Allscripts Healthcare Solutions Inc. (MDRX – Analyst Report) recently announced that its new Chronic Care Management (CCM) program was selected by Casselberry, FL-based CFP Physicians Group to improve care for chronically ill patients.
Allscripts’ CCM program aims at improving care management and outcome for patients suffering from multiple chronic conditions. It also aims to assist physician practices to meet the Centers for Medicare and Medicaid Services’ (CMS) CCM reimbursement revenue requirements.
By implementing Allscripts’ CCM program, CFP Physicians Group plans to participate in the CMS CCM Reimbursement model. The program will allow the health care practice to meet the requirements for reimbursement, which includes patient outreach through care management protocols, medication management, as well as offering a minimum 20-minute out-of-office care management services via phone or digital coverage every month.
We feel that by leveraging the CCM services provided by Allscripts, CFP Physicians Group will benefit from outsourcing the infrastructure, compliance and workflows needed to meet CMS reimbursement requirements. This will not only help them to increase appointment volumes and practice revenue, but also overcome the inherent challenges of building a CCM infrastructure without assistance.
By offering the flexibility of a fully scalable program, Allscripts enables the practices to enjoy faster and larger opportunities for additional reimbursement revenue generation. As the services offered by Allscripts are gaining popularity among hospitals and health systems, we believe that it will enhance the company’s top-line growth opportunities.
It should also enhance visibility of the company’s wide range of services, which, in turn, will drive demand for its other offerings. We note that the company’s Electronic Health Record (EHR) offerings are already quite popular among healthcare providers and hospitals as reflected by regular contract wins and addition of new domestic and international clients.
We believe that such strategic opportunities will help drive Allscripts’ dwindling top line, which is a potent headwind for the company at present. Moreover, Allscripts has to counter stiff competition and face sluggishness in the international market, which adds to our concerns.
Stocks to Consider
Currently, Allscripts carries a Zacks Rank #3 (Hold). Better-ranked stocks include athenahealth (ATHN – Analyst Report) and Merge Healthcare (MRGE – Analyst Report) in the medical information industry and SurModics Inc (SRDX – Analyst Report) in the broader medical industry. While SurModics sports a Zacks Rank #1 (Strong Buy), both athenahealth and Merge Healthcare carry a Zacks Rank #2 (Buy).
