Transaction Cements athenahealth's Entrance Into the Inpatient Hospital Market and Advances Company Progress to Connect the Care Continuum
Complementary Track Records in Cloud Innovation, Client Satisfaction, and Delivery of Clinical and Financial Results Combine to Rival Legacy Health Information Systems and EHR Offerings
WATERTOWN, Mass., Jan. 14, 2015 (GLOBE NEWSWIRE) -- athenahealth, Inc. (Nasdaq:ATHN), a leading provider of cloud-based services and mobile applications for medical groups and health systems, today announced it will acquire RazorInsights, a leader in cloud-based electronic health record (EHR) and financial solutions for rural, critical access and community hospitals. By uniting the strengths and resources of athenahealth and RazorInsights, the combined organization is positioned to introduce new cloud-based services tied to the delivery of clinical and financial results for rural, critical access and community hospitals. In addition to positioning athenahealth to serve a new segment of the health care market, athenahealth expects this acquisition to accelerate its work to advance connectedness across the care continuum.
athenahealth plans to leverage RazorInsights' inpatient expertise and award-winning technology to extend its presence into the 50-bed-and-under inpatient care environment, which accounts for approximately one-third of the U.S. hospital market. This move builds upon athenahealth's established position in the ambulatory space, where it serves more than 59,000 health care providers and has achieved Best in KLAS recognition for its revenue cycle management, EHR, and patient engagement services[i].
"Today's hospital market is woefully underserved when it comes to IT systems and IT partners that are accountable for reducing costs, increasing quality, and enabling a better patient experience," said Jonathan Bush, chairman and CEO, athenahealth. "With RazorInsights, athenahealth will immediately be injected into the inpatient care environment; this is a natural extension for our cloud-based services, will tremendously grow our network knowledge, and will accelerate our introduction of results-oriented, inpatient solutions that hospitals can confidently invest in and demand accountability from."
Like athenahealth, a company with a long-standing commitment to supporting the needs of independent physician medical groups, RazorInsights got its start serving a struggling corner of the health care industry – one with an acute need for affordable and scalable EHR options. Today, both companies offer cloud-based solutions as an alternative to on-premise software implementations, which require large upfront and ongoing expenditures to install and operate.
"In light of pressures to consolidate, and in some cases, even shut down operations, there is a large and growing market for technologies and services that enable hospitals to deliver higher levels of patient care, reduce costs, and more effectively manage care at the population level. By teaming with athenahealth, we can accelerate our common vision to help health care provider organizations of all sizes remain independent and thrive despite market challenges," said Reed Liggin, President of RazorInsights. "Since our inception, RazorInsights has focused on helping rural, critical access and community hospitals be as efficient as possible within an environment of increasing regulatory demands and workflow processes. We believe that with athenahealth, we can expand the benefits we deliver to our current customers, and together introduce a new class of services that will overcome both industry pressures and the shortcomings of traditional EHR offerings."
athenahealth expects the addition of RazorInsights to bring many advantages and synergies to complement and extend athenahealth's presence across the health care market, as well as speed the development of future solutions that can advance connectedness across all phases of the care continuum:
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Strong Customer Base – RazorInsights has deployed its solutions across 25 leading health care provider organizations and has presence in 15 states.
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Leadership in Meaningful Use Attestations – RazorInsights is among the first in the nation whose clients have achieved Stage 2 Meaningful Use--something less than 35 percent[ii] of hospitals could claim as of December 2014. RazorInsights also achieved 100 percent client attestation for Meaningful Use Stage 1.
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Complementary and Award-Winning Cloud Model – RazorInsights' cloud-based, open platform will allow athenahealth to integrate and build innovations and workflow processes to serve its growing client base. RazorInsights' EHR has been recognized on the Medical Economics Top 50 EHR list, as CIO Review's "20 Most Promising IT Vendor Solutions," and with a Fierce Innovation Award from FierceHealthcare.
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Increased Network Knowledge - By extending the reach of athenahealth's national cloud network to support new market segments, athenahealth expects to broaden its scope of network insights and domain knowledge, and thereby improve its ability to streamline operations and enhance care coordination for current and future clients, as well as enable health information to follow patients across all care settings.
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Talented Team – RazorInsights brings a dedicated, talented team whose health care knowledge and expertise has established the company as a leader in the rural, critical access and community hospital market. Located in Kennesaw, Georgia, the RazorInsights team will make a natural and complementary addition to athenahealth's growing Atlanta office.
About RazorInsights
Based in metro Atlanta, RazorInsights, a Bluff Point Associates portfolio company, is a dynamic healthcare information technology company recognized as a top 20 Most Promising Healthcare Solution and a Top 50 EHR. In keeping with the principle of Occam's Razor, it has created a simplified HIS solution for rural, critical access and community hospitals. Introducing ONE — a single-database, cloud solution offering a simple user experience with cutting-edge clinical tools and industry-standardized data. Hospitals across America use ONE to improve their performance and bottom line, which keeps local communities healthier. For more information, visit http://www.razorinsights.com.
About Bluff Point Associates
Bluff Point Associates is a private equity firm based in Westport, Connecticut. Bluff Point actively invests in middle-market information services companies supporting the banking, trust, securities, retirement and wealth management sectors of the financial services industry, as well as the healthcare information services sector.
About athenahealth, Inc.
athenahealth is a leading provider of cloud-based services for electronic health records (EHR), revenue cycle management and medical billing, patient engagement, care coordination, and population health management, as well as Epocrates and other point-of-care mobile apps. We connect care and drive meaningful, measurable results for more than 59,000 health care providers in medical practices and health systems nationwide. For more information, please visit www.athenahealth.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated benefits of the integration of RazorInsights' solutions with those of athenahealth, the nature of the prospective markets for those offerings, our progress towards advancements in care connectedness, and statements regarding changes in the health care industry and our positioning to lead such changes. The forward-looking statements in this release do not constitute guarantees of future performance. These statements are neither promises nor guarantees, and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: our fluctuating operating results; our variable sales and implementation cycles, which may result in fluctuations in our quarterly results; risks associated with the acquisition and integration of companies and new technologies to achieve expected synergies, including those related to our ability to successfully integrate the services and offerings of RazorInsights and realize the expected benefits; risks associated with our expectations regarding our ability to maintain profitability; the impact of increased sales and marketing expenditures, including whether increased expansion in revenues is attained and impacts on margins and profitability; changes in tax rates or exposure to additional tax liabilities; the highly competitive industry in which we operate and the relative immaturity of the market for our service offerings; and the evolving and complex governmental and regulatory compliance environment in which we and our clients operate. Forward-looking statements may often be identified with words such as "we expect," "we anticipate," "upcoming," "aim," or similar indications of future expectations. These statements are neither promises nor guarantees, and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances, or otherwise. For additional disclosure regarding these and other risks faced by us, please see the disclosures contained in our public filings with the Securities and Exchange Commission, available on the Investors section of our website at www.athenahealth.com and on the SEC's website at www.sec.gov.
[i] "2013 Best in KLAS Awards: Software & Services," January, 2014.© 2014 KLAS Enterprises, LLC. All rights reserved. www.KLASresearch.com
[ii] Low 2014 MU 2 Attestation Numbers Validate Need for Shortened Reporting Period in 2015. (2014, January 1). Retrieved January 1, 2014, from http://chimecentral.org/low-2014-mu-2-attestation-numbers-validate-need-shortened-reporting-period-2015/
CONTACT: Holly Spring
athenahealth, Inc. (Media)
media@athenahealth.com
617-402-1631
Dana Quattrochi
athenahealth, Inc. (Investors)
investorrelations@athenahealth.com
617-402-1329
