New Agreement For Allscripts

Allscripts-Misys Healthcare Solutions, Inc. (MDRX: 17.38 +0.48 +2.84%) announced that it has entered into a new agreement with NuHealth whereby the latter will implement Allscripts clinical and practice management IT solutions across its network of hospitals and employed physicians. The agreement is valued in excess of $5 million. 

Under the agreement, NuHealth will install the Allscripts Electronic Health Record (EHR) and Practice Management solution to automate and connect its clinical and administrative processes. This will enable NuHealth to enhance the quality of care, improve patient communications and better manage the cost of care delivery. 

We think that the new agreement will boost Allscripts’ top-line by expanding its client base. EHR system enables physicians to send prescriptions directly to a pharmacy by e-mail. It has been seen that the effective use of EHR systems reduces medical errors, enhances clinical quality and leads to better patient outcomes by accessing patient records in real time. 

The U.S. government is increasingly emphasizing the use of EHR systems these days, as evident from the Medicare Improvements for Patients and Providers Act of 2008. The Act, for the first time ever, provides financial incentives to physicians who adopt e-prescribing. This requires adoption by 2011 and delays any reduction in fees for treating medicare patients. 

Libertyville, IL-based Allscripts Healthcare Solutions Inc. is a leading provider of clinical software and information solutions meant for physicians. In Oct 2008, the company merged with Misys Plc − a global applications software and services company − to form the Allscripts−Misys Healthcare Solutions Inc. 

Allscripts faces strong competition from Cerner Corp. (CERN: 79.65 +0.93 +1.18%), Merge Healthcare Inc. (MRGE: 2.35 -0.05 -2.08%), Quality Systems Inc. (QSII: 56.95 +1.32 +2.37%) and MedAssets Inc. (MDAS: 20.97 +0.48 +2.34%). Presently, we have a “Neutral” rating on Allscripts.