Leading vendor of cloud-based services for physician practices
and inpatient settings,
) recently announced that it will team with MedOasis to provide a
billing offering for anesthesia cases. This offering will
incorporate MedOasis' contract and compliance knowledge along
with coding for anesthesia procedures, with Athenahealth's claims
The outcome of this amalgamation of the knowledge of the two
companies will be a improved billing product for anesthesia
cases. Its specific rules for payors will lead to better cash
flow. The offering takes its account complications inherent to
MedOasis is committed to aid anesthesia practices improve
their cash flow and income. The company manages both the
collection and billing functions for its clients.
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 is expected to help 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 physician
practices. Its EHR product (athenaClinicals) is a key player in
We believe that sales of athenaClinicals are likely to remain
robust. 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's medical practices.
Athenahealth is geared to enter the enterprise segment through
its strategic alliance with Microsoft (MSFT) 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
Though the federal stimulus will gradually wind 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.
Quality Systems Inc.
Allscripts Healthcare Solutions, Inc.
) are two other well-known players in a crowded field.
The stock currently retains a Zacks Rank #5 (Strong Sell)
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