Healtheon/WebMD in $4.8B deal for medical manager

Internet health care company Healtheon/WebMD announced today that it would purchase Medical Manager Corp. and its subsidiary, CareInsite Inc. for $4.8 billion in stock.

Based in Elmwood Park, N.J., Medical Manager provides physician practice management systems to almost 200,000 physicians; CareInsite offers Internet-based networking services to physicians, payors and health care providers.

Mark Anderson, a vice president at Stamford, Conn.-based Meta Group Inc., said the acquisition would increase Healtheon's presence in physicians' offices.

Medical Manager has the largest market share among companies that sell systems that provide applications for doctors, such as billing, accounts receivables and patient claims, said Anderson. "Now Healtheon has everything to run the administrative side of the business (in) physicians' offices," he said.

The acquisitions are likely to be completed by the end of June, the companies said.

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