Back to top

Analyst Blog

Allscripts Healthcare Solutions, Inc. (MDRX - Analyst Report) has extended its relationship with North Shore-LIJ Health System, a large healthcare system serving the New York metropolitan area. The five-year outsourcing contract to manage North Shore-LIJ’s IT services is expected to generate $400 million of revenues for Allscripts.

Allscripts has implemented the Sunrise Clinical Manager, Enterprise Electronic Health Record (EHR) and Care Management in North Shore-LIJ’s network. In addition, the leading player in the health care information technology (HCIT) market has joined forces with North Shore-LIJ to set up an Innovation Lab to develop advanced technology solutions and tools to cater to the region’s healthcare market.

Our Take

Allscripts’ recurring revenues reflect its ability to retain its existing client base. Recently, the company won several new clients such as Liberty Hospital, Salford Royal NHS Foundation Trust and UK-based ProMedica, among others.

However, Allscripts lost significant market share in 2012 due to a number of factors, such as, failed strategic initiatives, overhauling of top management and a significant fall in bookings. As Allscripts is no longer a take-over candidate, as per the reversal of their strategic plan, growth of the company under a new management remains uncertain. Further, a potentially challenging selling environment, higher R&D investment, legal expenses along with client support and infrastructure investments raise concerns for Allscripts.

The stock carries a Zacks Rank #4 (Sell) based on declining estimates. We remain disappointed with management’s outlook for 2013. The HCIT market is competitive and price sensitive. Among others, Allscripts faces strong competition from Cerner Corporation (CERN - Analyst Report), Quality Systems Inc. (QSII - Analyst Report) and Athenahealth, Inc. (ATHN - Analyst Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%
NUSTAR GP H… NSH 41.14 +2.59%