Health IT company Allscripts reported strong bookings growth in the third quarter of 2019, up 19% year over year, with revenue for the quarter hitting $444 million.
Allscripts reported a loss of $5.7 million in the third quarter of 2019, up from a loss of $36 million in the third quarter of 2018, as part of its 2019 third-quarter results released at the close of business Monday. The company reported adjusted earnings per share were $0.17, up 6% compared to $0.16 in the third quarter of 2018, which beat Wall Street estimates.
The company's third-quarter 2019 revenue fell short of Street revenue expectations by 1%. Allscripts shares were up 3% in premarket trading Tuesday.
Allscripts' strong bookings performance continued in the second quarter in both its provider and Veradigm businesses, Allscripts CEO Paul Black said.
“Our third-quarter results show continued strength in new bookings, reflecting how our award-winning solutions resonate with both longtime clients as well as those new to Allscripts,” Black said in a statement.
During the quarter, the company inked a deal with New York City-based health system Northwell Health to extend its Allscripts Sunrise platform through 2027. Allscripts also announced a partnership with Northwell to develop a cloud-hosted, voice-enabled, artificial intelligence-based electronic health record (EHR).
“We were proud to extend our Sunrise partnership with our largest client, Northwell Health, and we’re excited to jointly develop the next-generation electronic health record with Northwell. Looking ahead, we believe revenue growth will improve as we benefit from the strategic investments we’ve made and the platforms we’ve created across both our Provider and Veradigm businesses," Black said.
In January, Allscripts’ Veradigm business announced a partnership with NextGen Healthcare to enable data exchange between providers and health plans, insurance companies, laboratories and research organizations. The agreement created one of the largest EHR data networks in the world, with approximately 150 million unique patient records to provide "advanced analytic solutions and insights focused on improving care quality and patient outcomes," Black said.
Building on the Veradigm business, Allscripts is now collaborating with Komodo Health in the area of life sciences research. Allscripts is linking its ambulatory EHR with Komodo’s Healthcare Map, which contains encounter data from more than 150 private and public payers. Using Komodo Health's platform, the collaboration will enable Veradigm to provide the largest linked data set containing a complete longitudinal view of nearly 50 million identified patients, Black said during the earnings call.
"The market is clearly demanding linked EHR and claims data for research and this partnership will enable our clients to perform both clinical and economic analyses as well as fill in EHR data gaps. We believe this differentiates Veradigm even further from our competitors and we are seeing significant interest from our clients in this," he said.
In August, Allscripts reached a tentative deal with the Department of Justice (DOJ) to pay $145 million to settle an investigation into Practice Fusion's compliance with the Anti-Kickback Statute and HIPAA. Black said during the earnings call he expects that settlement to be finalized by the end of the year.
Allscripts acquired Practice Fusion for $100 million in January 2018, a year after the company received an inquiry from the U.S. Attorney’s Office for the District of Vermont examining the company’s compliance with the EHR certification program as part of a criminal investigative demand. The company has since rebranded that business as Veradigm with a focus on the payer and life sciences markets.
Allscripts President Rick Poulton said during the second-quarter earnings call in August that the $145 million settlement, while "not insignificant," is in line with other settlements between the DOJ and EHR vendors to resolve claims related to falsified certification.
The company expects to receive recoveries from third parties to help offset a portion of the $145 million the company has agreed to pay the government. Black said he expected those recovery payments to play out for several years.
The company raised its full-year 2019 earnings outlook to between $0.67 and $0.70, an increase at the midpoint from the prior outlook of between $0.65 and $0.70, the company said.
Allscripts expects full-year 2019 bookings between $1.05 million and $1.1 million and fourth-quarter revenue between $460 million and $470 million.