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EHR Vendor athenahealth Acquired by Hellman & Friedman, Bain Capital

Two private equity firms have acquired cloud-based EHR vendor athenahealth in a $17 billion transaction.

athenahealth, an EHR vendor boasting cloud-based tech solutions, has been acquired by two private equity firms, Hellman & Friedman LLC and Bain Capital, for $17 billion.

“We are thrilled to partner with Hellman & Friedman and Bain Capital as we take the next step in our evolution and continue our work to transform and improve the delivery of healthcare,” Bob Segert, chairman and chief executive officer of athenahealth, stated publicly.

“It is an exciting time for athenahealth’s customers, employees, and partners,” Segert added. “This acquisition confirms our position as the largest and most innovative provider of cloud-based electronic medical record and physician practice solutions across healthcare, and I look forward to our future as we work together to realize our vision of creating a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all.”

The EHR vendor has been acquired twice in the last few years. In 2019, Evergreen Coast Capital and investment firm Veritas took athenahealth private in a $5.7 billion deal.  The deal required athenahealth to merge with Virence Health, a health provider Veritas acquired from General Electric Co.

Hellman & Friedman LLC and Bain Capital announced this most recent acquisition marks the end of Veritas Capital and Evergreen Coast Capital ownership of athenahealth. However, Veritas Capital and Evergreen Coast Capital will remain affiliated with athenahealth as co-investors.

To support the delivery of clinical and financial outcomes, athenahealth has partnered with over 1400,00 ambulatory care providers throughout the nation and across 120 specialties.

Through its products, athenahealth said it aims to enhance clinical efficiency, improve financial performance, better patient care outcomes, and encourage providers to accelerate their shift toward value-based care.

There is currently a demand for cloud-based EHRs, as they have become more favorable among health systems.

The adoption of cloud-based EHRs can reduce health IT costs, especially for small and rural hospitals, as they will no longer need to make a large investment in in-house EHR systems. What’s more, athenahealth’s population health tool saved accountable care organizations $143 million in 2020.

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