The largest publicly-traded EHR vendors netted more than $465 million in profits during the first half of 2018, a 15.7% decline from the first half of 2017.
Revenues, on the other hand, increased 7.5% with every company seeing a boost.
FierceHealthcare tracked financial data from the EHR vendors that publicly report quarterly earnings to the Securities and Exchange Commission (SEC) including Cerner, Allscripts, Athenahealth, Meditech, NextGen Healthcare and CPSI.
Notably missing from that list is Epic, which is a privately held company and one of the largest EHR vendors in the industry.
Overall, EHR vendors have been struggling to carve out financial stability a post-Meaningful Use environment where many providers are less incentivized to change vendors.
Unsurprisingly, another EHR giant, Cerner, led the way on profits with $329.4 million in the first six months despite a $108 million drop in revenue.
Cerner’s first-half financials were impacted by a delay in a 10-year, $10 billion contract with the Department of Veterans Affairs. That contract was finalized in May.
Allscripts has the toughest first half, reporting a net profit of $45.8 million, down from $151.6 million during the first half of 2017.
NextGen Healthcare’s parent company, Quality Systems Inc., reported a net loss of $8.4 million, down almost $16 million from the previous year.
Meanwhile, Athenahealth, which is in the midst of considering takeover offers following the departure of CEO Jonathan Bush, had a stellar first half, recording $67.5 million in profits, up from $8.5 million the previous year.
Athenahealth is a year into a strategic plan that reduced the company’s workforce by 9% and saw spending on sales and marketing drop $32 million in the first six months.
Eli Richman and Rose Meltzer contributed to this report.