The merger actually took place back in 2010 and both companies have a lot of EMR/EHR technologies. Allscripts was already a bundle of merged technologies over the years. So what does this say about the sales of electronic medical records, is it down all over or are folks buying other products? All over the US IT expenditures are beginning to fall within and without Healthcare too. How much can one afford to sell and use.
The company was even buddying up with Humana to give incentives for the purchase of their systems too. Maybe that was it with getting too close to insurers? I said a while back that would be the next collaboration and some insurers like UnitedHealthcare via owned subsidiaries already market 3 branded medical record systems. The Allscripts deal used a company that had a big proud spot on their website with a Newt Gingrich endorsement to aggregate data:)
Allscripts And Humana Collaborate to Provide Decision Support Software for MDs Along With Financial Assistance and Incentives For Adopting Allscripts EHR System
Back on track here it seems that most of folks that left were from the Eclipsys side of the table. The CEO said delayed commitments were part of the reason for the drop, and that happens when doctors and hospitals are tight or running out of money. Being I worked and integrated desktop software that was much simpler in nature a few years ago, this is becoming a big task and required tons of programmers to merge all of this. Time will tell if the CEO stays in place and if their new dynamic “merged” program will fit the bill and oh yes, still be affordable as someone has to pay those programmers for this massive project:) BD
Electronic health record vendor Allscripts surprised Wall Street today by announcing that net earnings for the first quarter were down by half to $5.8 million on revenues of $364.7 million—a 9% increase. Allscripts’ stock fell 45% as a result. Chief executive officer Glen Tullman blamed the drop on “delayed commitments from them [clients] as they wait for us to introduce new releases and demonstrate more robust integration.”
The bigger surprise, however, was the firing of chairman Phil Pead, the resignation of CFO Bill Davis for another job, and the resignation of three board members who didn’t agree with the decision to terminate Pead. The now ex-chairman was CEO of Eclipsys, when it merged two years ago with Allscripts which wanted to gain entry into the hospital market.
Those who had adopted a wait-and-see attitude over the new product might decide to drop Allscripts altogether from consideration. Competitors, such as Cerner and Epic would also no doubt be ready to swoop in, and offer themselves as solid alternatives.