HR, payroll, and benefits services provider ADP announced this afternoon that it has acquired AdvancedMD from Francisco Partners. The 200-employee, Salt Lake City-based AdvancedMD is a leading provider of practice management, revenue cycle, and electronic medical records systems. It has more than 10,000 physician users in 4,100 practices.
In the announcement, ADP positions itself as “an integrated, single-source provider of Medical Practice Optimization” for small- to mid-sized practices. The company’s Small Business Services group provides HR, payroll, and benefits services to 45,000 physicians in 13,500 practices.
ADP Chief Strategy Officer Jan Siegmund was quoted as saying, “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.”
AdvancedMD was acquired by Francisco Partners in January 2008.
The acquisition appears to mark ADP’s entrance into the PM, EMR, and physician billing market. The company has $9 billion in annual revenue and a market cap of $24.5 billion.