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Allscripts May Sell Out To Private Equity Buyer

Posted on October 5, 2012 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies. Contact her at @ziegerhealth on Twitter or visit her site at Zieger Healthcare.

Update: You might be interested to read this post on Allscripts Plans to Discontinue MyWay.

Having just gone through the hell of a board gone wild, perhaps Allscripts’ leadership doubts it has the ability to govern.  Or maybe it’s just bracing for the fresh hells that EMR companies will face when the industry’s Big Consolidation begins (something we all know will happen, though not when). Either way, it seems that Allscripts is ready for a change in ownership.

Earlier this week, Bloomberg Businessweek reported that the company has retained Citigroup to explore selling out to a private equity buyer. According to published reports, Allscripts is considering a leveraged buyout, which would take it private but leave it holding a ton of debt. It sure must be eager to avoid scrutiny by curmudgeons on Wall Street!

At least one research type has already given such a move the thumbs up. According to Bloomberg Businessweek,  David Windley, an analyst with Jefferies & Co., the move makes sense despite the inherently high costs.  Allscripts “continues to climb a steep product integration hill that would be more comfortable out of the public eye,” the site quotes Windley as telling his clients.

Investors seem pleased with the  prospect of an Allscripts sale too. Shares of the company (MDRX) rose 14 percent when the news that Allscripts had tapped Citigroup hit the press last week.  Clearly, they don’t have complete confidence that the stock is headed for success as the company is constituted today.

There’s no doubt that Allscripts is on a challenging path in creating new, unified product offerings for a feverishly competitive market. The product integration effort Windley is referring to, and it’s a massive one, is the integration of Allscripts products with those of rival Eclipsys Corp., which it acquired in 2010.

Whether integration has been proceeding smoothly or not, it can’t have been a big confidence builder six months ago when Allscripts fired Chairman Phil Pead, who’d come on board when Eclipsys was purchased, and three board members resigned.

Plus, the rumors are swirling about Allscripts planning to sunset MyWay and move users to their Allscripts Professional product. More details on that change as it develops.

Large EMR Responsiveness (or lack thereof)

Posted on May 2, 2010 I Written By

John Lynn is the Founder of the blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of and John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

I got the following email from an EMR vendor that highlights a number of interesting things about what it’s like for customers interacting with their EMR vendor. It’s very much in line with the experiences I’ve seen and heard. I’ve removed the specific EMR vendor names since the names don’t matter as much as the general experience. Instead I’ve used “small EMR vendor” and “large EMR vendor” and “ePrescribing solution.”

I was looking for an ePrescribe solution to interface to our small EMR vendor about a year ago and settled on using ePrescribing solution. As you probably know, they bailed out of the business and sold their service to large EMR vendor. Now we’ve interfaced our product with theirs.

The thing that makes me chuckle is my clients beat me up all the time on saving “clicks” and yet they don’t say a negative thing about the steps associated with large EMR vendor. I guess its because they know I have control over my product and they realize there is zero from the large EMR vendor.

As an observation, questions and low-level technical support was very, very good from the old ePrescribing solution. It appears to be non-existent with large EMR vendor – maybe because they’re busy dealing with so many conversions from the purchased ePrescribing solution? Don’t know. I also know from first-hand experience that support is rather poor with large EMR vendor.