// startup autopsy
HealthFusion
Eighteen-year EHR survivor that became a consolidation prize in healthcare IT's roll-up era.
acquisition gone wrongFire Sale
Distressed acquisition below last-round valuation · Fatal mistake: HealthFusion's modest external funding relative to its scale left it exposed to acquisition by larger players once healthcare IT consolidation accelerated post-ACA.
| Founded | 1998 |
|---|---|
| Closed | 2016 |
| Country | USA |
| Sector | Healthtech |
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Key Events Timeline
FOUNDING
HealthFusion founded in San Diego to bring web-based practice management and EHR to small medical offices.
PRODUCT LAUNCH
MediTouch EHR platform launched, positioning HealthFusion to capitalize on federal Meaningful Use incentive programs.
FUNDING
Final external funding round of $2.24M raised as EHR adoption accelerates under ACA mandates.
CEO CHANGE
Leadership transition as company matures and explores strategic options amid healthcare IT consolidation wave.
SHUTDOWN
Quality Systems Inc acquires HealthFusion for ~$165M; 18-year independent operation ends as brand absorbed into QSI portfolio.