In a positive development, Allscripts Healthcare Solutions (MDRX) recently received 2011-12 compliance and Complete Electronic Health Record (EHR) module certification for its Allscripts ED 7.0 from the Certification Commission for Health Information Technology (CCHIT) on March 2, 2011.
This Allscripts ED 7.0 is an Emergency Department Information System (EDIS) that provides improved patient throughput and ensures patient safety while exchanging the clinical information in the healthcare community. In September 2011, the previous version (6.3) of Allscripts ED had received the 2011-12 compliance certificate as an EHR Module by CCHIT.
Based on its recent recognition, Allscripts is expected to benefit from an under-penetrated, but rapidly growing segment of the healthcare information technology space. More than 1,300 Critical Access Hospitals serving rural America are now expected to participate under the American Recovery and Reinvestment Act (ARRA) by using EDIS.
Allscripts’ EHR is a software that automates the process of writing prescriptions. The EHR system enables physicians to send prescriptions directly to a pharmacy by e-mail. It has been proven 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. This is evident from the Medicare Improvements for Patients and Providers Act that provides financial incentives to physicians who adopt e-prescribing. The Act requires adoption of this practice by 2011 and delays any reduction in fees for treating Medicare patients.
We believe that the new certification will boost Allscripts’ top-line by expanding its client base.
However Allscripts faces strong competition from Cerner Corp. (CERN), Merge Healthcare (MRGE) and MedAssets (MDAS) in a field that is increasingly price sensitive. Moreover the company suffers from lingering global economic weakness.
Currently, we are ‘Neutral’ on Allscripts.
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