Company Will Market Allscripts Solution to the More Than 100,000 Physician Practices it Serves, and Physicians Nationwide
CHICAGO and MELVILLE, NY – June 11, 2009 – Allscripts (NASDAQ: MDRX), the clear leader in software, services, information, and connectivity solutions for physicians and hospitals, and Henry Schein, Inc. (NASDAQ: HSIC), the largest distributor of healthcare products and services to office-based practitioners, today announced a strategic partnership to market the Allscripts Professional® Electronic Health Record.
Under the exclusive agreement for the Allscripts Professional Electronic Health Record, Henry Schein’s national medical sales force of more than 625 field and telesales representatives will market the solution to physicians nationwide, including Henry Schein’s customer base of more than 100,000 physician practices. Henry Schein also will work with its medical device and productivity partners to drive full integration of their solutions into the Allscripts EHR, eventually providing a fully integrated patient experience that also helps to drive the bottom line performance of Schein’s physician clients.
Adding the Allscripts Professional Electronic Health Record to Henry Schein’s extensive portfolio of medical supplies, pharmaceuticals, equipment, financial and other services enables the company to serve as a one-stop provider for physician practice needs. At the same time, the agreement vastly enhances Allscripts ability to sell into physician practices across the country, where Electronic Health Record adoption is expected to increase exponentially in response to new federal incentives for their use.
Henry Schein will also refer to Allscripts, on a non-exclusive basis, leads for other Allscripts software solutions.“Our mission is to help our customers succeed by offering the technology needed to operate an efficient practice and deliver high-quality healthcare, and Allscripts is the market leader and the ideal partner,” said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein. “Given that the federal government is providing significant financial incentives for physicians to adopt electronic health records, we expect that many of our physician customers will be looking for a quality solution and we are proud to represent Allscripts.”
The American Recovery and Reinvestment Act (ARRA) of 2009, signed into law by President Obama on February 17, 2009 provides maximum incentives of between $44,000 and $64,000 over five years, beginning in 2011, to physicians who deploy and use a certified Electronic Health Record to improve the quality and cost-effectiveness of patient care. Physicians who have not adopted a certified EHR by 2014 are expected to have their Medicare reimbursements reduced by up to three percent beginning in 2015.
A recent Allscripts survey of 1,888 healthcare professionals revealed that 98 percent of physician practices would take advantage of the incentives or would be closely evaluating the opportunity.
“As physicians move to take advantage of the stimulus incentives and quickly select an electronic health record, who better to trust with this critical decision than Henry Schein, a company they already rely on for all of their practice needs,” said Glen Tullman, Chief Executive Officer of Allscripts. “We’re proud to help Henry Schein’s clients into the information-based healthcare system of the future with an electronic health record that has the depth and breadth they need to deliver high quality care cost effectively.”
The Allscripts Professional Electronic Health Record is an easy-to-deploy, physician-centric solution that improves the delivery of safe, cost-effective, high-quality care. The solution for practices of all sizes and settings provides caregivers instant and secure access to the complete patient record anytime and anywhere, while automating everyday clinical tasks and connecting physicians to pharmacies, laboratories and other healthcare stakeholders. Additionally, Allscripts Professional EHR produces the detailed quality reports that are increasingly required by Medicare and other healthcare payers.
About Henry Schein
Henry Schein, a Fortune 500® company and a member of the NASDAQ 100® Index, is recognized for its excellent customer service and highly competitive prices. The Company’s four business groups – Dental, Medical, International and Technology – serve more than 575,000 customers worldwide, including dental practitioners and laboratories, physician practices and animal health clinics, as well as government and other institutions. The Company operates through a centralized and automated distribution network, which provides customers in more than 200 countries with a comprehensive selection of more than 90,000 national and Henry Schein private-brand products in stock, as well as more than 100,000 additional products available as special-order items.
Headquartered in Melville, N.Y., Henry Schein employs over 12,500 people and has operations or affiliates in 23 countries. The Company’s net sales reached a record $6.4 billion in 2008. Henry Schein has been ranked first in its industry for social responsibility for five consecutive years in Fortune’s list of the World’s Most Admired Companies. For more information, visit the Henry Schein Web site at www.henryschein.com.
Allscripts uses innovation technology to bring health to healthcare. More than 150,000 physicians, 700 hospitals and nearly 7,000 post-acute and homecare organizations utilize Allscripts to improve the health of their patients and their bottom line. The company’s award-winning solutions include electronic health records, electronic prescribing, revenue cycle management, practice management, document management, medication services, hospital care management, emergency department information systems and homecare automation. Allscripts is the brand name of Allscripts-Misys Healthcare Solutions, Inc. To learn more, visit www.allscripts.com.
In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate” or other comparable terms. A full discussion of our operations and financial condition, including factors that may affect our business and future prospects, is contained in documents we have filed with the SEC and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results of Henry Schein to differ materially from its current and historical results include, but are not limited to: decreased customer demand and changes in vendor credit terms; disruptions in financial markets; general economic conditions; competitive factors; changes in the healthcare industry; changes in regulatory requirements that affect us; risks associated with our international operations; fluctuations in quarterly earnings; our dependence on third parties for the manufacture and supply of our products; transitional challenges associated with acquisitions, including the failure to achieve anticipated synergies; financial risks associated with acquisitions; regulatory and litigation risks; the dependence on our continued product development, technical support and successful marketing in the technology segment; our dependence upon sales personnel and key customers; our dependence on our senior management; possible increases in the cost of shipping our products or other service issues with our third-party shippers; risks from rapid technological change; risks from potential increases in variable interest rates; possible volatility of the market price of our common stock; certain provisions in our governing documents that may discourage third-party acquisitions of us; and changes in tax legislation that affect us. The order in which these factors appear should not be construed to indicate their relative importance or priority.
Actual results of Allscripts may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause Allscripts’ actual results to differ materially from those indicated by such forward-looking statements are: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; competitive pressures including product offerings, pricing and promotional activities; the ability to establish and maintain strategic relationships; undetected errors or similar problems in its software products; compliance with existing laws, regulations and industry initiatives and future changes in laws or regulations in the healthcare industry; possible regulation of Allscripts’ software by the U.S. Food and Drug Administration; the possibility of product-related liabilities; its ability to attract and retain qualified personnel; the ability to identify and complete acquisitions, manage our growth and integrate acquisitions; the ability to recognize the benefits of the merger with Misys Healthcare Systems, LLC (“MHS”); the integration of MHS with Allscripts and the possible disruption of current plans and operations as a result thereof; the implementation and speed of acceptance of the electronic record provisions of the American Recovery and Reinvestment Act of 2009; maintaining our intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers; the ability to obtain, use or successfully integrate third-party licensed technology; breach of security by third parties; and the risk factors detailed from time to time in Allscripts’ reports filed with the Securities and Exchange Commission, including its 2007 Annual Report on Form 10-K available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements.