Allscripts Healthcare Solutions, Inc. MDRX recently extended its long-standing strategic alliance with Microsoft for five years. The deal will enable expanded development and delivery of cloud-based health IT solutions. The five-year extension will make Microsoft the cloud provider to Allscripts’ cloud-based Sunrise electronic health record (EHR) solution.
With respect to co-innovation, this extension will help transform healthcare with smarter and more scalable technology.
Notably, Allscripts’ Sunrise is a fully integrated EHR platform that connects all clinical and financial aspects of a hospital or health system for inpatient, emergency and outpatient care.
This deal will not only help Allscripts innovate further but also enhance its Sunrise EHR platform.
Significance of this Five-Year Extension
The COVID-19 pandemic has changed the face of healthcare and irrevocably altered the ways it is delivered. Across the world, provider organizations should make sure that they are equipped with innovative, interoperable, comprehensive and lower-cost IT solutions that can meet demands of the new normal.
The collaboration with Microsoft will enable Allscripts to deliver the tools required by caregivers in an efficient manner, which will lead to an improvement in clinical outcomes of their patients and operational performance of their organizations.
The strategic alliance is likely to help create a healthier future for patients worldwide on the back of such innovative solutions.
In June, Allscripts and its payer and life science business unit Veradigm recently inked a new partnership with the Patient Access Network (“PAN”) Foundation. The PAN Foundation is an independent, national 501(c)(3) organization committed toward helping federally and commercially insured people suffering from life-threatening, chronic and rare diseases by covering the costs of their prescribed medications.
In May, the company’s business unit Veradigm, a leading provider of data and technology solutions, recently signed a deal with Surescripts to enhance its Veradigm AccelRx specialty medication fulfillment solution with Surescripts Specialty Patient Enrollment. The deal will enable AccelRx to support healthcare providers in fulfilling prescriptions faster for hundreds of more types of specialty medications. This will be done by incorporating Surescripts’ extensive health information network, further streamlining healthcare providers’ management of specialty medication within their EHR workflow.
Per a report by Allied Market Research, the global healthcare IT (HCIT) market estimates that the market for HCIT solutions and services was $125 billion in 2015 and is projected to reach $297 billion by 2022, witnessing a CAGR of 13.2%.
Growing demand for quality healthcare services and solutions together with patient safety & care, proactive supportive government initiatives, and increase in acceptance of mHealth & telehealth practices have been driving this market. Further, growing adoption of smartphones and patient-doctor convenience are bolstering healthcare IT market growth.
Hence, this collaboration is a well-timed one for Allscripts.
Over the past year, shares of this Zacks Rank #4 (Sell) company have lost 42.4% against the industry’s growth of 11%.
Stocks to Consider
Some better-ranked stocks from the broader medical space include Quest Diagnostics Incorporated DGX, West Pharmaceutical Services, Inc. WST and Laboratory Corporation of America Holdings LH, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has an estimated long-term earnings growth rate of 7.6%.
West Pharmaceutical has a projected long-term earnings growth rate of 9.2%.
Laboratory Corporation has an estimated long-term earnings growth rate of 6.1%.
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Allscripts Healthcare Solutions, Inc. (MDRX): Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report
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