I found this about a week ago and found it really really interesting. Here’s the numbers for the EMR behemoth Allscripts per HIT News:
The company [Allscripts] made $15.8 million in net income for the quarter, turning around a $6 million loss for the same period last year. Non-GAAP net income increased 45 percent, from $16.6 million a year ago to $24 million this year.
The sad part is that Allscripts went through a nice round of layoffs last year. I can’t find the number right now, but I remember it was pretty significant. Too bad they had to fire so many people while turning such a large profit. Seems like an opportunistic cut to me. I wonder how well Allscripts support was with all the cuts.
Another quote from the same article:
“We believe that 2010 will be the ‘Year of the EHR’ in which we expect to see significant acceleration in the adoption and utilization of healthcare information technology to improve quality and reduce cost,” said Glen Tullman, Allscripts CEO. “This is a once-in-a-lifetime market opportunity, driven by the American Recovery and Reinvestment Act.”
There’s no doubt that Glen Tullman is salivating over the $18 billion of EMR stimulus money that’s on the table. He probably should be since Allscripts is likely to make a killing off of the stimulus money.
I think all of this is also a very good sign for smaller EMR vendors as well. I expect a number of EMR vendors to scale to 500 or so installs and sell off for a very nice return in the next few years. I guess we’ll see if Glen’s right about this being the “Year of the EHR.”
remember Allscripts was acquired/merged with misys healthcare q4 last year. they branded under Allscripts. The loss mainly was due to consolidation from merge. the year to year comps really start now. Actuallu analyst community questioned if forward looking booking weren’t a bit low given overall EHR inertia
I figured the merger played a big role in Allscripts numbers. I wonder if Allscripts will be acquiring other EMR vendors this year that will affect their numbers also. Seems likely to me that they’ll try and buy more market share.
You also have to remember that Allscripts is a software vendor, which means a significant part of their expense is people and could be as high as 85%
Mike,
I’m sure you’re right about that. I also think it probably makes a lot of business sense to cut those people. As a public company, it’s all about the bottom line and returning good numbers for investors. Still unfortunate that so many lost jobs and they turn this kind of profit, no?
We would love to sell AllScripts as a vendor, but weren’t sure how to get onboard (while other EMR software providers have made it clear how to become an affiliate, a partner, a vendor or a VAR on their websites). Could you point me in the right direction?
EMR by ATG,
From what I hear it’s pretty hard to become a VAR for them. I’ve heard of one case in Florida where someone wanted to become one, but Allscripts was limiting the number that they had in the area and they already had enough. So, sorry that’s not likely much help.