Leading vendor of cloud-based services for physician practices
) recently revealed that it accomplished the take over of
Epocrates, a pioneer of mobile health workflows and POC health
apps. The composite company is well placed to bring to market
fresh mobile workflows to meet the data requirements of
clinicians. Furthermore, Athenahealth's provider network of
40,000 now encompasses over a million clinicians from the
Epocrates set up.
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 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) designed for 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. In addition, the company will harness its newer products,
namely athenaCommunicator and athenaCoordinator.
Athenahealth 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's medical practices.
Athenahealth is geared to enter the enterprise segment through
its strategic alliance with
) and the acquisition of Proxsys, both completed in 2011. The
company has recently signed on, and executed several
enterprise-sized deals, which provide it with a credible and
referenceable client base. In early Jan 2013, Athenahealth signed
a definitive agreement to take over Epocrates, a provider of
point-of-care digital solutions in the healthcare industry. The
acquisition will enable Athenahealth to increase its user network
and improve its brand awareness.
Though the federal stimulus is winding down, the replacement
market has been growing. Competition is fierce and larger
competitors may benefit from the incumbency factor. Industry
stalwarts such as
) offer long-standing seamless products which integrate inpatient
and ambulatory-care systems.
Allscripts Healthcare Solutions, Inc.
) is another competitor in a crowded field. Athenahealth carries
a Zacks Rank #3 (Hold).
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