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The Zacks Analyst Blog Highlights: Allscripts Healthcare Solutions, EasyLink Services International, Cerner, Quality Systems and Athenahealth

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July 01, 2011 | Comment(s): 0
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MDRX | ESIC | CERN | QSII | ATHN

For Immediate Release

Chicago, IL – July 1, 2011 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Allscripts Healthcare Solutions (MDRX - Analyst Report), EasyLink Services International Corporation (ESIC - Snapshot Report), Cerner Corp. (CERN - Analyst Report), Quality Systems (QSII - Analyst Report) and Athenahealth (ATHN - Analyst Report).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Allscripts Inks Reselling Pact

Electronic health record (“EHR”) services provider Allscripts Healthcare Solutions (MDRX - Analyst Report) has forged a reselling deal with Georgia-based cloud-based messaging services and e-commerce solutions provider EasyLink Services International Corporation (ESIC - Snapshot Report).

Under the deal, Allscripts will resell EasyLink's hosted inbound fax services as an effective, secure and reliable alternative to fax machines and fax servers. Allscripts’ customers can now receive secure inbound faxes through the company’s automated homecare software application with EasyLink's cloud-based fax solution.

Allscripts is among the leading players in the health care information technology (“HCIT”) market. The company offers an integrated platform of services to facilitate enhanced exchange of critical patient information.

Allscripts recently introduced a cloud-based outsourced business office solution, dubbed Allscripts RCM Services, for physician practices at the Healthcare Financial Management Association (“HFMA”) national conference in Orlando, Florida. The service, which requires no new hardware or up-front costs, manages medical billing, coding, claims, patient payment, clearinghouse suite and collections.

The HCIT market is competitive and price sensitive. Among others, Allscripts faces strong competition from Cerner Corp. (CERN - Analyst Report), Quality Systems (QSII - Analyst Report) and Athenahealth (ATHN - Analyst Report) in this market.

However, optimism about the growth prospects of select HCIT service providers is high under the Obama Administration, which passed the Stimulus package in May 2009, aimed at increasing the use of EHR systems by medical practitioners.

Allscripts has widened its user base and increased cross-selling opportunities following its merger with Misys and Eclipsys.  We believe that the company is well positioned in the fast-growing business of selling EHR to physician practices and other ambulatory care settings.

The acquisition of Eclipsys provided the company with an acute care product for sale in concert with its ambulatory services. We are of the opinion that acute and ambulatory care will continue to converge in future and that Allscripts is well positioned to provide integrated clinical applications that will permit health care providers to satisfy HITECH Act requirements and eventually comply with an outcome-based reimbursement system. 

On the other hand, we are concerned about the intensity of competition, price elasticity, volatility in bookings and the extent of the company’s ability to absorb large acquisitions. Currently, we are neutral on Allscripts.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Read the full analyst report on MDRX

Read the full analyst report on ESIC

Read the full analyst report on CERN

Read the full analyst report on QSII

Read the full analyst report on ATHN

 

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