EHR vendor profits dip in the first half of 2018

athenahealth building
Athenahealth had a standout first half recording $67.5 million in earnings. (athenahealth)

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.

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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.  

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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.

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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.

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