Glenhill Advisors Makes Big Addition To Its Allscripts Healthcare Solutions Inc. (MDRX) Position

Let’s now discuss some factors that might have assisted the company in delivering its solid performance this year. The electronic health/medical record (EHR/EMR) solutions developed by Allscripts Healthcare Solutions surely played an important role in the company’s growth and development. The U.S healthcare IT industry is currently going through a rapid evolution, which was mainly triggered by new laws and regulations. The healthcare sector is quickly moving towards an environment where EHRs are becoming an industry standard. The Health Information Technology for Economic and Clinical Health Act of 2009 has also served and continues to serve as an important driver of healthcare IT adoption, which allows Allscripts Healthcare Solutions to grow and expand its client base at a very high pace. The company is well-positioned to make the most of these industry changes. Just recently, research company Black Book awarded top scores for Allscripts’ ambulatory EHRs, which will most likely assist the company in increasing the visibility of its solutions. Black Book’s Chief Executive Officer, Doug Brown, asserted that the ambulatory practices that use Allscripts’ solutions indicate a high level of satisfaction, which clearly suggests that the company has all the cards to take advantage of its strong position in the industry.

Allscripts Healthcare Solutions Inc. (NASDAQ:MDRX) recently posted its financial results for the second quarter, posting total revenue of $352 million, compared to $351 million reported a year ago. It’s worth mentioning that the higher revenue from subscription-based software sales and managed services was mainly offset by lower revenues from implementation and consulting services. In turn, this indicates that the company has been able to achieve a higher market penetration with its software solutions. At the same time, Allscripts’ net loss for the quarter narrowed quite significantly to $3.22 million, compared to a loss of $17.77 million reported in the same quarter a year ago.

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