94. allscripts part 3
- 1. H.I.S.-tory by Vince Ciotti Episode #93: Allscripts Part 3 © 2013 by H.I.S. Professionals, LLC, all rights reserved. + =
- 2. It’s All in the Script! • We left off last week with Eclipsys gobbling up half the firms in the industry, so it’s only fair what happened to them in 2010: “Allscripts announced this morning that it will acquire Eclipsys for $1.3 billion in an all-stock transaction. Misys PLC, the 55% owner of Allscripts, also announced that it will sell most of its interest in the company… reducing its holdings to less than 10% of the merged companies.” • So what is the HIS-tory of Allscripts and their partner Misys/Medic? Hold on to your mouse, as these firms themselves were formed by a bewildering maze of mergers and acquisitions that stretch ppt limits:
- 3. Way back in 1986… • Allscripts originally got its start in 1986 by selling prepackaged meds for physicians to dispense right in their practices. • The idea caught on very well, and the company later unveiled its first software product, an e-prescribing system, in 1998, beating one of today’s MU requirements by over a decade! • However, neither the meds nor the e-prescribing would have ever earned them enough dough to acquire Eclipsys for over $1B. That capital was earned by another complex name in HIS-tory: MISYS. • Misys was a UK-based firm that was originally dominant in banking & manufacturing in Europe and bought its way into the US healthcare market, much like Ferranti (episode #64 at hispros.com).
- 4. Medic Computer Systems • Misys set its US sights on Medic, itself a conglomerate that was originally was founded in 1982, offering practice management (PM) systems first to small physician practices (avoiding IDX’ dominance of large practices). At its peak, Medic Computer Systems claimed installations across the country serving 70,000 physicians in more than 12,000 locations. In addition to its “Vision” system, which ran on IBM RS/6000 “RISC” minis, Medic also offered practice management solutions via MEDIC “Tiger,” MEDIC “PM,” as well as clinical solutions with AutoChart. These systems were developed or came from a number of vendor acquisitions including: – Home Care Information Systems (HCIS), from NJ, one of the first laptop PC-based Home Health Care systems. – Elcomp Systems in 1994, from Pittsburgh, PA, for ≈$5 million. – Script Systems in 1995 from Princeton, NJ , for ≈$3 million. • Plus Elco, National Medical, Compudata, CompuSystems, etc.
- 5. Mega-Merger • So it was pretty big news when early in “1997 Misys and Medic Computer $922.8 Million Merger” was announced: – “Misys P.L.C., a large British software company, said yesterday that it had agreed to acquire Medic Computer Systems Inc., a leading maker of software for automating physicians' billing and patient records, for $922.8 million in cash, or $35 a share. – Medic has flourished by concentrating on systems used in managing physician group practices. These systems, though typically smaller than hospital installations, are considered an easier sell because many of the doctors groups have not previously invested in big computers and proprietary software. – Based in Raleigh, N.C., Medic has more than 1,400 employees. In the quarter ended June 30, the company earned $6.2 million, or 24 cents a share, on revenue of $60.3 million.”
- 6. But Wait, There’s More! • If you’re getting confused, don’t blame me, I’m just the messenger. The combined firm was known as Misys Healthcare in the US, and needless to say, they acquired many firms, including A4 in 2006: – Remember Skip Shippee’s“MSA” (Management Systems of America, not Management Sciences of America – the ERP giant) – They built one of the first mini-based HIS systems on Microdata boxes, another UK firm that McAuto eventually got the rights to to make their Mini-based Hospital System (MHS) around 1980. – MHS didn’t sell too well, and MSA got the rights to their system back, eventually selling out to the employees in as “ESOP” with the creative name of A4 (All the systems, all the time, etc.). – A4 acquired its “Healthmatics” EMR from pharma giant Glaxo, as well as its practice management system for small to medium- sized practices. It also bought a leader in a red-hot niche today: • EmSTAT’s emergency dept. information systems (EDIS).
- 7. The sun sets, and rises… • Now this pun should knock you out: in 2001, Misys bought LIS giant Sunquest, who along with SCC Soft ruled that niche after Cerner moved into HIS/EMRs. In 2007, Misys sold Sunquest back, followed by its huge 2008 deal: “Allscripts & Misys Announce Merger - In a deal estimated to affect more than 150,000 U.S. physicians and 700 hospitals, Allscripts and Misys Healthcare have announced a merger, giving British-based Misys Plc a 54.5 percent stake in the combined company, in which Raleigh, NC- based Misys Healthcare will be folded into a wholly owned subsidiary of Allscripts.” - So what’s so punny about Misys buying & selling Sunquest just before the merger? Just think of the name of Eclipsys’ EMR… (after these convoluted buys & sells, it will be a pleasure next week to start on a vendor with a singleproduct, never bought or sold!)
- 8. Picture’s Worth a Thousand Words? • Not sure just how many words were in the last 3 weeks episodes on Allscripts (too many?), but here’s the origin of their products: • Took you 2 minutes (seconds?) to read it, took me 2 hours to build it!