Months after DOJ settlement, eClinicalWorks posts its best sales quarter of 2017

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eClinicalWorks added 3,750 new providers in Q3, its best quarter following a $155 million settlement. (monsitj/iStock/Getty Images Plus)

If third-quarter sales are any indication, it will take more than a fraud settlement to deter providers from switching to eClinicalWorks. 

More than four months after settling a major lawsuit with the Department of Justice, eClinicalWorks posted its best quarter of the year, according to figures reported by the company. 

The EHR vendor added 3,750 new providers during the third quarter of 2017, the first full quarter following a $155 million settlement to resolve allegations that it falsified EHR certification. The company reported $130 million in revenue. More than 80% of new customers switched from other vendors, according to the company.

In the second quarter, eClinicalWorks added just over 3,000 new providers and $120 million in revenue. The strong third quarter numbers make it the second-most widely used EHR in the country among ambulatory care providers, eClinicalWorks spokesperson Bhakti Shah told FierceHealthcare in an email.

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However, it’s still unclear what impact the $155 million settlement had on the company's bottom line. As part of its corporate integrity agreement, eClinicalWorks agreed to upgrade certain portions of its EHR software for existing customers or transfer customer data to another EHR vendor free of charge. Shah declined to provide figures for third-quarter profits or the number of providers that have switched from eClinicalWorks.

A July survey showed two-thirds of eClinicalWorks customers said the settlement had negatively impacted their perception of the EHR developer, but just 4% said they planned to replace their system due to the settlement.  

At least part of the reluctance to switch vendors may be attributed to the logistical challenges of doing so. Michael Roberts, chief information officer at Highlands Health System and Highlands Regional Medical Center, which uses eClinicalWorks for its physician practices, told FierceHealthcare he was frustrated by the settlement, but said his system had no plans to switch for two reasons: They had already invested a lot of money integrating the EHR system and physicians are generally “very happy” with the product.

“That’s a big hurdle,” he said.