Uncommon Clarity – 06/14/10

JUN 20

Last week, AllScripts acquired Eclipsys in a consolidation move with meaningful industry ramifications.  Below is some of the commentary our team prepared for key clients in the wake of the deal.

  • Two pure-play EMR vendors from opposite sides of the market combine to create a leading “in-patient-through-ambulatory” HCIT enterprise
 
  • With the exception of Epic, this merger forms the only other end-to-end player in the market hence, upping the ante of what it means to truly be and end-to-end solutions provider, while also “arming” Allscripts with deep RCM capability
 
  • Ever since Eclipsys’ “.NET” challenges in 2004/2005 with SunriseXA, the Company has experienced a series of competitive set backs…which will seemingly diminish in the years ahead as the businesses are integrated into a unified platform….all on MSFT technology
 
  • ‘Text Book’ Glen Tullman (CEO, Allscripts):  As one of HCIT’s best leaders and innovators, Glen recognized the opportunities ahead for a unified end-to-end solutions suite…and, of course, as the first mover in this consolidation
 
  • athenahealth…Anybody Want to Partner? As Eclipsys and athenahealth had partnered so push clients in each other’s direction (as neither intended to enter each others markets), this relationship will likely terminate given Allscripts is a core competitor of athena.
 
  • More consolidation ahead? As we believe the long-term value will be created by unified clinical workflows (inside and out of the hospital), we expect to see same/similar consolidation ahead and, perhaps, an increased role of HIEs, if the bold move of Allscripts is not in the realm of possibility
 
  • Will iSOFT Ever Make Landfall? In light of iSOFT’s .NET Lorenzo product and historic collaboration with Eclipsys, we always viewed Eclipsys as the most likely domestic “beach head” if iSOFT were to ever make a run on the US hospital market.
 

The combined businesses will serve around 180,000 doctors, 1,500 hospitals and 10,000 nursing homes, hospices and home care centers and as part of the transaction, Misys will sell its stake in Allscripts for $1b.

Read our most recent research on Healthcare Compliance and mHealth, and if you attended AHIP in Las Vegas last week we’d love to know what you thought of the event.

To learn more, contact us at 952-253-5300…have a great week!

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Chris Hoffmann