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Farzhad Uses Twitter to Call Out EHR Vendors

Posted on September 12, 2012 I Written By

John Lynn is the Founder of the HealthcareScene.com 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 InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

When it comes to ONC, I think a few things have always been clear:
1. ONC has its heart in the right place.
2. ONC hates the government restrictions that have to work within as much as the rest of us.

If you’ve ever had a chance to meet with someone from ONC in person, then you know the first item to be true. They really do have a sincere desire to improve healthcare in America through the implementation of IT. Not only do you see that in person, but their actions compliment this as well. In fact, I’d say that they’re some of the most sincere parts of Washington DC that I’ve ever met.

The challenge comes with the second point. ONC has to work within the legislation and government regulations that they’re given. I once posted about Blumenthal’s HIMSS adress as being meaningless. Someone at ONC found it and asked what they could do to make his address more meaningful. I told them nothing, because he was subject to the government muzzle. I think they’re reply was something like, “Many of us here don’t like the government muzzle either.” Another simple example of how they are very sincere people at ONC. I wonder if Blumenthal could offer a non-muzzled speech now.

I say all of this as background for a tweet that Farzad Mostashari sent out to EHR vendors. The thing I love most about this tweet is that Farzad is using the farthest extent of his power possible to push forward health IT within the government framework. This is no easy task, but I think Farzad’s tweet is brilliant:

I think the ONC pledge is still being considered by many EHR vendors. I know how EHR companies make decisions and so this won’t be any different. However, Farzad already posted this tweet with EHR companies that have made the pledge:

I’ve also seen tweets from NextGen and Azzly. We’ll see if others pop up on the #ONCPledge hashtag.

Oh the power of a tweet! Can you imagine how simple, but powerful Farzad’s request could be? No complicated legislation. No expensive stimulus. No mind numbing regulation. Just good old fashioned public pledge to do what’s right. I wonder how else this could be used.

EHR Related Stocks Up 82% Since EHR Stimulus Package

Posted on November 22, 2011 I Written By

John Lynn is the Founder of the HealthcareScene.com 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 InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

If you’re like me and work in the healthcare IT industry, you know that we’re in a really amazing environment right now. Turns out, healthcare IT related companies are enjoying the EHR stimulus money from the HITECH act as much or more than anyone else.

In an analysis by USA Today, they found that since 2009, the healthcare IT related companies stock value increased by an average of 82%. 11 of the 45 companies they analyzed they increased by a combined total of at least $20 billion since the HITECH act was passed.

They also break down how much each healthcare IT and EHR related stock increased since the HITECH act took effect:

  • 194% for Cerner;
  • 134% for Allscripts Healthcare Solutions;
  • 105% for Computer Programs and Systems;
  • 105% for McKesson;
  • 96% for Siemens;
  • 89% for UnitedHealth Group;
  • 83% for Accenture;
  • 55% for athenahealth;
  • 51% for Dell;
  • 34% for General Electric.
  • During that time, the stock value for Quality Systems dropped by 3%

Some pretty amazing numbers. Plus, it’s interesting to think that the stimulus money is just getting started. Greenway EHR users have gotten $5 million and Cerner EHR users have gotten well over $2.2 million in EHR incentive money.

I’m not stock analyst, but I’m sure these stocks will continue to grow in this frothy healthcare IT environment.

Greenway Medical Users Get $5 Million in EHR Incentive Money

Posted on November 21, 2011 I Written By

John Lynn is the Founder of the HealthcareScene.com 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 InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

https://twitter.com/#!/HITAdvisor/status/137968890784399361

Back at the end of August I posted the Cerner EHR incentive money total at $2.2 Million. No doubt that’s a lot higher now. However, it’s interesting to compare the totals of Cerner’s EHR incentive money and Greenway’s EHR incentive money.

If you know of other EHR incentive money numbers that are published, please let me know.

Greenway Medical EHR to Go Public

Posted on July 18, 2011 I Written By

John Lynn is the Founder of the HealthcareScene.com 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 InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Today I saw the news that Greenway Medical has filed to go public. The initial public offering was filed at $100 million. You can see the full Greenway Medical prospectus on the SEC website.

I really hate that they use their KLAS rankings in their prospectus. A ranking that an EHR vendor has to pay to obtain shouldn’t be part of what an investor uses to make their investment decision. Of course, if you are an investor who uses KLAS ranking to buy the stock or not, then that’s a different issue.

I also found the EHR market size numbers from the prospectus to be quite interesting:

We estimate the current market for our solutions and services to be approximately $33 billion. We believe our potential customer base includes approximately 550,000 physicians at over 230,000 practices, as well as approximately 3,500 retail and employer based clinics that contain an additional 8,000 providers. Our core EHR/PM solution, PrimeSUITE, serves an estimated $9 billion market. While 41% of the EHR/PM market is penetrated, only 10% of providers fully utilize their installed EHR solution. The markets for certain of our other solutions include $14 billion for our RCM services, $3.5 billion for our data exchange solution, and $2 billion for our speech understanding solution.

I’d like to know where they got these numbers. 41% market penetration is much higher than reality from my experience. However, they may be using a really broad brush to include things like ePrescribing or other partial EMR related software.

The $2 billion voice recognition (or speech understanding if you prefer) market is interesting as well. I wonder what Nuance would have to say about that. Plus, I didn’t even realize that Greenway had a speech understanding solution. I wonder if their product can even compete in that area.

The following is the Greenway Medical financial numbers that were included in the prospectus:

Greenway’s financial performance in recent years includes a $926,000 loss on $38.8 million in revenue in fiscal 2008, net income of $955,000 on $48.7 million in revenue in 2009 and nearly $2.9 million in net income on $64.6 million in revenue in 2010.

Looking at their financials they’re showing a loss for 2011 which seems odd after the previous trends. Plus, we’re in this healthcare IT and EHR bubble and so it doesn’t make sense that they’d have such growth the past couple years and be showing such a loss this year. Unless, they’re doing something with the numbers to delay costs until 2011. Plus, their tax number in 2011 seems off. I’m no expert on these filings, but $30,944,000 in taxes after paying $36,000 the year before seems wrong.

What’s more interesting is that Greenway Medical did $64.6 million in revenue in 2010. Not a bad growth rate from the $38.8 million in revenue in 2008. Plus, we still have a huge part of the EHR market left to adopt an EHR.

Of course, the real question is whether Greenway will be able to really differentiate itself from the other 300+ EHR vendors in the market place. Although, it does seem like the right time for technology companies to do an IPO. Couldn’t be more true than EHR company.