Stifel Nicolaus & Co. Analyst Steve Rubis says one significant problem for Allscripts Health Solutions Inc (MDRX) is that its dbMotion business represents an “Achilles’ heel” for the company.
“The issue is unifying Allscripts core systems on dbMotion will not result in the economies of scale or efficiency in R&D as long as you’re running two ambulatory EHRs, an acute EHR — Sunrise Ambulatory and Sunrise Acute EHR,” Rubis says. “There are too many systems, and you need to consolidate/unify those on one platform on the back end in order to drive the network effects.”
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Rubis says Allscripts has done a good job of stabilizing its customer base. He says at the current level of spend, the customer base provides a good baseline for Allscripts.
“The problem is they are never going to be as efficient as athenahealth technologically and developmentally because of the fact that they service too many platforms and fail to unify these systems via a single-instance, multitenant architecture,” Rubis says. “Allscripts platforms are unified through dbMotion, which we think represents a significant Achilles’ heel.”
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