Fort Worth-based eRx Network is Bought Back by Change Healthcare for $219M After McKesson Split

After merging with McKesson, Change Healthcare spun out eRx Network to former shareholders. When McKesson exited, Change Healthcare had the option to buy the pharmacy tech company back.

A few months ago, Nashville-based Change Healthcare announced it was splitting from McKesson Corporation. Now, the health IT company is buying back a North Texas business it has history with, which also has ties to Irving-headquartered McKesson.

McKesson and Change Healthcare Holdings formed joint venture Change Healthcare back in 2017. The move combined Change Healthcare Holdings’ legacy business and McKesson’s technology solutions division, according to Fierce Healthcare. Following that, eRx Network was spun out as a pharmacy unit to former Change Healthcare shareholders.

When McKesson exited Change Healthcare, it gave the company the option to buy back Fort Worth-based eRx Network. So it did, for $212.9 million.

eRx Network is a provider of comprehensive, secure, data-driven solutions for more than 59,000 pharmacies. According to the company, it handles around 520 million ePrescribing transactions and processes 1.5 billion claims transactions annually. Last year, it generated about $67 million in revenue.

“Bringing eRx back into the fold will enable us to leverage our combined scale, breadth of solutions, and network capabilities to increase market penetration, advance innovation, and create new opportunities,” Neil de Crescenzo, president and CEO of Change Healthcare, said in a statement. “As a leader in delivering advanced technology solutions for pharmacies, providers, and pharmaceutical companies, eRx aligns with our strategy to reduce costs, improve outcomes, and enhance consumer engagement for our customers.”

Change Healthcare now has 100 percent of the ownership interested in eRx Network.

eRx aims to help pharmacies improve operational efficiency and optimize reimbursement through its real-time pharmacy network. Upon integration, providers are able to cost-effectively exchange electronic prescriptions with retail pharmacies. eRx also enables programs for customers like co-pay assistance.

Change Healthcare said adding the company will bring strategic benefits, such as “a broader solutions portfolio to offer pharmacies, the ability to serve patients, providers, and payers more comprehensively, and the potential to enter new markets.”

Change Healthcare provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes. The company calls itself a “key catalyst of a value-based healthcare system.”

Coinciding with the eRx news, Change Healthcare also announced it sold its Connected Analytics business to Chicago-based Kaufman Hall for $55 million.

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