Following a three-year slump in which it saw revenue drop more than $117 million, Meditech posted its best year since 2014.
The Massachusetts-based EHR vendor reported $481 million in revenue in 2017, a 4% increase from the previous year’s $462 million, according to year-end financials reported to the Securities and Exchange Commission (SEC). The company has seen a gradual drop in sales since 2013 when it posted nearly $580 million in revenue.
The company credits last year’s success to higher bookings which generated $27 million in revenue. That was offset by $8.4 million less from services.
Meditech also got a boost from tax reform legislation passed in December. The company’s tax rate dropped from 28.5% in 2016 to 19.8% in 2017, adding $4.5 million to its net income.
Moving forward, the EHR software developer will have to hold its ground in an industry that is seeing greater consolidation. Over the last four months, Allscripts scooped up two EHR vendor—McKesson and Practice Fusion— both of which were facing inquiries from the Department of Justice regarding compliance with federal EHR certification standards. The industry is still reeling from the $155 million settlement paid by eClinicalWorks to resolve allegations hat it falsified certification.
But Meditech has been making new investments in population health and analytics tools, and boasts that 83% of its customers have been with the company for more than a decade. This week, healthcare research firm KLAS ranked the vendor as the top performing EHR solution for community health information services.