Allscripts Healthcare Solutions, Inc.
), a leading player in the health care information technology
(HCIT) market, recently announced that Liberty Hospital, a
prominent public hospital on the I-35 highway between Liberty,
Mo. and the Iowan border, has inked a deal with Allscripts to
handle its IT requirements.
As per the hospital, the expanded scope of the agreement will
permit it to focus on delivery of health care. Allscripts will
focus on its core competence of managing IT systems at Liberty
Hospital. The agreement prepares Liberty Hospital to deal with
the evolving nature of health care delivery.
Liberty Hospital has at present 30 personnel managing its IT
systems. Following the agreement, these employees will join
We are of the opinion that acute and ambulatory care will
continue to converge in the future. In addition, Allscripts is
positioned to provide integrated clinical applications for health
care providers to satisfy their requirements and eventually
comply with an outcome-based reimbursement system.
As a potential takeover target, Allscripts presents a
lucrative opportunity for firms seeking entry into the HCIT
industry. It has a wide user base and enjoys many opportunities
vis-à-vis its peers. Its mergers with Misys and Eclipsys have
expanded opportunities and reach in practice management (PM) and
Electronic Health Record (EHR) markets substantially 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.
The HCIT market is competitive and price sensitive. Among
others, Allscripts faces strong competition from
Quality Systems Inc.
). Allscripts carries a Zacks Rank #3 (Hold).
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