Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) recently announced the expansion of an agreement with PIH Health through 2025. This is likely to improve comprehensive care for Allscripts’ patient communities.
Following the release, shares of the Zacks Rank #4 (Sell) company rose 1.9% to $9.65 at close.
For investors’ notice, California-based PIH Health is a fully integrated, nonprofit, regional healthcare delivery network comprised of three hospitals, a host of outpatient medical offices, and a multi-specialty medical group, including home health and hospice care.
How Will Allscripts Gain?
Since 2004, PIH Health has been using Allscripts’ solutions, which include the flagship Sunrise EHR platform, the Allscripts TouchWorks EHR platform and the Allscripts CareInMotion population health suite. This extension signifies the expansion in the use and demand for Allscripts’ EHR platforms.
Notably, Allscripts’ solutions will also be extended to its newly-acquired PIH Good Samaritan Hospital.
Other Developments in EHR Platform
Allscripts has seen some developments in its EHR platform of late.
In January, the company announced the extension of its engagement with Northwell Health, New York State’s largest health system. Per terms of the agreement, the use of Allscripts’ EHR platforms — Sunrise and TouchWorks — will be implemented by Northwell’s physicians.
That’s not all. In 2019, the companies announced plans to jointly develop a next-generation EHR platform.
Last December, Allscripts’ client, Wyckoff Heights Medical Center, went live with its use of Sunrise platform, which included Sunrise Acute Care, Sunrise Revenue Cycle, Sunrise Radiology, Sunrise HIM and Sunrise Pharmacy.
Earlier, the company’s Sunrise Community Care suite was selected by San Gorgonio Memorial Hospital. (Read More: San Gorgonio Hospital Picks Allscripts Sunrise Community Care)
Strong Preliminary Q4 Results
Reflective of a plethora of developments in its EHR platform, Allscripts announced strong fourth-quarter 2019 preliminary results.
Notably, the company expects bookings within $1,090-$1,110 million, suggesting an increase from the prior outlook of $1,050-$1,100 million.
Reported and adjusted revenues for the quarter are expected between $450 million and $455 million.
Price Performance
We believe that positive developments such as these will provide some cushion to Allscripts which has declined 17.3% against the industry’s 21.9% rally in a year’s time.
Key Picks
Some better-ranked stocks in the broader medical space are Cerner Corporation (NASDAQ:CERN) , DexCom (NASDAQ:DXCM) and HealthEquity (NASDAQ:HQY) . While HealthEquity sports a Zacks Rank #1 (Strong Buy), Cerner and DexCom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cerner’s long-term earnings growth rate is estimated at 13.6%.
DexCom’s fourth-quarter earnings growth rate is projected at 31.5%.
HealthEquity’s long-term earnings growth rate is pegged at 25%.
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