Physician offices are increasingly adopting electronic health records (EHR), creating demand for health care IT solutions as they become HITECH Act meaningful users of EHR and apply for federal stimulus money through Centers of Medicare & Medicaid Services, says Michael Cherny, Vice President of Healthcare Services & Technology at Deutsche Bank Securities Inc.
“What we have also started to see is customers in the larger end of the physician market making their purchasing decisions, either in terms of upgrading their systems, replacing one system with another, or for user groups that had nothing previously, going out and buying their first EHR,” Cherny said.
Cherny has a “buy” rating on Allscripts Healthcare Solutions (MDRX), a health care IT company expected to benefit from the growing physician office demand. He says MDRX has seen 20% bookings growth over the last two quarters, and it has integrated the Eclipsys legacy products from last year’s merger into a coherent strategy.
“We view Allscripts as in the best position to gain incremental market share because of their broad product suite, which allows them to sell into all different areas in the market,” Cherny said. “The company has already done a very strong job of cross-selling into the legacy customer bases, particularly selling Allscripts ambulatory products into the legacy Eclipsys hospital base. And we would expect the reverse to happen going forward as well.”
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