It’s been tough for Allscripts ever since they underestimated the time to integrate the code from Eclipsys that they acquired in 2010. Basically the 4th quarter was flat and the company is receiving renewals from several clients. Integration and code rewriting has been a main stay around Allscripts for a number of years since they grew by acquiring other technologies. Recently too their former corporate auditor has been charged with inside trading. If things get tight though and outsourcing is needed, you have good old United Healthcare that wants to to the implementation of a new system and more. They are ready to jump in with both GE and Epic medical records a well, and hint, it’s not for free: )
United Healthcare (Optum Insight Subsidiary) Wants To Be Your Allscripts, Epic And GE Centricity EHR Consulting Service Starting With Implementation And Beyond
“OptumInsight experts bring significant industry knowledge, solid experience, and Allscripts™ domain expertise to each engagement. Our consultants’ unique skills and practical approaches support efficient, effective, and successful EHR implementation.”
In addition the company had some interesting law suits out there over contract awards a while back. If you go to a Minute Retail Clinic in a CVS store, if not now then soon you will find the “Noctors” or PAs using medical records supplied by Allscripts. So they have a lot out there, just making money is the issue. All the problems seemed to have begun when the company tried to skip around that their code to integrate Eclipsys was not complete…hey does this sound anything like Healthcare.Gov? It was funny as I had analysts asking me about what the deal was back then…I said too much code and not enough time…Chapter 30 of the Attack of the Killer Algorithms below…and cost the CEO his job for lying about code, but nothing like that happened with Healthcare.Gov.
Class Action Lawsuit Filed Against Allscripts For Misleading Investors With Merging Data Systems–Too Much Code and Not Enough Time – Attack of the Killer Algorithms Chapter 30
They had to go back and get some help from Microsoft with the merging of Allscripts and Eclypsis.
In addition there’s also the patent lawsuit from MMRGlobal relative to the Universal Health Record Technologies used and as I understand that is still on going with Walgreens facing the same potential patent violations too relative to the PHR system they use at their retail clinics. I think most of the lawsuits filed over contracts have pretty much gone away and Allscripts has changed course with a new model for client retention. BD
But it still wasn't enough to reach revenue levels from the previous year or to lift the healthcare information technology company out of the red. Allscripts ended 2013 with a net loss of $104 million on revenue of $1.37 billion, down from $1.45 billion in 2012.
Allscripts has struggled in the past few years through a troubled integration of Atlanta-based hospital IT firm Eclipsys Corp., which it acquired in 2010 for $1.3 billion in stock. That, plus a shakeup in management and a failed attempt to sell the company, created what Chief Financial Officer Rick Poulton called a tumultuous time for Allscripts.