BHS Adopts Allscripts Solutions - Analyst Blog

Clinical software provider Allscripts-Misys Healthcare Solutions (MDRX) has announced the selection of its Electronic Health Record (“EHR”) and Practice Management (“PM”) solutions by Berkshire Health Systems (“BHS”) for the latter's 108 physicians and other medical providers. BHS believes Allscripts' solutions will help it improve patient care and communication.

BHS is a non-profit health system providing healthcare services in Berkshire County, Massachusetts, as well as eastern New York, northwest Connecticut and southwest Vermont. The entity offers its services via a network of affiliates that include Berkshire Medical Center, a community hospital operating 302 licensed beds.

Allscripts' solutions will replace BHS' existing PM and EHR solutions, which should enable a more efficient and effective delivery of patient care. Moreover, BHS will also deploy Allscripts' revenue cycle management (“RCM”) solutions along with PM, which will help physicians automate billing, scheduling, claims management and other key financial operations.

By adopting EHR, BHS expects its physicians to demonstrate a meaningful use of the solution in 2011, thereby enabling them to qualify for maximum government subsidies under the American Recovery and Reinvestment Act (“ARRA”). Physicians and hospitals that adopt EHR and use them in a meaningful way are eligible for incentives under ARRA. BHS expects Allscripts' solutions to help its physicians to qualify for federal incentives between $44,000 and $64,000 each.

The U.S. government has been increasingly emphasizing the use of EHR systems in recent times, as is evident from the Medicare Improvements for Patients and Providers Act of 2008. The Act provides financial incentives to physicians who adopt e-prescribing and requires adoption of this practice by 2011.

Libertyville-based Allscripts is a leading provider of clinical software and information solutions meant for physicians. The company faces strong competition from Cerner Corp. (CERN), Merge Healthcare Inc. (MRGE), Quality Systems Inc. (QSII) and Athenahealth Inc (ATHN).

Allscripts' Health Center Solution includes the EHR, PM and advanced reporting functionality. EHR is a software that automates the process of writing prescriptions. The EHR system enables physicians to send prescriptions directly to a pharmacy by e-mail. It has been proven that the effective use of EHR systems reduces medical errors, enhances clinical quality and leads to better patient outcomes by providing real-time access to patient records.

Allscripts is well placed to benefit from the growing adoption of EHR by medical practitioners, seeking to comply with the federal stimulus package. BHS represents a valuable addition to the company's customer base. We currently have a Neutral recommendation on the stock.

 
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