Allscripts Healthcare Solutions on Thursday posted a nearly 7% rise in year-over-year second-quarter revenue as it continues to refocus its business on its payer and life sciences division, Veradigm.
Chicago-based Allscripts sold its hospital and large physician practices segment, which included various electronic health records and revenue-cycle management products, to Canadian software company Constellation Software in May. The division accounted for $927.6 million of Allscripts’ $1.5 billion in full-year 2021 revenue, but revenue for the division had dropped from a year earlier. Veradigm’s 2021 revenue was $552.2 million, up 4.6% from 2020.
Allscripts has said it would use proceeds from the sale on share repurchases and acquisitions to support Veradigm.
Allscripts is looking at acquisitions that expand the company’s payer and life sciences work “to balance out what’s still a provider-centricity that we have,” Allscripts’ CEO Rick Poulton said Thursday on a call with investment analysts. That “would be top of the list strategically for me.”
Poulton took the helm of Allscripts in early May after the company’s long-time CEO, Paul Black, who had led Allscripts since 2012, stepped down.
Veradigm, a division Allscripts launched in 2018 to sell data and analytics tools that link providers with payers and life sciences companies, is expanding its products for health insurers and providers in areas such as risk analytics and reporting, identifying care gaps, and claims submissions, Poulton said.
The division has about 80,000 physician customers who use its clinical, financial and patient-engagement products.
Allscripts reported $150.9 million in revenue for 2022’s second quarter, up 6.9% from the year-ago period. Veradigm contributed $144.6 million in revenue, up 8.4% year-over-year.
The company posted a $5.4 million operating loss for the quarter, compared with $16.8 million in operating income a year ago.
Allscripts reported a $64.1 million net loss, compared with net income of $21.9 million in last year’s second quarter last year.
The results included $21 million in transaction costs. The company reported an after-tax loss of $67.3 million on the sale of the hospital and large physician practices division, because of legal costs and tax provisions, according to Leah Jones, chief financial officer.
Veradigm’s operating income was $24 million, up 33.3%.
Allscripts on Thursday reaffirmed its prior revenue outlook for 2022, forecasting that Veradigm’s revenue will grow 6-7%.