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Allscripts Drops Lawsuit Over $303 Million Deal

Posted on March 27, 2013 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.

Allscripts has agreed to drop a lawsuit against the New York City Health & Hospitals Corp. over a $303 million contract, Bloomberg reports.  In a display of what may be wishful thinking, Allscripts said it “looks forward to having the opportunity to work with HHC on other matters in the future,” according to Bloomberg.

Allscripts had sued the Health & Hospitals Corp., which runs the city’s public hospitals, when it awarded an EMR contract to Epic Systems. The contract involved tying together 11 public hospitals, 70 clinics, thousands of doctors and more than one million patients.

Allscripts had argued that it was a more logical choice because among other things, it offered a less costly choice. Execs had estimated that over 15 years, when ancillary costs are included, it would cost $1.4 billion to implement Epic, while its own EMR rollout could be completed for less than half that number.

But Alan Aviles, HHC’s CEO, argued that his team had given plenty of consideration to Epic’s rivals, spending four years on its nine-vendor shortlist. Moreover, he didn’t buy Allscripts’ savings estimates, according to a New York Times piece. Aviles noted that Allscripts’ estimate had assumed that application support for its product would cost nothing for 15 years, while HHC estimated the cost at $357 million.

Well, I don’t know what good all of this legal fencing did Allscripts. The vendor is already under closer scrutiny than its peers, given its management troubles and continued rumors that it will be acquired. I’d argue that the last thing it needs is to dissipate executive energies on a lawsuit that makes it look unreasonable or even desperate. But at least its leaders had the sense to drop the suit and move on.

Now it can turn its energies to the MyWay suit filed against it by a group of Florida physicians. The suit claims that the MyWay EMR, which was taken off the market last year, was defective, and that the offer of a free upgrade to its professional suite imposed additional costs.

Allscripts (MDRX) Sued Over Discontinuing MyWay Support

Posted on January 10, 2013 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.

A group of Florida doctors have filed what they hope will roll up into a nice, fat class action suit against Allscripts over the vendor’s discontinuing support for its medical practice-oriented MyWay system. The suit was filed by Panama City-based Pain Clinic of Northwest FL, which says it spent about $40,000 to implement MyWay.

The suit claims that MyWay is so flawed that some Allscripts customers haven’t been able to meet Meaningful Use standards using the system. That being said, dropping support left about 5,000 small group physicians who bought MyWay in a jam, it argues. The plaintiffs say the system Allscripts is offering as a free upgrade, EHR Pro, is more aimed at the needs of large practices.

Making things worse, EHR Pro really isn’t free, the Pain Clinic’s lawyers say. “MyWay users – already unhappy with a defective product they paid enormous money to acquire, train and develop – must learn a new interface after spending so much time acclimating to the old system, and will continue to suffer the financial loss of the time and expense to re-train employees and migrate data, as well as the added cost to license and maintain a more complicated software program that exceeds the needs of most small physician practice groups,” the complaint says, according to a piece in the South Florida Business Journal.

In perhaps the most scandalous allegation, the clinic bringing the suit claims that Allscripts is asking for thousands of dollars in fees from users to release their data back to them if they don’t want to use EHR Pro. If this were true, it certainly wouldn’t do much for Allscripts’ reputation with potential medical group buyers; after all, nobody wants their clinical data held for ransom.

Whether or not the Florida pain clinic manages to pull together a large enough group to get certified as a class, if I were Allscripts I’d be careful with this one. It could end up as a PR debacle if nothing else.

Costco Begins Selling Allscripts EMRs To Doctors

Posted on December 30, 2011 I Written By

Katherine Rourke is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she's served as editor in chief of several healthcare B2B sites.

A little earlier this month American Medical News had an article about Costco selling EHR software. This doesn’t come as a big surprise since Walmart had been selling an EHR out of Sam’s Club for quite a while. Although, that program was discontinued shortly after the initial launch. Here’s a piece of the Allscripts MyWay EHR offering in Costco for those that missed it:

Costco has partnered with Etransmedia Technology to sell Allscripts MyWay EHR and practice management systems at Costco stores nationally. The store hopes physicians looking to collect incentive money for meaningful use of electronic medical records will take advantage of the deal.

Costco executive members can implement the integrated EMR/practice management system for $499 a month. For nonexecutive members, the price is $599 a month. The pricing is based on a 60-month contract, according to, a website Etransmedia launched to promote the deal.

The Allscripts MyWay system offered by Costco is an integrated, Web-based EMR and practice management solution that includes e-prescribing, electronic claims and a patient portal. The monthly fee includes maintenance, support and hosting as well as online training. Allscripts advertises the EMR and PM systems separately on its website for $375 and $225, respectively, per full-time physician, per month.

Costco is not offering a deep discount for the systems, but the company said it is “simplifying the buying process” by offering a product it “carefully” selected.

Despite this having been done before, I’m still seeing a lot of people on social media sites that are asking why Costco would offer an EHR. The answer to me is simple: marketing. I remember reading the story of a practice that had gone through a thorough EHR selection process that was de-railed thanks to a Sam’s Club ad about EHR software. Something’s wrong with that practice in my opinion, but the reality of EHR sales is that the sale often hinges on the littlest thing. Even if that little thing is a Costco ad.

Yes, Costco EHR just doesn’t make sense, but when you consider it as a relatively inexpensive way to market your product to doctors, maybe it’s not that strange. Although, I could think of other more targeted ways to market EHR software.

While you’re at Costco purchasing your EHR, be sure to pick up a pack of those Fat Boy ice cream sandwiches. I’m sure they’ll make a great addition to your EHR implementation. It’s amazing what food will do to enhance staff morale.

Allscripts Sunsetting PeakPractice EMR

Posted on October 28, 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.

It’s now official. Allscripts will be shutting down their PeakPractice EMR solution. In an FAQ for PeakPractice clients Allscripts gave more details. I’ve put a copy of the info below for reference. Honestly, this wasn’t much of a surprise for me. Allscripts had far too many EMR software in one company. It seems that Allscripts has chosen to go with: MyWay, Professional and MedFlow as their EMR packages going forward.

I do find it interesting that Allscripts plans to support PeakPractice through the first stage of meaningful use. I think the time frames were just too small to do otherwise. If there was a bit more time it would have made sense for Allscripts to use the stimulus money to motivate people to move off of PeakPractice and on to one of the other Allscripts EMR.

I’m honestly interested to hear how well the conversion goes between PeakPractice and other Allscripts EMR solutions. I think there’s going to be a lot of misinformation about what the can and can’t convert. Especially since it seems like what they’ll be able to convert will depend on which Allscripts EMR software you choose to convert to. Yeah, this has mess written all over it.

I’ll be watching for the next round of companies that take care of EMR conversions from PeakPractice. I remember the round when all the Misys users were ready to convert from Misys to something other than Allscripts. I expect we’ll see similar movement by PeakPractice EMR users. So much for going with a large company to ensure the stability of your EMR software.

Here’s the letter from Allscripts to PeakPractice Users:

Dear Valued PeakPractice Client,

When we brought together Allscripts and Eclipsys, we committed to you that we would share critical decisions as soon as they were complete.

After careful deliberation and review, we are making a change to our future plans for PeakPractice. In making this decision, our goal was to ensure that we could effectively meet your needs both now and in the future by providing you with systems that are stable, easy to support, and flexible enough to allow us to quickly respond to the rapidly changing market and regulatory requirements.

After careful analysis, we have decided to make the following changes.

We will continue development of the current version (5.5) of PeakPractice and ensure that it achieves ARRA Certification as a Complete EHR. We will be submitting this version for certification later in October. This will allow you, as a current PeakPractice client, to use the certified version to demonstrate Stage 1 Meaningful Use and claim your 2011 Stimulus incentives. With this version, you will be eligible for the first two years of incentives for Stimulus, totaling $30,000 under the Medicare program ($18,000 in year 1 and $12,000 in year 2).

We will continue development to ensure PeakPractice’s compliance with ANSI 5010, which will be released as PeakPractice version 5.6.

We will continue to provide support and hot fixes as needed for PeakPractice for the foreseeable future.
Relative to future versions, we will not develop net new features for PeakPractice once ARRA certification and ANSI 5010 compliance are achieved.

We will offer an upgrade path that includes both a FREE like-for-like, license-for-license swap and a FREE data conversion (see below) for current PeakPractice clients who want to upgrade to another Allscripts solution. We expect that many of our clients will choose to wait to upgrade until after you demonstrate Meaningful Use in 2011 with PeakPractice and receive your Stimulus incentives.

We have set up a PeakPractice Hotline at 877-611-1377 to both answer questions and arrange an assessment as to which Allscripts EHR/PM platform will be best for your organization.

We will work with you to determine the product and timeline that is designed to be most effective for you and have the least impact on your operations. We would encourage you to consider scheduling an upgrade to your EHR/PM solution at a time that is best for you, again, most likely after you have demonstrated Meaningful Use in 2011.

In terms of the upgrade we are making available, we will provide the following.

A FREE like-for-like, license-for-license swap between PeakPractice and a corresponding Allscripts EHR and/or PM solution (MyWay, Professional or MedFlow, depending upon your needs). We recognize there are many complexities surrounding the combinations of Practice Management and EHR products, but our program addresses each of these in detail.

We will convert data from your PeakPractice system to the selected Allscripts solution for FREE. Again, the scope of what will be converted varies depending on the systems from which and to which you are migrating.

Please note that while templates are not included in this conversion, we can recommend resources that can assist with template conversions, if you wish to pursue them. Likewise, other services (such as ASP fees, support, set-up, hosting, and EDI, such as through Payerpath) are available for the Allscripts products, but are not part of the free upgrade. We will be happy to discuss how to arrange for those services with you. This free upgrade is available through December 31, 2012. This should give everyone ample time to decide which route they wish to pursue.

We do not make this change lightly, as we recognize and appreciate the investment that you have made in this solution.
You will likely have many questions about this process, and we hope this link to our Frequently Asked Questions document addresses many of them. If you have further questions, please call the PeakPractice hotline (877-611-1377) or your Allscripts representative.

We intend to provide you with a pathway that allows you to achieve all stages of Meaningful Use and protects the investment you have made. We are committed to working with you as partners during and after this transition.