Allscripts-Misys Healthcare Solutions Inc. (MDRX) is looking to extend its influence in the electronic health records by purchasing Eclipsys (ECLP) for $1.3 billion in stock.Allscripts is the dominant player in providing physicians offices with electronic record-keeping systems, while Eclipsys provides similar services to hospitals. Combining the two groups should give Allscripts tremendous reach.
This is a smart move for Allscripts as the U.S. government -- through the American Recovery and Reinvestment Act -- is preparing to provide $30 billion in federal funding to hospitals and physicians who adopt electronic medical records. And if Allscripts can position itself correctly, a large percentage of that money could end up flowing to them.
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