Continuing last year's rebound, Meditech posted its best year since 2014.
The Massachusetts-based electronic health record (EHR) vendor reported $488 million in revenue in 2018, a 1.5% increase from the previous year’s $480 million, according to year-end financials reported to the Securities and Exchange Commission (SEC).
The company had suffered a three-year backslide in which it saw revenue drop more than $117 million. The company has seen a gradual drop in sales since 2013, when it posted nearly $580 million in revenue. In 2014, Meditech posted $517 million in revenue and that dropped to $475 million in 2015, followed by year-end revenue of $462 million in 2016.
The company rebounded last year and reported $481 million in revenue, a 4% increase from the previous year.
The company credits last year’s performance to higher bookings which generated $10.7 million in revenue, offset by $3.4 million less from services.
Meditech also benefited from tax reform legislation passed in December 2017. The company’s tax rate dropped from 19.8% in 2017 to 6.6% in 2018, adding $12.2 million to its net income. That tax rate decrease follows a previous drop in the tax rate from 28.5% in 2016 to 19.8% in 2017.
As the EHR market becomes increasingly consolidated, the EHR software vendor will be challenged to hold its ground. At the same time, Athenahealth, acquired by private equity firms Veritas Capital and Elliott Management last fall, jumped into the hospital EHR market just four years ago with the acquisition of RazorInsights.
Last year, Meditech was ranked as the top performing EHR solution for community health information services in healthcare research firm KLAS’s annual software and services report. This year, however, KLAS ranked Athenahealth’s athenaOne for Hospitals and Health Systems solution as the top EHR solution for community health information services. Meditech ranked second in the 2019 report.
Meditech’s Expanse solution, a web-based EHR, ranked Best in KLAS for acute care EMR (Canada), according to the 2019 report, which was released this week. Meditech is the EHR market leader in Canada, with 47% market share, according to the company.
Meditech has been increasing its investments in population health and analytics, including a collaboration with Arcadia Healthcare Solutions to strengthen its population health offerings.
The company also announced this week a collaboration with Nuance to integrate its AI-enabled voice assistant into its Expanse EHR platform.