Central Florida Gets Athenahealth - Analyst Blog

Leading medical billing and records software provider Athenahealth Inc. (ATHN) has been chosen as a preferred vendor for electronic health record (“EHR”) solutions by the Central Florida Health Information Technology Initiative (“CFHITI”).

CFHITI is the Regional Extension Center (“REC”) of the University of Central Florida (“UCF”). The entity was created through the collaboration between UCF and the Central Florida Regional Health Information Organization (“CFRHIO”).

UCF was awarded federal stimulus funding of $7.6 million to help physicians in central Florida migrate to the EHR platform. CFHITI is responsible for the adoption and implementation of EHR systems by all health care providers across seven central Florida counties.

The collaboration (between Athenahealth and CFHITI) will allow more than 1,400 physician practices across central Florida to leverage Athenahealth's web-based “athenaClinicals” EHR solution and enable them to secure incentives offered by the HITECH Act, which was enacted as part of the American Recovery and Reinvestment Act (ARRA).

Physicians and hospitals that adopt EHR and use them meaningfully are eligible for incentives under the ARRA, a federal stimulus package aimed at increasing the use of EHR by medical practitioners. 

Following the release of the Government's final rules for “Meaningful Use” of EHR in July 2010, Athenahealth extended the timeline for physicians to participate in its “Federal Stimulus Bonus Payment Guarantee Program.” As a result, physicians now have until June 30, 2011 (instead of January 31, 2011) to join the guaranty program and implement the company's EHR solution to qualify for the incentive under the HITECH Act.

Massachusetts-based Athenahealth is a leading provider of Internet-based business services for physician practices. The company's services leverage proprietary web-native practice management and EHR software, integrated back-office service operations and automated patient communication services. Athenahealth delivers solutions over its centrally hosted physician network “athenaNet.”

Athenahealth has done a remarkable job differentiating athenaCollector, its principal service, and building it into one of the leading brands in the Health IT market. Higher adoption of athenaCollector and athenaClinicals by physicians and medical providers has fueled a revenue growth of 33% in third-quarter fiscal 2010.

However, Athenahealth continues to face stiff competition across all of its operating platforms with established Health IT players such as Allscripts-Misys (MDRX) and Quality Systems (QSII) posing a major threat to the company. Nevertheless, Athenahealth remains optimistic about the growth prospects in each of its end-markets boosted by expanded adoption of its premium solutions.

 
ATHENAHEALTH IN (ATHN): Free Stock Analysis Report
 
ALLSCRIPTS-MISY (MDRX): Free Stock Analysis Report
 
QUALITY SYS (QSII): Free Stock Analysis Report
 
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