Financial Decline, Departures Roil Allscripts

The stock price of physician/hospital software vendor Allscripts dropped 40.6 percent at the open of trading on April 27 after the company announced poor first quarter financial results, lowered expectations for the rest of 2012, and announced the departure of its chief financial officer and four board members including Chairman Phil Pead.

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Comments (3)
Vendor services do not drive changes in healthcare, the changes eminate from "delivery innovation". Health Information systems are a commodity and unfortunately - the technology changes so fast that it is hard to build a decent return on system investments before the system is considered "old". Little patches and updates won't do it - and all of the health information system's promise of great savings, have never bee substaintated in hard dollars. Allscripts is not alone in underestimating training and implementation costs and now that the real costs are being exposed - the grand illusion has lost it's luster to the medical practice that needs to be ultra careful on how it spends the health care dollar. The record of a sustainable model for EHR and clinical integration that has useful hard dollar value - is still yet to come.
Posted by DENNIS G | Friday, April 27 2012 at 4:03PM ET
The majority of EMRs today do not improve provider productivity .. they actually hurt it. The beneficiaries of these applications tend to be the policy people who want more data to ... well, lots of different things. Should practices automate? Yes, but the automation needs to be built around improved processes and defined achieveable benefits not an analyst's or a policy person's need for better data.
Posted by medworks | Monday, April 30 2012 at 1:25PM ET
"While Allscripts continued to win important new clients, including three new Sunrise Clinical Manager contracts in the quarter, a number of our clients and prospects delayed commitments as they wait for us to introduce new releases and demonstrate more robust integration. This dynamic, combined with the recent reorganization of our sales and service teams, were the primary factors that caused sales to be lower than our expectations."

Translation:

"We got new beta testers, sorry I mean customers, but our existing customers refuse to sink another cent into this until we can demonstrate that it works. We fired all of our sales staff who hadn't already quit, but that hasn't helped as much as we hoped."

Don't feel bad, though, that's business as usual in the digital business disciplines.
Posted by GERALD Z | Friday, May 04 2012 at 1:06PM ET
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