Allscripts

Allscripts

Business summary

  • Total revenue £404m up 5%1
  • As reported revenue £348m up 83%
  • Total order intake £303m up 7%1
  • Operating profit £83m up 28%1
  • Completed merger, rapid implementation on plan
  • Cross-sell opportunity exceeds $1 billion
  • Stimulus package has transformed market opportunity
  1. On a pro-forma like-for-like basis. See the financial review for a reconciliation to as reported measures.

Delivery updates

Get fit: completed (Mar 07-May 08)

  • Focus on ambulatory and connected community (achieved)
  • Revitalise product line - deliver new EMR and ASP offerings for physicians (achieved)

Win more: started (1-2 years)

  • Target 6-9% revenue growth
  • Cross sell to Misys Practice Management base
  • Build partner distribution network (achieved)
  • Ready the solutions and processes to ensure Allscripts is Stimulus Ready

Lead: ongoing (2-4 years)

  • Create connectivity solutions across the healthcare environment
  • Focus on clinical outcomes and quality
  • Be the market leader
Our business

The merger to form Allscripts-Misys Healthcare Solutions, Inc. (Allscripts) was completed on 10 October 2008. Misys plc has a majority interest in the company which is listed on NASDAQ (MDRX).

Allscripts is the clear leader in the US physician office healthcare IT market.

Our clients

Before the merger, Allscripts was recognised as a leader in the Electronic Health Record (EHR) market2 and Misys was the largest provider of practice management solutions to small-to-medium-size practices.3 We estimate that up to 90% of these practices lack an EHR, creating a cross-sell opportunity of more than $1 billion.4 The combined company has a client base of more than 150,000 physicians, 700 hospitals, and 7,000 post-acute and homecare organisations. By virtue of its size and ability to connect providers to other stakeholders across the healthcare community, Allscripts is uniquely positioned to help American healthcare organisations improve quality, reduce errors and lower costs.

Our solutions

Eighty per cent of all healthcare spending begins with physicians. That's why physicians are key to transforming healthcare, and are our primary focus at Allscripts. We provide solutions that speed critical information from physicians to practice managers to hospitals, connecting all points in between. For physician practices our solutions include: Electronic Health Records, Practice Management, ePrescribing, Revenue Cycle Management and Document Imaging. Our solutions for hospitals and post-acute facilities include Emergency Department Information Systems, Care Management/Discharge Planning and Post-acute Referral Management. Together, our full suite of connected solutions is helping to build an interconnected healthcare system that empowers physicians to deliver quality care more cost-effectively, no matter where they work.

We integrated the businesses quickly and effectively

The employees of Misys and Allscripts were guided by clientfocused values before the merger, and this shared culture has helped us integrate the two organisations quickly. We have also made rapid progress on consolidating the product portfolios around high-value solutions, and implementing efficient shared resources and processes. To that end, we completed the sale of non-core businesses, including our Physicians Interactive clinical education business unit, and our Medication Services business.

We have focused the business on the stimulus package

On 17 February 2009, the American Recovery and Reinvestment Act (ARRA) created the biggest single stimulus package in the history of healthcare, offering US physicians up to $44,000 each to implement and use a certified EHR. As the only company able to provide CCHIT-certified5 EHR solutions that meet federal requirements for physicians in every market segment, from small independent practices to the largest academic medical centres, Allscripts is ideally positioned to benefit from this historic stimulus.

In response to the opportunity, we have refocused Allscripts to be Stimulus-Ready. At year end we achieved strong increase in orders for EHR solutions and services.

We have the resources required to meet strong demand

We believe that ARRA will generate rapid growth and we have increased our EHR sales and distribution capacity in response. We now have 200 direct sales employees and a further 1,600 salespeople through partners in the new Allscripts Distribution Network. By working with trusted, market-leading distributors we are able to reach, serve and support many more clients, in a faster and more efficient way. Our objective is to maximise the EHR growth opportunity while ensuring we continue to meet and exceed our clients' expectations.

  1. On a pro-forma like-for-like basis. See the financial review for a reconciliation to as reported measures.
  2. We define leadership in the EHR market on the basis of our solutions' KLAS rankings.
  3. We define small and medium-size practices as those with fewer than 25 physicians.
  4. Allscripts estimate based on cross-selling Allscripts EHR solutions to customers using Misys Practice Management solutions.
  5. The Certification Commission for Healthcare Information Technology (CCHIT) Certified mark is the first industry consensus-based, consistent benchmark for ambulatory products.