Leading vendor of cloud-based EHR and other services for medical
practices,
Athenahealth
(
ATHN
) recently revealed that it will meet the requirements of two
Federally Qualified Health Centers (FQHCs), namely Community Health
Programs and Manet Community Health Center. The inking of these two
deals is subsequent to Athenahealth's operationalization of its
services at Three Lower Counties Community Services and Hudson
Headwaters Health Network.
As community based and federally funded entities, FQHCs provide
primary care to all age groups, irrespective of a person's ability
to pay for care. Community Health Programs is a multi-location FQHC
in western Massachusetts. Manet Community Health Center is another
multiple location FQHC based in North Quincy, Massachusetts. Both
FQHCs are slated to implement Athenahealth's range of offerings
comprising athenaCollector, athenaClinical and
athenaCommunicator.
Athenahealth's web-based deployment provides a low-cost scalable
service while its flexible rules engine leads to higher efficiency
in claims settlement. The Software-as-a-Service (SaaS)-based
approach allows for a more flexible delivery mechanism that helps
Athenahealth to win deals. The company has traditionally enjoyed
high customer satisfaction rates, which facilitates a larger number
of referrals.
Athenahealth's unique business model makes it a strong provider
of RCM services (athenaCollector) to small physician practices. Its
EHR product (athenaClinicals) is a key player in ambulatory
settings. We believe that sales of athenaClinicals are likely
to remain robust, given the opportunity for physicians to earn
incentive payments under the federal stimulus. In addition, the
company will harness its newer products, namely athenaCommunicator
and athenaCoordinator.
The company should benefit from its extensive athenaCollector
client base, as only a minority of its subscriber base also
utilizes athenaClinicals. Cross selling represents a real growth
opportunity in the near term. In this regard, Athenahealth has made
rapid strides in capturing the EHR business of physician practices.
However, this segment is shrinking as hospitals increasingly absorb
physician practices.
Athenahealth has geared itself for the enterprise segment
through its strategic alliance with
Microsoft
(
MSFT
) and the acquisition of Proxsys, both in 2011. The company has
recently signed on, and executed several enterprise-sized deals,
which provide it with a credible and reference-able client
base.
Though the federal stimulus will gradually wind down, the
replacement market is growing. Competition is fierce and larger
competitors may benefit from the incumbency factor. Industry
stalwarts, such as
Cerner
(
CERN
), offer long-standing seamless products integrating inpatient and
ambulatory-care systems.
Quality Systems
(
QSII
) and
Allscripts Healthcare Solutions
(
MDRX
) are two other well-known competitors in a crowded field.
ATHENAHEALTH IN (ATHN): Free Stock Analysis
Report
CERNER CORP (CERN): Free Stock Analysis Report
ALLSCRIPTS HLTH (MDRX): Free Stock Analysis
Report
MICROSOFT CORP (MSFT): Free Stock Analysis
Report
QUALITY SYS (QSII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research