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09/04/2019

Allscripts Outperforms Competitors in New Global EHR Report From Black Book™ Research

Black Book’s Annual State of Global EHR Research names Allscripts top health system EHR vendor in meeting client implementation expectations globally

CHICAGO–(BUSINESS WIRE)–Sep. 4, 2019–
Allscripts (NASDAQ: MDRX) has been ranked number one of 68 named EHR vendors in a Black Book Research user satisfaction survey globally.

The report surveyed 4,056 current EHR users around the globe, providing insight into specific EHR progress and outcomes on vendor experience and client satisfaction. According to 1,490 combined respondents, Allscripts received particularly high marks in the UK, and for the first time was named the top health system EHR vendor in Canada, Australia and New Zealand. Prior to this report, Black Book named the Allscripts Sunrise platform as the top overall inpatient EHR for large hospitals across the United States in 2019. It also has named Allscripts ambulatory EHRs number one among independent physician practices with 26 or more practitioners since 2014.

“Allscripts is one of the leading EHR vendors to make the greatest impact and fastest inroads by confronting the challenges of localizing solutions, acquiring qualified regional support vendors, deposing established incumbents, aligning products to match government requirements and projects and putting in place in-country implementation, project management and local support teams, which all requires significant time and investment,” said Doug Brown, President and CEO of Black Book Research.

The report, conducted Q1 through Q3 2019, includes specific data on several key regions and countries, including Canada, Australia, New Zealand, Mexico, Brazil, Scandinavia, Germany, and Italy; as well as emerging and rapidly expanding EHR markets in South America, China, Singapore, Taiwan, India, Middle East, Central Europe, and African nations. The top-ranked EHR HIT vendors were measured by 18 key performance indicators and rated by outcomes in meeting buyer expectations, meeting forecast budget costs, and meeting or exceeding time and resource allocation goals.

The report’s findings adds to the growing positive momentum Allscripts has harnessed in markets outside the United States, which includes its first-ever deal in the Philippines and Gloucestershire Hospitals NHS Foundation Trust’s selection of Allscripts Sunrise™.

“Allscripts’ clients around the globe are achieving improved outcomes, seeing first-hand the power of our open, integrated solutions,” said Alan Fowles, President Allscripts International. “This report illustrates Allscripts clients’ dedication to their caregivers’ successful patient care through the efficient adoption of our solutions, as well as our commitment to providing world-class platforms that transform the healthcare IT industry.”

“Black Book’s extensive, comprehensive and unparalleled objective methodology makes this recognition a credible indicator of Allscripts expanding global footprint,” Allscripts Chief Executive Officer Paul M. Black said. “We’re proud of the broad base of feedback received from multiple disciplines throughout our global client base demonstrating how we are supporting healthcare organizations around the world to provide high quality and more efficient healthcare.”

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeandIt Takes A Community: The Allscripts Blog.

About Black Book™

Black Book Research, a division of Black Book Market Research LLC, provides healthcare IT users, media, investors, analysts, quality minded vendors, and prospective software system buyers, pharmaceutical manufacturers, and other interested sectors of the clinical technology industry with comprehensive comparison data of the industry’s top respected and competitively performing technology vendors. The largest user opinion poll of its kind in healthcare IT, Black Book™ collects over 540,000 viewpoints on information technology and outsourced services vendor performance annually. Black Book was founded in 2002, is internationally recognized for over 15 years of customer satisfaction polling, particularly in technology, services, outsourcing and offshoring industries.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

09/03/2019

Allscripts to present at the 2019 Wells Fargo Healthcare Conference

CHICAGO–(BUSINESS WIRE)–Sep. 3, 2019–
Allscripts (NASDAQ: MDRX) today announced that certain members of its management team will present at the 2019 Wells Fargo Healthcare Conference in Boston, MA on Thursday, September 5 at 9:45 am ET.

The live webcast and replay can be accessed at http://investor.allscripts.com under the “Events and Presentations” section of the website.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

08/27/2019

MaineGeneral Health Expands Allscripts Sunrise™ and FollowMyHealth® Footprint

Health system selects ambulatory platform to help achieve single clinical patient record as well as full enterprise engagement platform as foundation for patient strategy

CHICAGO–(BUSINESS WIRE)–Aug. 27, 2019–
Allscripts (NASDAQ: MDRX) today announced that client MaineGeneral Health has expanded its Allscripts Sunrise™ footprint through 2027. This expansion includes the implementation of Sunrise™ Ambulatory Care and the entire Sunrise Perioperative suite of solutions. Also included is the full suite of FollowMyHealth ® solutions, which will be the cornerstone for the health system’s digital patient engagement strategy.

MaineGeneral Health is a comprehensive non-profit system with the mission of enhancing patient health through a range of healthcare services for people of all ages, in a variety of care settings. The health system has two campuses: the Alfond Center for Health in Augusta, which provides inpatient and outpatient care, and the Thayer Center for Health in Waterville, which provides comprehensive outpatient care day surgery and emergency care services. MaineGeneral Health specializes in cancer care, rehabilitation, mental health and substance-use disorder services, home healthcare and hospice services, community outreach programs and retirement living options.

“Allscripts Sunrise will help us achieve a single clinical patient record and unified workflow for medical staff to better serve our communities,” said Chuck Hayes, Chief Executive Officer, MaineGeneral Health. “Additionally, acquiring an enterprise patient engagement solution such as FollowMyHealth will help us better engage our patients, improve outcomes, increase collections and advance patient satisfaction.”

Used by healthcare organizations across the globe, Sunrise is an integrated electronic health record that connects all aspects of care, including ambulatory, surgical, radiology and laboratory services. Built to enable efficient and safe care, Sunrise is a clinician-friendly, evidence-based single platform with integrated analytics that helps deliver true personalized medicine. Sunrise supports all core care venues across the enterprise by delivering a single patient record, and features patient-centric capabilities that increase access and convenience for the consumer.

FollowMyHealth’s technology connects millions of patients to their healthcare providers, making it easy for users to stay connected to and fully engaged in their care. From intuitive mobile tools that deliver timely, relevant, and actionable messages directly to the patient’s mobile device to tools that offer a longitudinal view of a patient’s medical history, FollowMyHealth offers a seamless patient experience throughout the entire care journey.

“This expansion reaffirms Allscripts long-term partnership with MaineGeneral Health and the healthcare organization’s belief in our innovative solutions,” said Allscripts Chief Executive Officer, Paul Black. “We are thrilled to continue working side by side with MaineGeneral Health to deliver world-class care to the people of the greater Kennebec Valley.”

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeandIt Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

For more information contact:

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

08/22/2019

Apple Health Records Available for Allscripts Clients

Allscripts offers new way to access Allscripts iPhone users’ health data

CHICAGO–(BUSINESS WIRE)–Aug. 22, 2019–
Today, Allscripts (NASDAQ: MDRX) announced that Apple Health Records is now available for Allscripts Sunrise™, TouchWorks® and Professional EHR™ clients and their patients. Health Records brings together hospitals, clinics and the existing Apple Health app to make it easy for individuals to see their available health data from multiple providers whenever they choose. Health Records is available for iPhone users running iOS 11.3 or higher. This latest offering is an addition to Allscripts robust patient engagement offering, which includes Allscripts FollowMyHealth®, the EHR-neutral cornerstone of the Allscripts patient engagement solution.

Previously, an individual’s health information was held in multiple locations, requiring patients to log in to each care provider’s website and piece together the information manually. Apple worked with the health care community to take a consumer-friendly approach and created Health Records based on Fast Healthcare Interoperability Resources (FHIR), a standard for transferring electronic medical records.

Now, individuals will have medical information from participating institutions organized into one view, covering allergies, conditions, immunizations, lab results, medications, procedures and vitals, and will receive notifications when their data is updated. Health Records data is encrypted and protected with the user’s iPhone passcode, Touch ID or Face ID.

Sharp HealthCare, Think Whole Person Healthcare, UT Physicians, Blessing Health System, Erie County Medical Center, Sarasota Memorial Health Care System and Digestive Disease Associates are among the healthcare organizations that have participated in early testing.

“Giving our patients easy and mobile access to their healthcare providers and their health records is important to us,” said Think Chief Operating Officer, Rick Pane. “Today, people can access all kinds of information. Their own health records should be at the top of the list. At Think, we aim to be the leaders in changing healthcare and helping people to live their healthiest lives. It makes absolute sense to partner with the leader in technology to help do so.”

“With Health Records on iPhone, patients can become more active members of their own care team,” said Allscripts Chief Executive Officer, Paul M. Black. “Health Records on iPhone empowers individuals to direct how their own health data is stored and used. We are proud to offer this and other FHIR-connected applications for our clients and their patients.”

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers and consumers to make better decisions, delivering better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeand It Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

For more information contact:

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

08/21/2019

Veradigm and Komodo Health Partner to Create the Largest Linked EHR and Claims Dataset for Life Science Research

Partnership combines Veradigm’s industry-leading ambulatory EHR data with Komodo’s Healthcare Map, providing nearly 50 million linked, longitudinal patient records for a deeper understanding of the patient journey

CHICAGO–(BUSINESS WIRE)–Aug. 21, 2019–
Veradigm, an Allscripts (NASDAQ: MDRX) business unit, today announced that it has entered into a long-term strategic partnership with Komodo Health to advance life sciences research. Initially the partnership will focus on linking Allscripts’ industry-leading ambulatory EHR data with Komodo’s Healthcare Map, which contains encounter data from more than 150 private and public payers. Using Komodo Health’s platform, the collaboration will enable Veradigm to provide a linked dataset containing a complete longitudinal view of nearly 50 million deidentified patients to support life sciences companies as they investigate new ways to reduce disease burden.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190821005128/en/

The linked dataset combines detailed clinical and patient lifestyle information along with cost and utilization data captured across all care settings. Veradigm’s model for real-world research is built on access to near real-time patient data, best-in-class analytics and seamless point-of-care programs. In support of Veradigm’s mission to simplify healthcare with data-driven insights and technology that can help manage cost and improve outcomes, the partnership with Komodo Health will enable Veradigm to develop new and creative real-world evidence solutions for its life science customers.

“Komodo has curated one of the largest sources of US healthcare encounters, which offers not just a comprehensive picture of patient journeys across the healthcare system, but a broad view of the US insured population,” said Tom Langan, Chief Executive Officer for Veradigm. “This relationship will enhance our ability to provide a comprehensive understanding of both clinical and economic health outcomes while enabling us to develop new innovative solutions for real world research.”

“Data increasingly must be the backbone of every decision and every product in healthcare – yet stakeholders across the healthcare ecosystem lack access to an accurate view of patient health, provider practices, and outcomes,” said Arif Nathoo, MD, CEO and co-founder of Komodo Health. “Veradigm is changing the game by delivering timely insights from complete patient journeys that will power new technologies and expand the ability of healthcare stakeholders to demonstrate value.”

By linking the largest ambulatory EHR for life science research dataset with Komodo’s Healthcare Map, Veradigm leverages the strengths of each source to offer researchers opportunities to integrate patient history and behavior, detailed clinical symptoms and outcomes, patterns of drug and health services utilization, along with costs to individuals and payers.

About Veradigm™

Veradigm is an integrated data systems and services company that combines data-driven clinical insights with actionable tools to help healthcare stakeholders improve the quality, efficiency, and value of healthcare delivery— including biopharma, health plans, healthcare providers, health technology partners, and most importantly, the patients they serve. We are dedicated to simplifying the complicated healthcare system with next-generation healthcare solutions. This is how we are transforming health, insightfully. To learn more, visit www.veradigmhealth.com.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeandIt Takes A Community: The Allscripts Blog.

About Komodo Health:

Komodo Health has assembled the largest and most comprehensive picture of patient journeys across the US. Its Healthcare Map links more than 150 payer complete datasets, providing real-time and longitudinal data on more than 320 million patients, representing more than 65 billion clinical encounters with 15 million new encounters added daily. Komodo Health’s AI platform cross-links patient journey data with other medical and healthcare datasets to better understand disease burden, predict disease and optimize patient outcomes. For more information, visit komodohealth.com.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

For more information contact:

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Komodo Health Media Relations:

Christine Douglass

PR@komodohealth.com

08/19/2019

WOMBA LLC selects Veradigm™ to automate medical record retrieval implementing Veradigm eChart Courier™ with law firm clients

CHICAGO–(BUSINESS WIRE)–Aug. 19, 2019–
Veradigm™, an Allscripts (NASDAQ: MDRX), business unit, dedicated to simplifying healthcare with data driven health insights and technologies to help manage cost and improve health outcomes, announced today an agreement with WOMBA, LLC, a leading provider of health record retrieval and consolidation to the Life Insurance, Long Term Care, Disability and Legal industries, to automate medical record requests via Veradigm eChart Courier™.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190819005042/en/

WOMBA will utilize Veradigm’s eChart Courier to provide medical chart records to attorneys in an automated, secure and HIPAA compliant manner, pursuant to authorization from patients who are clients. This solution streamlines a time consuming and resource intensive process for attorneys, their clients and, healthcare providers.

Legal actions such as mass tort, class action, product liability, asbestos, medical device, and environmental disaster claims often require attorneys to retrieve thousands of medical records from multiple jurisdictions. The high-volume nature of this work requires law firms to allocate significant resources to either retain full-time staff to retrieve medical records or to outsource the function to service providers who manually retrieve the records over several weeks. These records must then be organized for review by attorneys and retained medical experts.

Veradigm eChart Courier, alongside WOMBA’s decades of experience in the industry improves efficiency and streamlines this process by delivering the clinical data needed for these legal actions electronically. The service not only benefits law firms but also healthcare providers who are regularly inconvenienced by record retrievers hired to manually pull the needed data from medical charts.

“Working with Veradigm to leverage their eChart Courier solution aligns with our vision of providing a seamless secure exchange of medical records using advanced technology,” according to Eli Rowe, CEO of WOMBA. “With electronic access to Veradigm’s national network of patient records, we can expedite data retrieval cost-effectively and save time for our law firm clientele.”

This agreement is a milestone for Veradigm as it continues to grow outside of healthcare, now into the legal sector. “This is an example of how Veradigm is leading the way to deliver positive change in the healthcare ecosystem and beyond by increasing efficiency, thereby simplifying healthcare,” said Tom Langan, CEO of Veradigm. “By expanding our reach outside of the more traditional healthcare sector, we are able to leverage our solutions in new and innovative ways to positively impact the healthcare industry.”

About Veradigm™

Veradigm is an integrated data systems and services company that combines data-driven clinical insights with actionable tools to help healthcare stakeholders improve the quality, efficiency, and value of healthcare delivery— including biopharma, health plans, healthcare providers, health technology partners, and most importantly, the patients they serve. We are dedicated to simplifying the complicated healthcare system with next-generation healthcare solutions. This is how we are transforming health, insightfully. To learn more, visit www.veradigmhealth.com.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeandIt Takes A Community: The Allscripts Blog.

About WOMBA

WOMBA was founded by Eli Rowe, the CEO of PDC Corp., North America’s largest data retrieval company. For over 20 years, PDC Corp. has been the premier provider of aggregated medical records to hundreds of the nations leading Legal, Life, Disability and Long-Term Care insurance providers as well as to the Legal industry. WOMBA is the 21st century arm of PDC utilizing best-in-class technology solutions to automate and digitize the data retrieval process thereby providing a more rapid and efficient service to its customers. To learn more, visit www.womba.com.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

WOMBA Legal/Press

Ben Schlager

917-495-5790

Ben.s@womba.com

Technical Lead

Moti Mitteldorf

718-419-1348

Moti.M@womba.com

08/12/2019

Hendrick Health System leverages Allscripts EHR to achieve HIMSS Analytics EMRAM Stage 7

Not-for-profit healthcare organization one of 63 to earn highest designation through use of Allscripts Sunrise™ EHR solution

CHICAGO–(BUSINESS WIRE)–Aug. 12, 2019–
Allscripts (NASDAQ: MDRX) client Hendrick Health System, located in Abilene, TX, has achieved the prestigious Stage 7, the highest level attainable, on the HIMSS Analytics Electronic Medical Record Adoption Model (EMRAM). This award recognizes Hendrick Health System’s adoption of technology to optimize patient care in a seamless patient record environment using a single Electronic Health Record (EHR) throughout the enterprise.

The HIMSS Analytics Electronic Medical Record Adoption Models use a methodology that measures progress and cumulative capabilities of EMR systems within organizations. According to HIMSS Analytics, there are eight stages (0-7) that measure a hospital or medical group implementation and utilization of information technology applications. The final stage, Stage 7, represents the most advanced patient record environment. The validation process to confirm a group has reached Stage 7 includes a site visit by an executive from HIMSS Analytics and former or current chief information officers to ensure an unbiased evaluation of the Stage 7 environments.

“The EMRAM Stage 7 Award recognizes our effort to create an informed and empowered community of providers, innovators and individuals, enabling an ever-improving state of health and wellness,” said Duane Donaway, director for Technology at Hendrick Health System. “Allscripts Sunrise EHR has been the ideal, robust solution for our organization, managing our clinical, financial and operational needs.”

Hendrick Health System is a not-for-profit healthcare provider affiliated with the Baptist General Convention of Texas, serving a 24-county region in the Texas Midwest. Hendrick opened its doors in 1924, and today, it provides a comprehensive range of healthcare services, including a medical center licensed for 564 beds. More than 3,500 employees make up the Hendrick team.

Used by healthcare organizations across the globe, Sunrise is an integrated EHR that connects all aspects of care, including ambulatory, surgical, radiology and laboratory services. Built to enable efficient and safe care, Sunrise is a clinician-friendly, evidence-based single platform with integrated analytics that helps deliver true personalized medicine. Sunrise supports all core care venues across the enterprise by delivering a single patient record, and features patient-centric capabilities that increase access and convenience for the consumer.

“Hendrick Health System is one of 63 organizations to achieve HIMSS EMRAM Stage 7 using the latest Stage 7 standards,” said Paul Black, Chief Executive Officer, Allscripts. “This makes them one of the top 1.14% of hospitals to achieve this status. We are proud to partner with the health system to leverage the power of information and technology.”

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeand It Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

Investors (Allscripts):

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media (Allscripts):

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Media (Hendrick Health System)

Lynne Bruton

325-670-2431

lbruton@hendrickhealth.org

08/08/2019

Allscripts Announces Second Quarter 2019 Results
  • Strong second quarter bookings of $276 million up 31% from the prior year period
  • Raised 2019 bookings outlook to between $1,050 million and $1,100 million
  • Reached agreement in principle with the DOJ that, if finalized, is intended to resolve all matters related to the investigation of Practice Fusion

CHICAGO–(BUSINESS WIRE)–Aug. 8, 2019–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three and six months ended June 30, 2019.

Second Quarter Financial Highlights

Bookings(1) were $276 million in the second quarter of 2019. This result compares with $211 million in the second quarter of 2018. Contract revenue backlog totaled $3.9 billion as of June 30, 2019.

Second quarter 2019 GAAP revenue was $445 million, up 1 percent year-over-year. Second quarter 2019 non-GAAP revenue also totaled $445 million.

On a GAAP basis in the second quarter of 2019, total operating expenses were $179 million, or a 23 percent decrease year-over-year. Non-GAAP operating expenses totaled $152 million, or a 4 percent decrease year-over-year. Additionally, the company recorded $154 million of transaction, legal and other costs in the second quarter of 2019, primarily due to the agreement in principle with the DOJ discussed below. This compares with $43 million of such costs in the second quarter of 2018.

GAAP net loss in the second quarter of 2019 totaled ($150) million compared with net income of $65 million in the second quarter of 2018. Non-GAAP net income in the second quarter of 2019 totaled $29 million compared with $32 million in the second quarter of 2018.

GAAP loss per share in the second quarter of 2019 was ($0.90), compared with earnings per share of $0.36 in the second quarter of 2018. Non-GAAP diluted earnings per share in the second quarter of 2019 were $0.17 compared with $0.19 in the second quarter of 2018.

Adjusted EBITDA totaled $75 million in the second quarter of 2019, compared with $76 million in the second quarter of 2018.

“Our strong bookings performance continued in the second quarter with success in both our Provider and Veradigm businesses. Our 2019 bookings outlook has been raised, as we anticipate strong performance in the second half of this year. This is the result of our deliberate investments, along with the value we deliver to clients through our comprehensive and industry-leading solutions,” commented Paul M. Black, Chief Executive Officer of Allscripts. “We are well-positioned to drive long-term revenue and earnings growth, as we leverage our strategic platforms and maintain a disciplined capital deployment strategy.”

Other Announcements

Practice Fusion has reached an agreement in principle with the United States Department of Justice (“DOJ”) that, if finalized, is intended to resolve the previously disclosed investigations relating to certain business practices engaged in by Practice Fusion. Allscripts recorded a $145 million charge in the second quarter related to the DOJ investigations, which the Company believes will be sufficient to resolve all potential civil and criminal liability in connection with these investigations.

2019 Financial Outlook(2)

Allscripts currently expects to achieve:

  • Full year 2019 bookings(1) between $1,050 million and $1,100 million, up from prior outlook of between $900 million and $1,000 million
  • Full year 2019 non-GAAP earnings per share between $0.65 and $0.70
  • Third quarter 2019 non-GAAP revenue between $445 million and $455 million
  • Fourth quarter 2019 non-GAAP revenue between $460 million and $470 million

Conference Call

Allscripts will conduct a conference call today, Thursday, August 8th, 2019, at 4:30 PM Eastern Time to discuss its earnings release and other information. Participants may access the conference call via webcast at http://investor.allscripts.com. Participants also may access the conference call by dialing +1 (877) 269-7756 or +1 (201) 689-7817 (international) and requesting Conference ID # 13692981.

A replay of the call will be available approximately two hours after the conclusion of the call, for a period of four weeks, on the Allscripts Investor Relations website or by calling +1 (877) 660-6853 or +1 (201) 612-7415 – Conference ID # 13692981.

Supplemental and non-GAAP financial information is also available at http://investor.allscripts.com.

Footnotes

(1)

Bookings have been determined on a continuing operations basis, excluding Netsmart, and reflect the value of executed contracts for software, hardware, client services, private cloud hosting services, outsourcing and other subscription-based services.

(2)

In providing financial guidance, the company does not reconcile non-GAAP earnings per share and non-GAAP revenue guidance to the corresponding GAAP financial measures. Allscripts does not provide guidance for the various reconciling items since certain items that impact GAAP net income and GAAP revenue such as acquisition-related deferred revenue adjustments, acquisition-related amortization, asset impairment charges and transaction, legal and other costs, any of which may be significant, are either outside of its control and/or cannot be reasonably predicted. Please see the “Explanation of Non-GAAP Financial Measures” at the end of this press release for detailed information on calculating non-GAAP measures. For a reconciliation of other non-GAAP items, see the non-GAAP financial reconciliation tables in this release (Tables 4, 5, 6 and 7).

NOTE: All percentage changes described within this press release are calculated from full dollar amounts as illustrated in the accompanying financial statements and Allscripts Supplemental Financial Data Workbook, posted on the Investor Relations website. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body compared to full dollar amounts in the tables.

About Allscripts

Allscripts (Nasdaq: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements under “2019 Financial Outlook” and statements related to our agreement in principle with the DOJ. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Actual results could differ significantly from those set forth in the forward-looking statements and reported results should not be considered an indication of future performance. Certain factors that could cause Allscripts actual results to differ materially from those described in the forward-looking statements include, but are not limited to: the final outcome of the criminal and civil investigations by the DOJ involving Practice Fusion, including our ability to negotiate final settlement agreements with the DOJ and the terms of such agreements; potential additional investigations and proceedings from governmental entities or third parties other than the DOJ related to the same or similar conduct underlying the DOJ’s investigation into Practice Fusion’s business practices; the expected financial results of business acquired by us, including the EIS business, the NantHealth provider/patient solutions business, Practice Fusion and HealthGrid; the successful integration of businesses recently acquired by us; the anticipated and unanticipated expenses and liabilities related to the EIS business, the NantHealth provider/patient solutions business, Practice Fusion and HealthGrid, including the civil investigation by the U.S. Attorney’s Office involving our EIS business; security breaches resulting in unauthorized access to our or our clients’ computer systems or data, including denial-of-services, ransomware or other Internet-based attacks; Allscripts failure to compete successfully; consolidation in Allscripts industry; current and future laws, regulations and industry initiatives; increased government involvement in Allscripts industry; the failure of markets in which Allscripts operates to develop as quickly as expected; Allscripts or its customers’ failure to see the benefits of government programs; changes in interoperability or other regulatory standards; the effects of the realignment of Allscripts sales, services and support organizations; market acceptance of Allscripts products and services; the unpredictability of the sales and implementation cycles for Allscripts products and services; Allscripts ability to manage future growth; Allscripts ability to introduce new products and services; Allscripts ability to establish and maintain strategic relationships; risks related to the acquisition of new businesses or technologies; the performance of Allscripts products; Allscripts ability to protect its intellectual property rights; the outcome of legal proceedings involving Allscripts; Allscripts ability to hire, retain and motivate key personnel; performance by Allscripts content and service providers; liability for use of content; price reductions; Allscripts ability to license and integrate third party technologies; Allscripts ability to maintain or expand its business with existing customers; risks related to international operations; changes in tax rates or laws; business disruptions; Allscripts ability to maintain proper and effective internal controls; and asset and long-term investment impairment charges. Additional information about these and other risks, uncertainties, and factors affecting Allscripts business is contained in Allscripts filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in the most recent Allscripts Annual Report on Form 10-K and subsequent Form 10-Qs. Allscripts does not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in its business, financial condition or operating results over time.

Table 1

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

June 30,

December 31,

2019

2018

ASSETS
Current assets:
Cash and cash equivalents

$138.9

$174.2

Restricted cash

9.2

10.6

Accounts receivable, net

428.1

465.3

Contract assets

75.4

66.4

Prepaid expenses and other current assets

152.5

142.5

Total current assets

804.1

859.0

Fixed assets, net

105.9

121.9

Software development costs, net

225.6

209.7

Intangible assets, net

402.8

431.1

Goodwill

1,382.2

1,373.7

Deferred taxes, net

5.0

5.0

Contract assets – long-term

98.4

71.9

Right-of-use assets – operating leases

96.1

0.0

Other assets

115.4

109.2

Total assets

$3,235.5

$3,181.5

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$90.7

$73.2

Accrued expenses

256.5

107.0

Accrued compensation and benefits

53.8

100.1

Income tax payable

0.0

29.6

Deferred revenue

432.2

466.8

Current maturities of long-term debt

22.1

20.1

Current operating lease liabilities

24.5

0.0

Current liabilities attributable to discontinued operations

0.0

0.9

Total current liabilities

879.8

797.7

Long-term debt

822.7

647.5

Deferred revenue

13.0

16.0

Deferred taxes, net

56.9

58.5

Long-term operating lease liabilities

93.1

0.0

Other liabilities

53.8

81.4

Total liabilities

1,919.3

1,601.1

Total Allscripts Healthcare Solutions, Inc.’s stockholders’ equity

1,316.2

1,551.1

Non-controlling interest

0.0

29.3

Total stockholders’ equity

1,316.2

1,580.4

Total liabilities and stockholders’ equity

$3,235.5

$3,181.5

Table 2

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Revenue:
Software delivery, support and maintenance

$285.0

$284.4

$560.5

$565.0

Client services

159.5

157.0

316.0

310.2

Total revenue

444.5

441.4

876.5

875.2

Cost of revenue:
Software delivery, support and maintenance

91.4

93.0

179.5

179.0

Client services

140.0

150.2

281.6

287.3

Amortization of software development and acquisition-related assets (a)

29.0

24.6

57.2

50.5

Total cost of revenue

260.4

267.8

518.3

516.8

Gross profit

184.1

173.6

358.2

358.4

Selling, general and administrative expenses

105.6

122.9

205.8

242.9

Research and development

63.4

74.5

127.7

139.3

Asset impairment charges

3.7

30.1

3.8

30.1

Amortization of intangible and acquisition-related assets

6.7

6.4

13.5

13.0

Income (loss) from operations

4.7

(60.3

)

7.4

(66.9

)

Interest expense and other, net (b)

(155.4

)

(12.0

)

(165.1

)

(23.7

)

Gain (loss) on sale of business, net

0.0

173.2

0.0

172.3

Recovery (impairment) on long-term investments

0.0

(10.0

)

1.0

(15.5

)

Equity in net income (loss) of unconsolidated investments

0.3

0.9

0.2

0.8

Income (loss) before income taxes

(150.4

)

91.8

(156.5

)

67.0

Income tax (provision) benefit

0.5

(7.3

)

(1.4

)

(7.6

)

Income (loss) from continuing operations, net of tax

(149.9

)

84.5

(157.9

)

59.4

Income (loss) from discontinued operations

0.0

(14.1

)

0.0

(19.1

)

Income tax effect on discontinued operations

0.0

3.8

0.0

5.4

Income (loss) from discontinued operations, net of tax

0

(10.3

)

0.0

(13.7

)

Net income (loss)

(149.9

)

74.2

(157.9

)

45.7

Net (income) loss attributable to non-controlling interest

0.0

2.7

0.4

3.5

Accretion of redemption preference on redeemable convertible
non-controlling interest – discontinued operations

0.0

(12.2

)

0.0

(24.3

)

Net Income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders

($149.9

)

$64.7

($157.5

)

$24.9

Income (loss) from continuing operations per share – basic

($0.90

)

$0.49

($0.94

)

$0.35

Income (loss) from discontinued operations per share – basic

$0.00

($0.13

)

$0.00

($0.21

)

Income (loss) earnings per share – basic

($0.90

)

$0.36

($0.94

)

$0.14

Income (loss) from continuing operations per share – diluted

($0.90

)

$0.49

($0.94

)

$0.35

Income (loss) from discontinued operations per share – diluted

$0.00

($0.13

)

$0.00

($0.21

)

Income (loss) earnings per share – diluted

($0.90

)

$0.36

($0.94

)

$0.14

Weighted average common shares outstanding:
Basic

166.5

176.4

168.2

178.1

Diluted

166.5

179.3

168.2

181.4

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

(a) Amortization of software development and acquisition-related assets includes:
Amortization of capitalized software development costs

$20.0

$15.3

$39.2

$31.1

Amortization of acquisition-related intangible assets

9.0

9.3

18.0

19.4

$29.0

$24.6

$57.2

$50.5

(b) Interest expense and other, net are comprised of the following for the periods presented:
Non-cash charges to interest expense

$3.3

$3.2

$6.6

$6.3

Interest expense

6.4

8.1

12.6

16.0

Amortization of discounts and debt issuance costs

0.7

0.7

1.4

1.4

Other (income) loss, net

145.0

0.0

144.5

0.0

Total interest expense and other, net

$155.4

$12.0

$165.1

$23.7

Table 3

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Cash flows from operating activities:
Net income (loss)

($149.9

)

$74.2

($157.9

)

$45.7

Less: Income(loss) from discontinued operations

0.0

(10.3

)

0.0

(13.7

)

Income (loss) from continuing operations

($149.9

)

$84.5

($157.9

)

$59.4

Non-cash adjustments to net income (loss):
Depreciation and amortization

50.5

47.3

100.6

95.2

Operating right-to-use asset amortization

5.7

0.0

11.0

0.0

Stock-based compensation expense

10.1

7.2

21.8

17.2

Asset impairment charges

3.7

30.1

3.8

30.1

Impairment (recovery) of long-term investments

0.0

10.0

(1.0

)

15.5

(Gain) loss on sale of businesses, net

0.0

(173.2

)

0.0

(172.3

)

Other, net

0.1

8.2

0.3

8.0

Total non-cash adjustments to net income (loss)

70.1

(70.4

)

136.5

(6.3

)

Cash impact of changes in operating assets and liabilities

72.1

(6.9

)

49.5

8.4

Net cash provided by (used in) operating activities – continuing operations

(7.7

)

7.2

28.1

61.5

Net cash provided by (used in) operating activities – discontinued operations

0.0

1.0

(30.0

)

5.0

Net cash provide by (used in) operating activities

(7.7

)

8.2

(1.9

)

66.5

Cash flows from investing activities:
Capital expenditures

(4.6

)

(6.5

)

(9.4

)

(14.0

)

Capitalized software

(26.6

)

(31.1

)

(55.2

)

(57.3

)

Purchases of equity securities in partner entities, business
acquisitions, net of cash acquired and other investments

(12.9

)

174.0

(12.9

)

66.8

Net cash provided by (used in) investing activities – continuing
operations

(44.1

)

136.4

(77.5

)

(4.5

)

Net cash provided by (used in) investing activities – discontinued – operations

0.0

(7.1

)

0.0

(16.0

)

Net cash provided by (used in) investing activities

(44.1

)

129.3

(77.5

)

(20.5

)

Cash flows from financing activities:
Repurchase of common stock

0.0

(44.3

)

(65.1

)

(101.9

)

Proceeds from sale or issuance of common stock

0.0

0.0

0.0

0.2

Stock-based compensation-related payments, net

(1.4

)

(0.1

)

(6.7

)

(8.6

)

Credit facilities and capital lease payments, net

55.0

(85.0

)

169.9

60.6

Other payments

(1.5

)

(7.0

)

(55.5

)

(10.2

)

Net cash provided by (used in) financing activities – continuing operations

52.1

(136.4

)

42.6

(59.9

)

Net cash provided by (used in) financing activities – discontinued operations

0.0

(3.8

)

0.0

(7.6

)

Net cash provided by (used in) financing activities

52.1

(140.2

)

42.6

(67.5

)

Effect of exchange rate changes on cash and cash equivalents

(0.1

)

(0.3

)

0.1

(0.2

)

Net increase (decrease) in cash and cash equivalents

0.2

(3.0

)

(36.7

)

(21.7

)

Cash and cash equivalents, beginning of period

147.9

143.8

184.8

162.5

Cash and cash equivalents, end of period

$148.1

$140.8

$148.1

$140.8

Less: Cash and cash equivalents included in current assets attributable to discontinued operations

0.0

(14.8

)

0.0

(14.8

)

Cash, cash equivalents and restricted cash, end of period, excluding discontinued operations

$148.1

$126.0

$148.1

$126.0

Table 4

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions, except per share amounts)

(Unaudited)

Three Months Ended June 30, 2019

Three Months Ended June 30, 2018

GAAP

Non-GAAP

Adjustments (1)

Non-GAAP

GAAP

Non-GAAP

Adjustments (1)

Non-GAAP

Revenue

$444.5

$0.5

$445.0

$441.4

$7.7

$449.1

Gross profit

184.1

12.3

196.4

173.6

32.8

206.4

Total Operating Expenses

179.4

(27.8

)

151.6

233.9

(75.4

)

158.5

Income (loss) from operations

4.7

40.1

44.8

(60.3

)

108.2

47.9

Income (loss) from continuing operations, net of tax, net of non-controlling interest

($149.9

)

$178.6

$28.7

$87.2

($54.9

)

$32.3

Income (loss) from continuing operations per share – diluted

($0.90

)

$0.17

$0.49

$0.19

Effective Tax Rate

0

%

24

%

8

%

27

%

Weighted average common shares outstanding – diluted

166.5

167.5

179.3

179.3

Six Months Ended June 30, 2019

Six Months Ended June 30, 2018

GAAP

Non-GAAP

Adjustments (1)

Non-GAAP

GAAP

Non-GAAP

Adjustments (1)

Non-GAAP

Revenue

$876.5

$1.1

$877.6

$875.2

$9.3

$884.5

Gross profit

358.2

24.7

382.9

358.4

49.9

408.3

Total Operating Expenses

350.8

(54.4

)

296.4

425.3

(111.4

)

313.9

Income (loss) from operations

7.4

79.1

86.5

(66.9

)

161.3

94.4

Income (loss) from continuing operations, net of tax, net of non-controlling interest

($157.5

)

$213.1

$55.6

$62.9

($2.1

)

$60.8

Income (loss) from continuing operations per share – diluted

($0.94

)

$0.33

$0.35

$0.34

Effective Tax Rate

-1

%

24

%

11

%

27

%

Weighted average common shares outstanding – diluted

168.2

169.6

181.4

181.4

(1) Please see table 6 for detail on Non-GAAP adjustments.

Table 5

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information – Adjusted EBITDA

(In millions, except percentages)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Net income (loss) from continuing operations, as reported

($149.9

)

$84.5

($157.9

)

$59.4

Plus:
Interest expense and other, net (a)

6.4

8.1

12.1

16.0

Depreciation and amortization

50.5

47.3

100.6

95.2

Equity in net (income) loss of unconsolidated investments

(0.3

)

(0.8

)

(0.2

)

(0.7

)

Tax provision/(benefit)

(0.5

)

7.3

1.4

7.6

EBITDA

($93.8

)

$146.4

($44.0

)

$177.5

Plus:
Acquisition-related deferred revenue adjustments

0.5

10.0

1.1

13.9

Stock-based compensation expense

11.2

9.0

24.0

19.9

Transaction, legal and other costs

153.7

43.4

163.4

64.9

Asset impairment charges

3.7

30.1

3.8

30.1

(Recovery) impairment on long-term investments

0.0

10.0

(1.0

)

15.5

(Gain) loss on sale of business, net

0.0

(173.2

)

0.0

(172.3

)

Adjusted EBITDA

$75.3

$75.7

$147.3

$149.5

Adjusted EBITDA margin (b)

17

%

17

%

17

%

17

%

(a) Interest expense and other, net has been adjusted from the amounts presented in the statements of operations in order to remove the amortization of the fair value of the cash conversion option embedded in the 1.25% Cash Convertible Notes and deferred debt issuance costs from interest expense since such amortization is also included in depreciation and amortization.
(b) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue.
Table 6
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Non-GAAP Adjustments
(In millions, except percentages)
(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Income (loss) from continuing operations, net of tax and net of non-controlling interest

($149.9

)

$87.2

($157.5

)

$62.9

Acquisition-related deferred revenue adjustments

0.5

10.0

1.1

13.9

Revenue

0.5

7.7

1.1

9.3

Gross Profit

0.5

10.0

1.1

13.9

Income (loss) from operations

0.5

10.0

1.1

13.9

Acquisition-related amortization

15.7

15.7

31.5

32.5

Gross Profit

9.0

9.3

18.0

19.5

Income (loss) from operations

15.7

15.7

31.5

32.5

Stock-based compensation expense

11.2

9.0

24.0

19.9

Gross Profit

1.8

1.6

3.4

3.6

Income (loss) from operations

11.2

9.0

24.0

19.9

Asset impairment charges

3.7

30.1

3.8

30.1

Income (loss) from operations

3.7

30.1

3.8

30.1

Transaction, legal and other costs

154.0

43.3

163.7

64.8

Gross Profit

1.0

11.9

2.2

12.9

Income (loss) from operations

9.0

43.3

18.7

64.8

Income (loss) from continuing operations before income taxes

154.0

43.3

163.7

64.8

Non-cash charges to interest expense and other

3.3

3.6

6.6

7.2

(Recovery) impairment on long-term investments

0.0

10.0

(1.0

)

15.5

(Gain) loss on sale of business, net

0.0

(173.2

)

0.0

(172.3

)

Equity in net (income) loss of unconsolidated investments

(0.3

)

(0.8

)

(0.2

)

(0.7

)

Tax rate alignment

(9.5

)

(3.4

)

(16.1

)

(13.5

)

Net (income) loss attributable to non-controlling interest

0.0

0.8

(0.3

)

0.5

Non-GAAP income (loss) attributable to Allscripts Healthcare Solutions, Inc.

$28.7

$32.3

$55.6

$60.8

Non-GAAP effective tax rate

24

%

27

%

24

%

27

%

Weighted average shares outstanding – diluted

167.5

179.3

169.6

181.4

Table 7
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Free Cash Flow
(In millions)
(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Net cash provided by (used in) operating activities – continuing operations

($7.7

)

$7.2

$28.1

$61.5

Net cash provided by (used in) operating activities – discontinued operations

0.0

1.0

(30.0

)

5.0

Net cash provided by (used in) operating activities

(7.7

)

8.2

(1.9

)

66.5

Cash flows from investing activities:
Capital expenditures

(4.6

)

(6.5

)

(9.4

)

(14.0

)

Capitalized software

(26.6

)

(31.1

)

(55.2

)

(57.3

)

Cash flows from investing activities – discontinued operations

0.0

(7.1

)

0.0

(14.2

)

Free cash flow

($38.9

)

($36.5

)

($66.5

)

($19.0

)

Explanation of Non-GAAP Financial Measures

Allscripts reports its financial results in accordance with U.S. generally accepted accounting principles, or GAAP. To supplement this information, Allscripts presents in this release non-GAAP revenue, gross profit, gross margin, operating expense, income from operations, Adjusted EBITDA, effective income tax rate, net income and earnings per share, which are considered non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. The definitions of non-GAAP financial measures used throughout this document are presented below:

  • Non-GAAP revenue consists of GAAP revenue, as reported, and adds back recognized deferred revenue from the EIS business, Practice Fusion, HealthGrid, NantHealth’s provider/patient solutions business and non-material consolidated affiliates that is eliminated for GAAP purposes due to purchase accounting adjustments. Reconciliations to GAAP revenue are found in Tables 4 and 6 within this press release.
  • Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related deferred revenue adjustments, acquisition-related amortization, stock-based compensation expense, non-cash asset impairment charges and transaction, legal and other costs. Non-GAAP gross margin consists of non-GAAP gross profit as a percentage of non-GAAP revenue in the applicable period. Reconciliations to GAAP gross profit are found in Tables 4 and 6 within this press release.
  • Non-GAAP operating expense consists of GAAP selling, general and administrative expenses (SG&A) and research and development expense (R&D), as reported, and excludes transaction, legal and other costs and stock-based compensation expense recorded to SG&A and R&D. Reconciliations to GAAP operating expense are found in Table 4 within this press release.
  • Non-GAAP income from operations consists of GAAP income from operations, as reported, and excludes acquisition-related deferred revenue adjustments, acquisition-related amortization, stock-based compensation expense, non-cash asset impairment charges and transaction, legal and other costs. Reconciliations to GAAP income from operations are found in Tables 4 and 6 within this press release.
  • Adjusted EBITDA is a non-GAAP measure and consists of GAAP net income/(loss), as reported, and adjusts for: acquisition-related deferred revenue adjustments; depreciation and amortization; stock-based compensation expense; transaction, legal and other costs; non-cash asset and long-term investment impairment charges; gain on sale of businesses, net; interest expense and other, net; equity in net earnings of unconsolidated investments; and tax provision (benefit). Reconciliations to GAAP net income/(loss) are found in Table 5 within this press release.
  • Non-GAAP effective income tax rate is based on non-GAAP pre-tax earnings and consists of the statutory federal income tax rate, Allscripts effective state income tax rate and adjustments for permanent differences.
  • Non-GAAP net income consists of GAAP net income/(loss), as reported, and adds back acquisition-related deferred revenue adjustments; acquisition-related amortization; stock-based compensation expense; transaction, legal and other costs; non-cash asset and long-term investment impairment charges; non-cash charges to interest expense and other, asset impairment charges; gain on sale of business, net; and equity in net earnings of unconsolidated investments and the related tax effect of the aforementioned adjustments. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income/(loss) are found in Tables 4 and 6 within this press release.
  • Non-GAAP net income attributable to Allscripts Healthcare Solutions, Inc. is a non-GAAP measure and consists of non-GAAP net income, as described above, with an adjustment to reduce non-GAAP net income for the percentage of non-controlling interest outside Allscripts ownership position.
  • Non-GAAP earnings per share consist of non-GAAP net income, as defined above, divided by weighted shares outstanding – diluted during the applicable period.
  • Free cash flow consists of GAAP cash flows provided by operating activities in the applicable period, net of capital expenditures and capitalized software costs, including those incurred by businesses presented as discontinued operations. Reconciliations to GAAP cash flows provided by operating activities are found in Table 7 within this press release.

Acquisition-Related Deferred Revenue Adjustments. Deferred revenue adjustments include acquisition-related deferred revenue adjustments, which reflect the fair value adjustments to deferred revenue acquired in a business acquisition. The fair value of acquired deferred revenue represents an amount equivalent to the estimated cost plus an appropriate profit margin, to perform services related to the acquiree’s software and product support, which assumes a legal obligation to do so, based on the deferred revenue balances as of the acquisition date. Allscripts adds back acquisition-related deferred revenue adjustments for its non-GAAP financial measures because it believes the inclusion of this amount directly correlates to the underlying performance of Allscripts operations.

Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. Allscripts excludes acquisition-related amortization expense from non-GAAP gross profit, non-GAAP operating income, and non-GAAP net income because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods because of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods.

Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. Allscripts excludes stock-based compensation expense from non-GAAP gross profit, non-GAAP operating income, non-GAAP operating expense, non-GAAP net income and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods.

Asset impairment charges. Asset impairment charges include (i) the write-off of purchased third-party software as a result of our decision to discontinue several software development projects, (ii) the write-off of acquired technology and value assigned to commercial agreements, and (iii) the write-off of the book value of certain fixed assets that resulted from consolidating business functions and locations.

Transaction, Legal and Other Costs. Transaction, legal and other costs relate to certain legal proceedings and investigations, consulting, severance, incentive compensation and other charges incurred in connection with activities that are considered not reflective of our core business.

Allscripts excludes transaction, legal and other costs, in whole or in part, from non-GAAP gross profit, non-GAAP operating income, non-GAAP operating expense, non-GAAP net income and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods.

Non-Cash Charges to Interest Expense and Other. Non-cash charges to interest expense include the amortization of the fair value of the cash conversion option embedded in the 1.25 percent Cash Convertible Notes issued by Allscripts during the second quarter of 2013.

Impairment of Long-Term Investments. Impairment of long-term investments relates to other-than-temporary non-cash impairment charges associated with such investments based on management’s assessment of the likelihood of near-term recovery of the investments’ value. The amounts recorded during the three months ended March 31, 2018 relate to a non-cash impairment charge related to one of our cost-method equity investments and a related note receivable.

Gain on sale of business, net. Gain on sale of businesses, net for the quarter ended June 30, 2018 consists of a $177.9 million gain, partly offset by a ($4.7) million loss, from the divestitures of our OneContent and Strategic Sourcing businesses, respectively, both of which were acquired as part of the EIS transaction during the fourth quarter of 2017. Gain on sale of business, net for the six months ended June 30, 2018, includes $0.9 million of divesture-related loss previously reported as part of transaction-related and other costs during the quarter ended March 31, 2018.

Equity in Net loss (income) of Unconsolidated Investments. Equity in net loss (income) of unconsolidated investments represents Allscripts share of the equity earnings of our investments in third parties accounted for under the equity method, including the amortization of cost basis adjustments.

Tax Rate Alignment. Tax rate alignment aligns the applicable period’s effective tax rate to the expected annual non-GAAP effective tax rate.

Management also believes that non-GAAP revenue, gross profit, gross margin, operating expense, income from operations, effective income tax rate, net income, earnings per share, Adjusted EBITDA, and free cash flow provide useful supplemental information to management and investors regarding the underlying performance of Allscripts business operations. Acquisition accounting adjustments made in accordance with GAAP can make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP adjustments provided and discussed herein.

Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use non-GAAP gross profit, operating expense, operating income, net income, earnings per share and/or Adjusted EBITDA to measure achievement under Allscripts stock and cash incentive compensation plans. Note, however, that non-GAAP gross profit, operating income, net income earnings per share and Adjusted EBITDA are performance measures only, and they do not provide any measure of cash flow or liquidity. Allscripts considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after capital expenditures and capitalized software costs. Free cash flow provides management and investors a valuable measure to determine the quantity of capital generated that can be deployed to create additional shareholder value by a variety of means. Non-GAAP financial measures are not in accordance with, or an alternative for, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Allscripts results of operations as determined in accordance with GAAP. Investors and potential investors are encouraged to review the definitions and reconciliations of non-GAAP financial measures with GAAP financial measures contained within the attached condensed consolidated financial statements.

Source: Allscripts Healthcare Solutions, Inc.

For more information contact:

Investors:

Stephen Shulstein

312-386-6735

stephen.shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

07/24/2019

Allscripts to Release Second-Quarter 2019 Financial Results August 8

CHICAGO–(BUSINESS WIRE)–Jul. 24, 2019–
Allscripts Healthcare Solutions, Inc. (Nasdaq:MDRX) will report its financial results for the three months ended June 30, 2019, after the close of stock market hours on Thursday, August 8, 2019. Allscripts management plans to host a conference call and webcast to discuss the company’s earnings and other information at 4:30 p.m. Eastern Time that same day.

Second-Quarter 2019 Financial Results Call Details

The Allscripts earnings announcement will be distributed immediately after the close of regular stock market hours on August 8, 2019. The announcement will also be available at Allscripts investor relations website.

To listen to the conference call, participants may log onto the Allscripts Investor Relations website. Participants also may access the conference call by dialing (877) 269-7756 or 201-689-7817 and requesting Conference ID #13692981.

A replay of the call will be available approximately two hours after the conclusion of the call, for a period of four weeks, on the Allscripts investor relations website or by calling (877) 660-6853 or (201) 612-7415 – Conference ID # 13692981.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeand It Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts Healthcare Solutions, Inc.

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

07/16/2019

St. Luke’s Medical Center Selects Allscripts Sunrise™

Allscripts client in Philippines to provide first-of-its-kind acute care services

CHICAGO–(BUSINESS WIRE)–Jul. 16, 2019–
St. Luke’s Medical Center, located in the Philippines, has selected Allscripts (NASDAQ: MDRX) Sunrise™ Acute Care as its electronic health record (EHR) to achieve the goal of standardization across its facilities via a single, integrated EHR. St. Luke’s Medical Center further represents the company’s growing momentum in territories outside of the United States.

St. Luke’s Medical Center is recognized as the leading and most respected healthcare institution in the Philippines, having a total of 1,146 rooms with its Quezon City and Global City sites. A testament to St. Luke’s world-class quality medical service is its accreditation with prestigious international organizations. One of which is the Joint Commission International– the recognized leader in international healthcare accreditation. It is the most reliable accrediting body in the medical field that evaluates institutions outside the United States, based on stringent evidence-based global standards. St. Luke’s Quezon City became the first JCI-accredited hospital in the Philippines in 2003. In 2016, it also became the first JCI-accredited academic medical center in the country. St. Luke’s Global City, on the other hand, was granted the JCI accreditation in 2012.

“Our goal in St. Luke’s is to continuously strive to improve the patient experience and the delivery of high-quality healthcare. We aim to maintain our gold standard of global healthcare. Implementing Allscripts Sunrise EHR will help us achieve this goal by providing a single patient record with standardized data,” said President and CEO Dr. Arturo De La Peña. “In addition, we believe Allscripts Sunrise will help elevate the medical center to the HIMSS EMRAM digital maturity model, significantly improving the quality of care we provide.”

Used by healthcare organizations across the globe, Allscripts Sunrise is an integrated electronic health record that connects all aspects of care, including ambulatory, surgical, radiology and laboratory services. Built to enable efficient and safe care, Sunrise is a clinician-friendly, evidence-based single platform with integrated analytics that helps deliver true personalized medicine. Sunrise supports all core care venues across the enterprise by delivering a single patient record, and features patient-centric capabilities that increase access and convenience for the consumer.

“St. Luke’s is fully committed to delivering the highest quality health care in the Philippines, and we are eager to help improve the experience for the hospital, clinicians and patients with a single patient record and streamlined workflows,” said Rohan Ward, Allscripts General Manager, Asia.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeandIt Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

For more information contact:

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

07/09/2019

Allscripts offers a new option for Microsoft’s HealthVault users to transition their health data

Allscripts patient engagement platform, FollowMyHealth®, leverages open standards and enables interoperability of healthcare data

CHICAGO–(BUSINESS WIRE)–Jul. 9, 2019–
Allscripts (NASDAQ: MDRX) announced its patient and consumer engagement platform, FollowMyHealth, as a platform for existing Microsoft HealthVault users to transition and share their health data with family, friends or their home care team when required. FollowMyHealth offers a streamlined option for users to export their existing data and continue tracking their health online or through its mobile apps on iOS and Android. HealthVault will be retired on November 20, 2019.

FollowMyHealth’s technology connects millions of patients to their healthcare providers, making it easy for users to stay connected to and fully engaged in their care. From an intuitive mobile app to advanced tools for managing health, FollowMyHealth offers a seamless patient experience throughout the entire care journey.

Users can transfer their Microsoft HealthVault data into FollowMyHealth between now and November 20, 2019. FollowMyHealth is free to sign up and is rated highly by patients on both the App Store and Google Play Store. HealthVault users will have an easy transition and be able to continue accessing valuable functionality through FollowMyHealth. These features include connecting to a FollowMyHealth provider, adding wireless goal-tracking devices, keeping a health journal, and creating charts to see patterns with just a click, to name a few. Detailed step-by-step instructions for HealthVault users to complete their data transfer to FollowMyHealth can be found here.

“We’re proud to serve as a consumer health platform for improved access across all care settings, providing patients with a single and convenient mobile app for all their health information,” said Paul M. Black, Chief Executive Officer of Allscripts.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers and consumers to make better decisions, delivering better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeand It Takes A Community: The Allscripts Blog.

© 2019 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Source: Allscripts

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

07/02/2019

Veradigm™ Partners with American College of Cardiology to develop next-generation research network: NCDR PINNACLE and Diabetes Collaborative Registries

Creates large scale, digitally enabled clinical quality improvement and research network in US

CHICAGO–(BUSINESS WIRE)–Jul. 2, 2019–
Veradigm™, an Allscripts (NASDAQ: MDRX), business unit dedicated to simplifying healthcare with data driven health insights and technologies to help manage costs and improve health outcomes, announced today that it has partnered with the American College of Cardiology (ACC) to power the next generation of real-world research on behalf of cardiovascular disease and diabetes patients around the world. As part of this partnership, Veradigm will operate the PINNACLE Registry®, which focuses on coronary artery disease, hypertension, heart failure, atrial fibrillation and diabetes in the outpatient setting, and the Diabetes Collaborative Registry, the first global, cross-specialty clinical registry designed to track and improve the quality of diabetes and metabolic care across the primary care and specialty care continuum from the American College of Cardiology.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190702005582/en/

PINNACLE and Diabetes Collaborative Registries will extend Veradigm’s EHR-enabled ambulatory research network to create a large-scale chronic disease network with more than 250,000 clinicians and 150 million patients including Veradigm partner data sets in the United States. In addition to integrating Veradigm’s technology, data and analytic capabilities with the ACC’s PINNACLE Registry and Diabetes Collaborative Registry, the partnership will leverage Veradigm’s large specialist and primary care provider network, utilizing its electronic health record platforms to bring ACC’s clinical guidelines, decision pathways, education and wealth of provider and patient engagement tools to the point of care.

“It is essential that clinicians have access to the most comprehensive clinical information that technology allows for to provide their patients with the best possible care,” said Richard J. Kovacs, MD, FACC, President of the American College of Cardiology. “Through this partnership, we are committing to innovative ways to further the field of cardiology and fulfilling our mission to transform cardiovascular care and improve heart health by delivering a wider breadth of clinical tools and research opportunities to registry participants.”

This relationship provides value for patients and providers of healthcare across the US health care ecosystem, while maintaining all the benefits of current participation in the PINNACLE Registry and Diabetes Collaborative Registry. Stephanie Reisinger, GM & VP Veradigm says, “physicians will have greater opportunities to participate in research studies and have increased access to evidence-based medicine and tools and can expect clinical workflow solutions to be deployed more seamlessly at the point-of-care.”

About Veradigm

Veradigm is an integrated data systems and services business that combines data-driven clinical insights with actionable tools for clinical workflow, research, analytics, and media. Our solutions are designed to help key healthcare stakeholders to improve the quality, efficiency, and value of healthcare delivery – from biopharma to health plans, healthcare providers, health technology partners, and most importantly, the patients they serve. We are dedicated to simplifying the complicated healthcare system with next-generation healthcare solutions. That is how we are transforming health, insightfully. To learn more, visit https://veradigmhealth.com/ Twitter, Facebook, and LinkedIn.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers and consumers to make better decisions, delivering better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTubeand It Takes A Community: The Allscripts Blog.

The American College of Cardiologyenvisions a world where innovation and knowledge optimize cardiovascular care and outcomes. As the professional home for the entire cardiovascular care team, the mission of the College and its more than 52,000 members is to transform cardiovascular care and to improve heart health. The ACC bestows credentials upon cardiovascular professionals who meet stringent qualifications and leads in the formation of health policy, standards and guidelines. The College also provides professional medical education, disseminates cardiovascular research through its world-renowned JACC Journals, operates national registries to measure and improve care, and offers cardiovascular accreditation to hospitals and institutions. For more, visit acc.org.

Source: Allscripts

Investors

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com