CPSI Announces Divestment of American HealthTech to PointClickCare
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The divestiture of American HealthTech, Inc. (AHT) by CPSI to PointClickCare represents a strategic move that may have significant financial implications for both companies involved. PointClickCare's acquisition could bolster its market position in the healthcare technology sector, particularly in the niche of post-acute care EHR solutions. This acquisition aligns with industry trends where companies streamline operations to focus on core competencies.
For CPSI, the sale is part of a broader business transformation aimed at refining its strategic focus. The divestiture could result in a more streamlined operation, potentially leading to cost savings and improved allocation of resources towards more profitable segments. However, the financial impact will depend on the terms of the sale, including the sale price and how the proceeds will be used. Investors should monitor how this divestiture affects CPSI's revenue streams and whether it leads to an improved bottom line in subsequent financial reporting periods.
From a market perspective, the transaction between CPSI and PointClickCare may alter the competitive landscape of the healthcare technology industry. PointClickCare's acquisition of AHT could expand its customer base and product offerings, potentially increasing its market share. This move might pressure competitors to evaluate their positions and consider similar strategic partnerships or acquisitions to maintain market relevance.
For existing customers of AHT, the transition to PointClickCare's platform will be a critical factor to watch. Customer retention and satisfaction levels post-acquisition will offer insights into the success of the integration process and the cultural fit between the two organizations. The ability of PointClickCare to maintain AHT's service levels and product quality will be instrumental in retaining AHT's client base and ensuring a smooth transition.
The focus on post-acute care EHR solutions is a response to the growing demand for specialized healthcare technology that supports the unique needs of long-term care providers. The acquisition of AHT by PointClickCare could enhance their capabilities in this domain, offering a more comprehensive suite of services to post-acute care providers.
As healthcare providers increasingly seek integrated technology solutions that can manage patient care across different settings, companies like PointClickCare that offer a broad range of EHR services may gain a competitive edge. The success of this acquisition will depend on how effectively PointClickCare can integrate AHT's technology and maintain the level of service that existing AHT customers expect. This transaction could set a precedent for similar acquisitions in the healthcare technology space, as companies seek to broaden their offerings to meet the evolving needs of healthcare providers.
Chris Fowler, president and chief executive officer of CPSI, stated, “As part of our ongoing business transformation, we have made the decision to divest AHT and therefore discontinue development of the AHT product. We believe PointClickCare is an ideal partner for existing AHT customers due to PointClickCare’s high level of service and exclusive focus on delivering EHR solutions for the post-acute care markets. PointClickCare and AHT share similar cultures and values, making this an ideal fit for AHT, its clients and employees. We are confident this transaction will benefit our post-acute clients and support their objective to continue to deliver the highest quality of care.”
“With a more focused strategy, we can build upon our strong foundation and continue to pursue new market opportunities that deliver greater value to our clients, communities, and shareholders. We remain committed to supporting providers across the care continuum with our proven RCM and EHR solutions that improve the financial health of healthcare organizations, enhance the delivery of quality care, and promote engagement between providers and patients,” added Fowler.
About CPSI
CPSI has over four decades of experience in connecting providers, patients and communities with innovative solutions that support both the clinical and financial side of healthcare delivery. We provide business, consulting, and managed information technology (IT) services, including our industry leading HFMA Peer Reviewed® suite of revenue cycle management (RCM) offerings, to help streamline day-to-day revenue functions, enhance productivity, and support the financial health of healthcare organizations. Our patient engagement solutions provide patients and providers with the critical information and tools they need to share existing clinical data and analytics that support value-based care, improve outcomes, and increase patient satisfaction. We support efficient patient care across an expansive base of community hospitals with electronic health record (EHR) product offerings that successfully integrate data between care settings. We make healthcare accessible through data-driven insights that support informed decisions and deliver workflow efficiencies, while keeping patients at the center of care. We are a healthcare solutions company. We clear the way for care. For more information, please visit www.cpsi.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potential,” “may,” “continue,” “should,” “will” and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to the Company’s ongoing business transformation, including the anticipated benefits to the Company of the divestment of AHT, together with other statements regarding the Company that are not historical facts, are forward-looking statements. We caution investors that any such forward‑looking statements are only predictions reflecting the best judgement of the Company based upon currently available information and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause the Company’s actual results, performance or plans to differ materially from those projected in the forward‑looking statements. Such factors may include: risks associated with the Company’s business strategy, including that the Company may not be successful in pursuing new market opportunities and delivering value to clients, communities and shareholders; unexpected costs, liabilities, charges or expenses resulting from the Company’s divestment of AHT; risks related to future opportunities and plans for the Company following the divestment of AHT, including uncertainty of the expected financial performance and results of the Company following the closing of the divestment; any disruptions from the divestment of AHT, making it more difficult to conduct business as usual or maintain relationships with customers, employees or suppliers; the inability to retain key personnel; and the possibility that if the Company does not achieve the perceived benefits of the divestment as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline; and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240116135635/en/
Tracey Schroeder
Chief Marketing Officer
tracey.schroeder@cpsi.com
(251) 639-8100
Source: CPSI
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