• EHR provider Allscripts withdrew its 2020 forecast and did not meet Wall Street’s first-quarter profit and revenue expectations, despite jobs at the high end of the Allscripts directive giving the company optimism in its 31 December financial results.
Reservations amounted to $ 205 million, down 28% from the highest quarter ever of Q1 2019, but in light of the coronavirus pandemic that forced Allscripts provider customers to put all their resources into the COVID -19 response, which was still “ decent across the program, ”Paul Black, CEO of Allscripts, told investors Thursday afternoon.
• Allscripts took advantage of the growing demand for teletherapy as a shelter for patients and earlier this year published the EHR-agnostic virtual care through its FollowMyHealth platform for patient loyalty, which rose in April just before the no-pandemic demand for more than 70,000 visits in total over almost 6,000 Provider customers. The Chicago-based IT company believes the offer will remain profitable in the long run and generate recurring revenue over time, CFO Rick Poulton said.
The pandemic created a new obstacle for Allscripts, which launched a margin improvement plan in March to recover from a loss of more than $ 182 million in 2019. The 34-year-old vendor sells EHR, financial, and population health management platforms to vendors and facilities all of which are struggling financially under the pandemic and withholding funds from their IT infrastructures.
“There is no playbook for what we are all experiencing on a global scale,” Black said.
Allscripts posted a $ 20.4 million loss on revenue of $ 417 million for the quarter, down 3% year-over-year. Pandemic pressure revenue was estimated at about $ 7-10 million, Allscripts leadership said, otherwise revenue would have finished in the mid-range of previous projections.
The decline in sales was primarily due to a loss in one-off revenue, which fell nearly 10% as new sales fell to “much lower” than normal levels, Poulton said. However, the seller strengthens in the short term with a backlog of $ 4.5 billion – the second consecutive quarter of growth – helping to create a padded baseline for the quarter and beyond.
“We have a very strong business model,” Poulton said. “But of course we’re not immune.”
The provider was enthusiastic about the first results of its tele-pharmaceutical offering and distinguished it from more established platforms such as Teladoc or AmWell, which are privately owned, as it brought patients into contact with the doctor in their hospital or practice, not with new clothes.
“You just have to call and get someone to hang out on the couch that day,” Black said when announcing the model. While revenue is not based on volume – it is based on a monthly revenue model per vendor – demand for the service grew during the outbreak, and Allscripts expects demand to continue to grow as the year progresses.
The non-GAAP quarterly margin of 41.1% continued to decline for the provider, following margins of 43.2% in the third quarter of 2019 and 43.5% in the fourth quarter. Allscripts has hired financial advisory firm Alix Partners to develop a margin improvement plan over the past seven weeks. From the last week of March to April, the company made operational changes that it expects to be worth about $ 75 million annually.
In January, Allscripts reached a $ 145 million settlement with the Department of Justice to forge claims from a subsidiary, Practice Fusion, forge EHR certification, and violate backlash laws. Allscripts originally planned to pay the amount in installments by 2020 and recover about half from countless trust and insurance policies.
While the seller paid $ 57.3 million of the total in the first quarter, Allscripts called on the federal government to postpone partial deferral in light of the resulting pandemic and economic pressures. Executives expect the settlement to be delayed by about $ 25 million in 2021.
Allscripts stock rose nearly 7% in aftermarket trading on Thursday.