Allscripts Healthcare Solutions
(
MDRX
), a leading player in the health care information technology
(HCIT) market, recently reported that it is engaged with
Microsoft Corporation
(
MSFT
) to develop its Allscripts Application Developer Program to
provide greater flexibility for healthcare customers. Their effort
to design an open system will permit more players to engage with
the Allscripts offering. For its part, Microsoft seeks to leverage
its expertise in the health care arena.
The two parties have over a decade of collaboration experience.
Recently, at the Allscripts Client Experience, attended by over
4,000 clients, the company showcased a Windows 8 version of its
portable Electronic Health Record (EHR) offering.
The health care information technology market is competitive and
price sensitive. Among others, Allscripts faces strong competition
from
Cerner Corp.
(
CERN
),
Quality Systems
(
QSII
) and
Athenahealth
(
ATHN
).
However, optimism about the growth prospects of select HCIT
service providers remains high under the Obama administration,
which passed a Stimulus package in 2009. Part of the Stimulus
package is aimed at increasing the use of EHR systems by medical
practitioners. While greenfield opportunities are currently
shrinking, the replacement market is growing.
The company has widened its user base after its mergers with
Misys and Eclipsys and increased cross-selling opportunities. We
believe that Allscripts is well positioned in the fast growing
business of selling EHR to physician practices as well as inpatient
settings.
We are of the opinion that acute and ambulatory care will
continue to converge in future. Also, that Allscripts is positioned
to provide integrated clinical applications for health care
providers to satisfy HITECH Act requirements and eventually comply
with an outcomes-based reimbursement system.
We have a long-term Neutral recommendation on Allscripts. The
stock currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating.
ATHENAHEALTH IN (ATHN): Free Stock Analysis
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