I have to admit I did not see this coming but it makes a great deal of sense. A payroll and HR company like ADP would have a significant number of small medical practices as clients who like and trust them. Being able to offer EHR and Practice Management options directly to that customer base would be very appealing. They should also be able to offer their payroll and HR services to AdvancedMD’s 4,100 practice customers. Makes a lot of sense, assuming the undisclosed price was right.
ADP ®, a leading provider of human resource, payroll and benefits administration services, today announced that it has acquired AdvancedMD, a highly respected, privately-held provider of practice management (PM) and electronic health records (EHR) solutions targeting small and mid-sized medical practices.
Ranking among the top 10 PM and EHR providers today, AdvancedMD’s innovative, cloud-based solutions are utilized by more than 10,000 physicians in 4,100 practices and by more than 300 regional billing partners across the United States. At the same time, ADP’s Small Business Services currently provides an array of integrated HR, payroll and benefits outsourcing services to more than 45,000 physicians in approximately 13,500 small to mid-sized practices. By leveraging the collective offering of AdvancedMD’s PM and EHR solutions, and combining that with ADP’s full set of services and long-standing history of serving medical professionals, ADP is now uniquely positioned as an integrated, single-source provider of Medical Practice Optimization.
Jan Siegmund, ADP’s chief strategy officer, commented, “With a trusted brand, best-in-class solutions, and experienced management team, AdvancedMD is a highly strategic fit with ADP and will enhance our offerings to small- and medium-sized medical clients. A partnership with ADP means that physicians can dedicate themselves to what they care about most— patient care —while letting ADP take care of the rest. With our newly combined team, ADP and AdvancedMD will compete effectively for the small- and mid-sized physician practice market, which is going through a rapid technology adoption cycle and moving aggressively toward outsourced solutions—clearly ADP’s strength.”
“Becoming a part of ADP is a terrific opportunity that creates immediate and compelling benefits for our customers, our business and our employees,” said Eric Morgan, president and chief executive officer of AdvancedMD. “AdvancedMD will benefit from becoming part of a global company with extensive resources and a strong reputation built on a foundation of superior client service. Emerging technology standards, coupled with incentives related to the Health Information Technology for Economic and Clinical Health (HITECH) Act enacted as part of the American Recovery and Reinvestment Act (ARRA) of 2009, are also spurring medical practices to evaluate and adopt electronic health record systems. Together, we will be in an excellent position to capitalize on the attractive long-term growth prospects of physicians seeking cloud computing-based solutions to the clinical and administrative aspects of their practices.”
Based in Salt Lake City, Utah with approximately 200 employees, AdvancedMD has achieved rapid and sustained growth since its founding in 2002.