC in a statement. “The specialty-prescribing space is a key focus area for Veradigm, our payer and life sciences business unit. While we cannot share the details of our agreement publicly, the addition of ZappRx’s team and technology will augment our solution offerings and provide great value to our clients.”
Veradigm is an integrated data system and services company that delivers information to providers intended to boost clinical efficiency and care quality. The business unit’s focus is on delivering data insights to providers at the point-of-care to improve reporting and provider workflow interventions.
ZappRx provides a cloud-based health IT system that helps providers reduce the time it takes for patients to access specialty medicine after receiving a prescription.
“Our digital platform streamlines the process to collect and save all of the information required to fill a specialty prescription in one step; including pharmacy information, payer/prior authorization requirements, and relevant patient clinical history,” ZappRx states on its website.
The solution also enables healthcare providers, pharmacists, and payers to communicate digitally to fill prescriptions, reducing the need for faxes and phone calls.
By streamlining the prescribing process, ZappRx ensures providers caring for patients with complex conditions can focus more on patient care delivery rather than administrative processes.
Existing ZappRx customers include pharmaceutical company Bayer and research group CureDuchenne.
Allscripts’ acquisition of ZappRx follows its purchase of Practice Fusion in 2018.
The health IT company bought Practice Fusion’s web-based EHR solution in a $100 million cash deal as part of an effort to expand its reach into ambulatory care settings.
Practice Fusion’s EHR solution complements Allscripts’ existing ambulatory clinical portfolio as a value offering to accommodate under-served clinicians in small and individual physician practices.
Practice Fusion offered a cost-free, cloud-based EHR platform including customizable templates designed to reduce data re-entry through shortcuts and automated favorite lists. The health IT company generated revenue by showing relevant pharmaceutical ads to users.
After acquiring Practice Fusion, Allscripts scrapped the vendor’s business model and began charging a monthly subscription fee of $100 per physician per month.
In a report from Reaction Data in 2018, Practice Fusion received one of the highest overall satisfaction ratings from users at 75 percent approval. Meanwhile, Allscripts received one of the worst overall satisfaction ratings at 28 percent.
In 2017, Allscripts acquired McKesson’s hospital and health system IT business in a deal valued at $185 million.
“This strategic acquisition further advances Allscripts strategy to offer the most comprehensive, high performing health information technology and solutions. Upon close, McKesson will have furthered its focus as a global leader in healthcare supply chain management solutions,” the companies announced in a joint statement at the time.
Allscripts gained McKesson’s inpatient EHR system, Paragon, as well as two revenue cycle management solutions, a laboratory information system, and a content management system through the acquisition.
Date: June 17, 2019
Source: EHR Intelligence