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What: Shares of medical billing software specialist athenahealth
So what: While financial details weren't disclosed, the deal is easily athenahealth's largest given Health Management's expansive network of roughly 1,500 physicians operating in more than 300 locations across the country. Naturally, the news also deals a significant blow to rival Quality Systems
Now what: Analysts estimate that the deal could add roughly $20 million to $30 million to athenahealth's top line. "We are excited for the opportunity to work with one of the nation's largest and most progressive hospital companies," said Chairman and CEO Jonathan Bush. "Health Management's physician network will benefit from the power of cloud technology to constantly iterate and extrapolate from the collective clinical and operational knowledge and best practices of thousands of medical groups around the nation already on the athenaNet platform." Of course, with the stock busting through its 52-week high today and up about 100% over the past year, much of that optimism might already be baked into the price.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Quality Systems. Try any of our Foolish newsletter services free for 30 days.