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Allscripts Idea Proposal (MDRX)

Allscripts Idea Proposal (MDRX)
 

How do Allscripts’ EHR solutions like Sunrise and Paragon measure up to competitors? Are they driving growth?

Report Available: January 16, 2020

 

Blueshift’s initial research found MDRX entrenched in the booming healthcare IT market. The electronic health records (EHR) and electronic medical records (EMR) market is expected to experience significant increases over the next few years as it enters a period referred to as its “awkward adolescent stage of growth.” This market is highly fragmented, intensely competitive, and constantly changing. MDRX is a major player in the space and has experienced its share of competitive wins and losses. Going forward EHR vendors that improve user interfaces, reduce physician burnout, and provide flexible end-to-end and/or collaborative solutions will prevail.

Observations

  1. Expanding life sciences and healthcare industries, along with government initiatives to promote proper maintenance of patients’ electronic health records, are expected to propel the EHR/EMR market to a value of $38 billion by 2025 with a 5.5% CAGR from 2019 to 2025.
  2. MDRX’s Q3 results beat the Street’s earning expectations by 6.3% but narrowly missing its revenue projection by 1.2%. Revenue was up 1.1% year to year. Bookings were up 19.2% from the prior-year quarter and the backlog was $3.9 billion. Growth was spread across the Provider inpatient and outpatient products like Sunrise and Paragon and its Veradigm franchise. MDRX confirmed full-year bookings between $1.05 billion and $1.10 billion and Q4 revenue growth in the mid-single digits. The company expressed confidence in future growth opportunities in both its Provider and Veradigm businesses.
  3. MDRX’s Sunrise platform provides a single patient record to deliver more informed patient care. It includes business intelligence and analytics solutions and serves as an end-to-end platform from patient admission to discharge while combining clinical and financial data for the hospital and health system. Paragon is a platform designed for rural and community hospitals and single healthcare providers. It provides workflow intelligence to locate relevant patient information, presenting the right information at the right time to improve efficiency and patient outcomes.
  4. MDRX’s confidence stems in part from recent contract wins and extensions. Eight U.S. hospitals and health systems have implemented or announced plans to deploy MDRX’s EHR software this year. MDRX also won an international contract when the Gloucestershire Hospitals NHS Foundation Trust contract was secured. The crowning achievement in Q3 came when MDRX and Northwell Health announced a contract extension for its Sunrise platform to 2027 and a partnership to jointly develop an AI powered next-gen EHR system.
  5. MDRX has also received some industry recognition and awards. Frost & Sullivan named MDRX the recipient of the 2019 U.S. Company of the Year for its for its Advanced RCM Services, and Black Book rated MDRX the #1 vendor out of 68 EHR companies for customer satisfaction.
  6. But MDRX faces challenges from industry stalwarts CERN and Epic. The KLAS annual report released in April, S. Hospital EMR Market Share 2019, suggests that the 2018 trend of MDRX losing Sunrise and Paragon contracts will continue. The report found the following:
  • KLAS reports only four key vendors remain in the large provider market space—Epic (with 163 hospitals), CERN (77 hospitals), MDRX (16 hospitals), and Meditech (12 hospitals).
  • Large (500+ bed) hospitals and health systems almost exclusively choose Epic, switching from MDRX or CERN.
  • In 2018, 14 hospitals – nine of which came from one large organization – left the Sunrise Clinical Manager (SCM) platform for Epic.
  • 16 hospitals left the Paragon platform, moving to CERN, Epic, Meditech, or CPSI.
  • Allscripts had a total of 33 hospital losses in 2018, five of which were due to customer consolidation.

 

How do Sunrise and Paragon compare to competitors? How are they fighting off challenges from Epic and CERN? What are the likely growth rates for Sunrise and Paragon? Have Sunrise and Paragon reversed 2018 contract loss trends or have they continued in 2019? Where do these two products go from here? Are Sunrise and Paragon offering any new enhancements or improvements? What are the changes? Are these improving or hurting the products? What is MDRX doing to win contracts? How significant is the joint development venture with Northwell Health to develop MDRX’s next-gen AI EHR platform?  To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Hospital CIOs, Healthcare professionals using MDRX, Healthcare professionals using competitor products, EHR sales channel, MDRX partners, and Industry specialists.  

 

Companies: Allscripts Healthcare Solutions Inc. (MDRX), Cerner Corp. (CERN), Computer Programs and Systems Inc. (CPSI) General Electric Co. (GE), Nextgen Healthcare Inc. (NXGN)

 

Research Begins: December 16, 2019

 

To see other ideas Blueshift Research is currently working on, please click here.

 

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