3rd-quarter earnings down for Allscripts, Cerner, Meditech

Allscripts, Cerner and Meditech all reported third-quarter 2020 revenue dips linked to the pandemic in recent financial reports. Here’s how the three EHR vendors fared:

Allscripts reported $402 million in revenue for the third quarter of 2020, down 9.5 percent from $444 million during the same time period last year.

In an Oct. 29 news release, Allscripts CEO Paul Black said the “typically seasonally weaker third quarter was impacted by challenges related to the ongoing pandemic,” but  the company’s margin improvement initiatives helped increase earnings and cash flow.

Cerner posted $1.37 billion in revenue for the third quarter, down 3 percent from $1.43 billion during the same time last year. The company’s net earnings for the quarter increased at $356.7 million, up from $81.9 million during the third quarter of 2019.

Cerner said the revenue decline compared to the third quarter of 2019 was primarily the result of the COVID-19 pandemic andCerner’s exit from its revenue cycle outsourcing contract with Adventist in the fourth quarter of 2019.

Meditech reported $114.7 million in revenue for the third quarter, down 5.3 percent from $121.2 million during the same time last year. The company’s product revenue for the quarter came in at $27.4 million, down 29.7 percent from $39 million during the same time last year. Service revenue for the quarter increased 6.6 percent to $87.4 million, up from $82.2 million during the same time last year. 

Meditech attributed the decrease in product revenue primarily to implementation delays caused by the COVID-19 pandemic and said the uptick in service revenue stems from more customers going live with its software and providing more services. 

More articles on EHRs: 
Cerner in the headlines — 7 latest stories 
HHS extends interoperability rule deadlines: 10 key compliance dates  
25 key updates on Allscripts, Cerner, Epic, Meditech 


© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.