Leading vendor of cloud-based services for physician practices
and inpatient settings,
, Inc. (
) recently announced that it won three number 1 best in KLAS
slots for the 2012 awards in the Software and Services annual
Specifically, the company took the number 1, Best in KLAS for
- AthenaCollector (practice management) in two niches, namely
practices with 11 to 75 doctors and practices with 1 to 10
- athenaClinicals (electronic health record) for practices
comprising of 1 to 10 doctors.
These awards were handed out following an evaluation process
comprising of performance-related information, private interviews
and other measures. The Software and Services report of the 2012
Best in KLAS Awards found that 93% of clients would repeat
purchase of athenaCollector while 95% would again buy
athenaClinicals. Some 38,000 providers were using offerings
provided by Athenahealth in 2011 and 85% of qualified providers
met Stage 1 of meaningful use criteria.
Founded in 1996, KLAS is a research organization whose purpose
is to enhance delivery of healthcare. It provides reports based
on its own data analysis.
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
) 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.
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 competitors in a crowded field.
We currently have a Neutral recommendation on Athenahealth.
The stock currently retains a Zacks #4 Rank, which translates
into a short-term Sell rating.
ATHENAHEALTH IN (ATHN): Free Stock Analysis
CERNER CORP (CERN): Free Stock Analysis
ALLSCRIPTS HLTH (MDRX): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
QUALITY SYS (QSII): Free Stock Analysis
To read this article on Zacks.com click here.