Allscripts plans to divest medication services business

As part of the transaction, Allscripts intends to continue to offer medication services to existing and future clients of Allscripts under a co-marketing agreement.

Closing of the transaction is expected to be subject to customary closing conditions, but no assurances can be given that a definitive agreement for the sale will be entered into or that the conditions to consummating the transaction contained in any such definitive agreement will be met.

Allscripts’s medication services business (or prepackaged medications segment) provides point-of-care medication management and medical supply services and solutions for physicians and other healthcare providers.

Glen Tullman, CEO of Allscripts, said: “The proposed sale of our medication services business increases our focus on our core healthcare information technology businesses at a time when we expect electronic health records and electronic prescribing, along with our interoperability and connectivity efforts, to receive a substantial boost from the federal economic stimulus package.

“We want the total focus of the business to be on taking advantage of this opportunity to accelerate growth. The transaction would also provide the medication services business with an opportunity to invest and grow with the total focus of the new company.”