(MDRX) - Allscripts Healthcare Solutions, Inc - acceptance of technology to improve healthcare is increasing

Allscripts is benefiting from the secular growth of information technology in the healthcare industry. Our analyst Gregory Aurand, CFA believes the growth outlook is favorable, despite financial barriers, as acceptance of technology to improve healthcare is increasing and the Allscripts market is only about one-quarter penetrated. Full Analysis Allscripts Healthcare Solutions, Inc. (MDRX) is a leading provider of clinical software and information solutions for physicians. The company has three business segments: Prepackaged Medications, Software & Related Services (SRS), and Information Services. The positive thesis for Allscripts Healthcare is based on the success of its fast-growing SRS business segment. Sales in its SRS segment grew 42.7% in 2003, 55.9% in 2004 and 48% in 2005. Driving this growth is the company's TouchWorks division, which is being helped by government support and legislation encouraging the adoption of electronic health records by physicians. According to Zacks Equity Research Analyst Gregory Aurand, CFA, the political environment continues to improve. The federally-sponsored Certification Commission for Healthcare Information Technology (CCHIT) has approved both TouchWorks and A4's HealthMatics electronic health records. The two products become two of twenty certified EHR products by the commission in 2006. The commission certification provides a consistent benchmark for EHR products and become a strong marketing tool. Overall, Aurand believes the growth outlook is favorable, despite financial barriers, as acceptance of technology to improve healthcare is increasing and the Allscripts market is only about one-quarter penetrated. The company believes the large physician practice groups (25 or more physicians) are about 30% penetrated, while medium size groups (10-25) are about 15% penetrated, and small groups (less than 10) are only 3-5% penetrated. The company signed a 10-year partnership, renegotiated early in 2006, in 2001 with IDX Systems, a dominant market player, to integrate Touchworks with IDX s practice management systems. IDX granted Allscripts the exclusive right to market, sell, license, and distribute ambulatory point-of-care and clinical application products to IDX customers and their affiliates. The renegotiation, prompted by GE acquiring IDX, frees GE/IDX to offer its own practice management and EHR offerings without restriction. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home