Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) Q3 Earnings Highlights
Paul Black, CEO:
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Today, I’d like to cover my view of the industry, the quarter, and our long-standing relevance to healthcare. As this global industry continues to manage through the pandemic, we’re seeing innovations introduced to address newly exposed needs. You see this with a significant rise of telemedicine technology, options in growing patient usage, and expectations of these tools. To have the ability to reach patients anywhere as a game-changer for providers and advancing the methods in which humans receive the care that they need.
The rise of consumerism in healthcare and the importance of opening the digital front door for patients to engage their health has transformed how care is delivered, and it’s here to stay. Patients now demand access to care beyond the four walls of the practice or hospital on their schedule, at their convenience, and without a long wait. Health care providers that embrace the rise of the patient as the consumer and the importance of capturing and harnessing analytics available, which inform decision-making, will expand their brands and catchment over the next two to four years. Health care technology is central to the strategy, which is better positioned for success when clinicians, patients have access to a complete and community view of the integrated record.
Turning to the quarter. I’m pleased with our solid third-quarter financial results, which represent the continuation of our strong performance this year. The results reflect decisive actions we have taken since the beginning of the COVID-19 pandemic and the efforts of the Allscripts teams located around the globe.
During the quarter, we were awarded a contract extension from the National Institutes of Health Clinical Center, an important research hospital located on NIH campus in Bethesda, Maryland. The hospital and research institute have been a valued Allscripts’ clients since 1976. They represent the largest hospital devoted to research in the country. This renewal will extend NIH’s use of Sunrise for at least five additional years. It also expands the purchasing ceiling under the agreement, enabling the U.S. federal government to purchase additional solutions through this contract vehicle.
In California, Lompoc Valley Medical Center signed a 10-year agreement for Sunrise Community Care deployed on Microsoft Azure. In Iowa, Shenandoah Medical Center also signed a 10-year agreement for Sunrise Community Care. Shenandoah sought a superior and integrated EHR to address the needs of an important community hospital.
A new client, Wilson N. Jones Medical Center, also signed a 10-year agreement for Sunrise Community Care. A facility of 214 licensed bed, they care for families in four counties of North Texas and Southern Oklahoma. Allscripts International business also made progress this quarter.
Our team won its first new client in New Zealand, Waikato District Health Board, who selected our anesthesia solution. For Allscripts, this win represents a significant opportunity to grow our business in New Zealand. We’re also pleased to continue with our military contracts overseas who are prepping for new upgrades and add-on capabilities.
Since we last reported, we hosted our flagship client event, the Allscripts Client Experience, at the end of August in the United States. We hosted similar ACE events in the United Kingdom, Canada, Singapore, and Australia. Approximately 3,500 clients, partners, and associates attended the virtual events, which featured three days of education, networking, and fun, with more than 180 sessions completed, 50-plus marketplace booths visited, and $35,000 raised for our giveback partner, Reach Out and Read, ACE was a huge success.
We also had our global impact event during the quarter. Allscripts’ employees around the world participated in the global impact event, providing various types of services and financial support to numerous charities. I’m quite proud of the work that we do, not only during this annual event but also throughout the entire year, giving back to those in need. We call it winning in our communities.
An incredible amount of change in healthcare has occurred over the last 20 months. A new pressure around staffing shortages, wage inflation, supply chain costs have created a strategic refocus on this dimension of our solutions. Revenue cycle, once relegated as tactical, is now a strategic part of a healthcare organization’s success. Organizations are devoting their focus, not only to treating patients that with pressing needs, but also restoring their financial health. We are strengthening clients’ financial chassis by our Revenue Cycle Center of Excellence proactive monitoring services.
With our collaboration, we’re seeing clients achieve record cash levels, substantial reductions in denials, and significant improvements in accounts receivable balances. This has all been driven through transparency into actionable data that financial managers need to effectively run their organizations every day. Our clients’ improvements and performance are evidence of the impact of a truly integrated clinical and financial platform combined with proactive as-a-service analytics….”