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Electronic health records

Misys sells its hospital EHR divisions

Misys Healthcare will concentrate on selling software for physicians’ offices after divesting its Hospital Systems business in July 2007 in two deals totaling US$414.5 million.

The Raleigh-based subsidiary of British company Misys plc is selling its Arizona-based Diagnostic Systems business for $381.5 million to Vista Equity Partners, a private equity firm focused on investing in technology companies.

Misys Healthcare, which employs 800 in Raleigh, also announced the sale of its California-based Computerized Patient Record assets to Reston, Va.-based QuadraMed Corp. for $33 million in cash.

Misys was rumored for months to be shopping the hospital business. The sales announced last month will allow the healthcare division to again focus on selling computerized medical records systems to doctors’ practices. The divested divisions provided similar products and services to hospitals. “We won’t be selling any hospital-specific software after these deals are completed,” said Misys spokesman Mike Holsinger.

About 700 employees in diagnostics and approximately 50 workers in the Computerized Patient Record business are expected to be affected by the two transactions. Employees affected are based in Tucson, Ariz., and San Bernadino, Calif., and the deals are not expected to impact the Raleigh headquarters, Holsinger says.

Misys created its Hospital Systems division with a 2001 purchase of Tucson, Ariz.-based Sunquest Information Systems for $404 million. Sunquest was folded into the Raleigh-based healthcare division, which ran into problems that led to the resignation of longtime CEO Tom Skelton in January.

 

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