Back to blog

What You Need to Know About Luminello's Acquisition

Michael Reider

Oct 12, 2024

Luminello has been a favorite among many mental health professionals, and for good reason. The platform's user-friendly interface has made it accessible to even the most inexperienced users, helping practices function smoothly with its scheduling and calendar management capabilities. The drag-and-drop features and automated reminders have simplified appointment management for many practitioners.

One of Luminello's biggest draws has been its affordability. It has provided various pricing options tailored to single practitioners and small practices, making it a cost-effective choice for many. Additionally, Luminello has integrated seamlessly with other critical technologies, such as electronic health records (EHR) systems and accounting software, which has greatly improved productivity for many users.

The software also offers a comprehensive support system, including tutorials and webinars, to help users get the most out of their product. Its commitment to continuous improvement means that features are regularly updated based on user feedback, ensuring that the platform evolves to meet the changing needs of mental health practitioners.

However, the recent acquisition of Luminello by SimplePractice has raised questions about the future of this beloved platform. SimplePractice, owned by EngageSmart, which is in turn owned by Vista Equity Partners Management, has announced the shutdown of Luminello. This decision has left many users, particularly solo practitioners, in a difficult position.

The transition process has been far from smooth. Users were given a mere two months to research, select, and migrate to a completely new platform before their current EHR shut down. This time pressure has caused significant stress for busy psychiatrists running small private practices. The short notice has made it challenging for many to thoroughly evaluate their options and make an informed decision about their practice management software.

Moreover, there have been issues with data migration and access. Some users have reported problems with the bulk download function for exporting charts as PDF files. The service has worked intermittently, sometimes taking over a week to generate the zip file. This uncertainty has compelled some users to request their downloads in advance, only to find that Luminello had disabled the button after a single use, leaving out any patient care information generated after the initial request.

Communication about the transition has been generally confusing and poor. Users were initially told that access would become 'read-only' on a specific date, but instead, they were greeted by only a bulk download button, with no ability to actively look at the EHR contents. This lack of clarity and consistency has further complicated the transition process for many practitioners.

While SimplePractice is reportedly a decent product with a clean design and simple-to-use interface, the hasty transition and poor communication have left many Luminello users feeling frustrated and undervalued. The situation raises important questions about the impact of private equity acquisitions on healthcare technology and the prioritization of business metrics over user experience and patient care.

The Acquisition: SimplePractice Buys Luminello

Details of the acquisition

On August 3, 2023, SimplePractice, an EngageSmart solution, announced its strategic agreement to acquire the assets of Luminello 1. This move has significant implications for the mental health practice landscape. Luminello, known for its electronic medical record (EMR) and practice management platform, has been supporting thousands of solo and small group psychiatrists, psychiatric nurse practitioners, psychologists, and other prescribing medical professionals.

The acquisition aims to expand SimplePractice's presence in the psychiatric segment of the mental health market. By incorporating Luminello's distinct workflows, features, and functionality, including e-prescribe capabilities, SimplePractice expects to offer a greater range of services to its growing practitioner base 1. This expansion is particularly focused on meeting the needs of multi-disciplinary group practices, which often include both prescribers and non-prescribers to address complex and acute mental health diagnoses.

Financial aspects

While the exact financial terms of the deal were not disclosed in the official announcement, reports suggest that the acquisition was valued at approximately $19.60 million 2. This substantial investment underscores the perceived value of Luminello's user base and technology in the mental health practice management sector.

Reasons behind the merger

The primary motivation behind this acquisition appears to be SimplePractice's desire to strengthen its position in the mental health market, particularly in serving prescribers. Luminello's expertise in this area complements SimplePractice's existing capabilities, potentially creating a more comprehensive solution for mental health practitioners.

Jonathan Seltzer, President of SimplePractice, expressed enthusiasm about working with the Luminello team and bringing the benefits of SimplePractice to Luminello's customers 1. The merger is expected to create meaningful value for current and future customers, as well as their patients, by combining the strengths of both platforms.

Another key factor driving this acquisition is the potential to alleviate administrative burdens for practitioners. Both SimplePractice and Luminello were founded by clinicians with the goal of simplifying the business aspects of running an independent solo or small group mental health practice 1. By joining forces, they aim to further streamline processes and improve efficiency for mental health professionals.

However, the acquisition has not been without controversy. Some users have expressed concerns about the rapid transition and potential disruptions to their practices. There have been reports of issues with data migration and access to patient information, which has caused stress for busy psychiatrists running small private practices 2.

As the mental health industry continues to evolve, this acquisition represents a significant shift in the landscape of practice management software. While it promises potential benefits in terms of expanded features and functionality, the transition process and its impact on current Luminello users remain areas of concern that will likely shape the future of this merger.

Impact on Luminello Users

The acquisition of Luminello by SimplePractice has had significant consequences for Luminello users, particularly solo practitioners and small group practices. The transition process has been challenging, with users facing a tight timeline, changes in features, and data migration concerns.

Transition timeline

The transition timeline has been a source of stress for many Luminello users. Solo practitioners were initially given just two months to research, select, and migrate to a new platform before their current EHR shut down 1. This short notice has put considerable pressure on busy psychiatrists running small private practices. The timeline for group practices was initially longer, extending to June 14, but was later changed to May 15, adding to the confusion 1.

To assist users with the transition, SimplePractice has organized a series of live Q&A webinars hosted by experts from both Luminello and SimplePractice 2. These sessions cover topics such as migration and data transfer, ePrescribe, insurance billing, and getting started with SimplePractice. While these resources aim to help users navigate the change, the compressed timeline has still been a significant challenge for many.

Changes in features and functionality

The transition from Luminello to SimplePractice has brought about changes in features and functionality that users need to adapt to. One of the most significant changes is the current lack of certain key features in SimplePractice that were available in Luminello. For instance, SimplePractice does not yet have labs, snippets or dot-phrases, or e-prescribe capabilities 3. These missing features are crucial for running a medical practice, making the transition particularly challenging for physicians.

Additionally, some users have reported issues with previously available features in Luminello. For example, the lab-ordering tab has disappeared for some users, and the Luminello calendar has been intermittently showing empty appointment slots 3. These changes and inconsistencies have made it difficult for practitioners to maintain their usual workflow during the transition period.

Data migration concerns

Data migration has been a major concern for Luminello users transitioning to SimplePractice. Luminello created a bulk download function to export charts as PDF files, but the service has worked intermittently and sometimes took over a week to generate the zip file 1. This uncertainty has compelled some users to request their downloads in advance, only to find that Luminello had disabled the button after a single use, leaving out any patient care information generated after the initial request 1.

Furthermore, the data export process has not been comprehensive. Currently, SimplePractice is only able to import the client list, while clinical documentation, diagnosis/treatment plans, billing history, and existing calendars cannot be directly imported 4. This limitation means that users need to manually transfer or recreate significant portions of their practice data.

The transition has also raised concerns about data access and security. Some users have reported difficulties in accessing their patient information during the transition period, with Luminello switching to an 'export-only mode' instead of the promised 'read-only' access 1. This change has limited users' ability to review their EHR contents and access important information such as calendars and billing data.

These challenges in data migration and access have not only caused stress for practitioners but have also raised concerns about continuity of care and the potential for data loss during the transition process.

SimplePractice vs Luminello: Key Differences

Feature comparison

The acquisition of Luminello by SimplePractice has brought about significant changes in features and functionality for users. While SimplePractice offers a range of tools to run a mental health practice, some key differences have emerged. Notably, SimplePractice initially lacked several features that were essential for medical practices, particularly those using Luminello's electronic health record (EHR) system.

One of the most significant differences is the absence of certain critical features in SimplePractice that were available in Luminello. For instance, SimplePractice initially did not have lab integration, snippets or dot-phrases, or e-prescribe capabilities 3. These missing features have made the transition challenging for physicians who relied on these tools in their daily practice.

However, SimplePractice has been working to address these gaps. They now offer e-prescribe functionality, which is crucial for many practitioners 3. The platform also provides a range of other features, including telehealth, secure messaging, mobile apps, and a client portal 4. These additions aim to enhance the overall practice management experience.

Pricing changes

The transition from Luminello to SimplePractice has also brought about changes in pricing structures. While specific pricing details are not provided in the available information, it's worth noting that some users have reported unexpected billing issues during the transition period.

For instance, there have been reports of Luminello continuing to bill some customers even after the service entered 'export-only' mode 1. This has caused frustration among users who were already dealing with the challenges of migrating to a new platform.

User interface and experience

SimplePractice offers a different user interface and experience compared to Luminello. Many users have noted that SimplePractice has a clean design and is generally simple to use 3. This aligns with the platform's goal of simplifying the business aspects of running an independent solo or small group mental health practice.

However, the transition to SimplePractice has not been without its challenges. Some users have reported difficulties in adapting to the new system, particularly in areas where SimplePractice's functionality differs from Luminello's. For example, the note-taking feature in SimplePractice functions differently from traditional EHRs, with notes essentially being generic textboxes that can be edited at any time 3.

Another notable difference is in terminology. SimplePractice refers to patients as "clients," which some medical professionals find less appropriate for their practice 3. This change in language reflects the platform's roots in serving therapists and counselors rather than physicians.

The transition process itself has also impacted the user experience. Many Luminello users have faced challenges with data migration, limited access to their previous records, and a compressed timeline for switching platforms 1. These factors have contributed to a less-than-smooth transition for many practitioners.

In conclusion, while SimplePractice offers a range of features and a user-friendly interface, the transition from Luminello has highlighted significant differences between the two platforms. As SimplePractice continues to evolve and address the needs of former Luminello users, it remains to be seen how these differences will impact the long-term satisfaction of mental health professionals using the platform.

Conclusion

The acquisition of Luminello by SimplePractice has had a significant impact on the mental health practice management landscape. This merger has an influence on thousands of solo and small group practitioners, bringing about changes in features, pricing, and user experience. The transition process has been challenging for many users, with concerns about data migration, limited access to previous records, and a compressed timeline to switch platforms.

Looking ahead, the success of this acquisition will depend on how well SimplePractice addresses the needs of former Luminello users. The company's efforts to add new features and improve functionality will play a crucial role in retaining users and expanding its market presence. As the dust settles, mental health professionals will need to adapt to these changes and evaluate how the new platform aligns with their practice needs and goals.

FAQs

Who acquired Luminello?
Luminello was acquired by SimplePractice, a subsidiary of EngageSmart, which is further owned by Vista Equity Partners Management.

Did SimplePractice purchase Luminello?
Yes, SimplePractice acquired Luminello. This acquisition coincides with the launch of SimplePractice's new product, ePrescribe, which integrates specific Luminello workflows tailored for psychiatry into its core software, thereby enhancing its offerings to psychiatrists.