Practice Fusion

01 / WHAT IT BUILT

What the company did

Practice Fusion was a San Francisco-based cloud EHR (electronic health records) company founded in 2005. Its affordable, certified cloud EHR targeted traditionally hard-to-reach small, independent physician practices, supporting 30,000 ambulatory practices and 5 million patient visits a month. Backed by Founders Fund, Kleiner Perkins and others, it raised over $150 million and was once talked of as a $1.5 billion IPO candidate.

03 / EVENT HISTORY

Events in the structured record

1. 2005
   Founded

   Practice Fusion founded in San Francisco as a cloud-based EHR for small practices.

2. 2013
   $70M Series D

   Raised a $70 million Series D led by Kleiner Perkins; by mid-2015 it swapped its founding CEO and cut 25% of staff.

3. 2018
   Sold to Allscripts

   In January 2018 Practice Fusion was sold to Allscripts for $100 million cash - roughly two-thirds of what it had raised - in what was widely called a fire sale. Concerns over a DOJ investigation led Allscripts to rescind an initial $250 million offer.

4. 2019
   DOJ settlement

   Allscripts agreed to pay $145 million to settle the DOJ's civil and criminal investigation into Practice Fusion's pre-acquisition kickback and HIPAA violations.