Business model of Allscripts

Customer Segments

Allscripts has a niche market business model, with a specialized customer segment. The company targets its offerings at Hospitals & Health Systems, Physicians & Community Practices, Retail Clinics & Pharmacies, Life Sciences Companies, Post-Acute Organizations, Insurance Firms, and Governments.

Value Proposition

Allscripts offers four primary value propositions: accessibility, convenience, performance, and brand/status.

The company creates accessibility by providing a wide variety of options. It is one of the few healthcare information technology firms that is able to provide solutions for every major healthcare setting, ranging from individual physician practices to major academic medical groups, hospitals, and post-acute organizations such as home care, hospice, and skilled nursing facilities.

Also, many of its solutions are web-based or cloud-based, enabling customers to access them through an Internet browser, or through a mobile device on an as-needed basis.

The company offers convenience by making life simpler for customers. Its Open platform facilitates multisite integration, enabling customers to take action across care teams, care sites, and multivendor electronic health record (EHR) systems. The platform also allows customers and third parties to build applications natively without requiring costly interfaces.

The company has demonstrated strong performance through tangible results. Specific examples of positive outcomes for clients include the following:

• University Health Systems’ use of Allscripts’ solutions enabled it to earn $9 million in Meaningful Use incentive funding and achieve 99.5% computerized physician order entry
• Kaleida Health’s use of Allscripts solutions enabled it to reduce supply costs by $4 million in one year and reduce overtime and shifts equivalent to 307 FTEs in nine months, saving $15 million
• Family Practice Associates’ use of Allscripts’ solutions enabled it to achieve overall net collections of 98% and enroll 20% of patients in its FollowMyHealth portal in less than one year
• Coastal Carolina Health’s use of Allscripts’ solutions enabled it to reduce emergency room visits by 10-15% in one year and reduce hospital readmissions by 10-15% in one year
• Fraser Health Authority’s use of Allscripts’ solutions gave 4,200 community users access to acute data and 18,000 acute users access to community data integrated with acute data

The company has established a powerful brand due to its success. Its products and services are used by over 45,000 physician practices, 180,000 physicians, 19,000 post-acute organizations, and 2,500 hospitals. Over 7.2 million patients are processed through its FollowMyHealth patient engagement platform. It has over 7,000 employees. Lastly, it has won many honors, including the following:

• Recognition as the #1 Ambulatory EHR Vendor by Black Book Rankings three years in a row
• Recognition as the #1 Best Global Acute EMR and KLAS Category Leader by KLAS Research
• Winner of the Best Outsourcing Partnership Award by The Outsourcing Center

Channels

Allscripts’ main channel is its direct sales team. The company promotes its offerings through its website, social media pages, and participation in forums, exhibitions, and conferences.

Customer Relationships

Allscripts’ customer relationship is primarily of a personal assistance nature. The company assists customers in the following ways:

• Support Services – The company maintains a Service Desk that provides 24/7 customer service. It also has a Services Team that offers post go-live support following system implementation for clients.
• Training Services – The company provides training on various aspects of its offerings in formats that include classroom and customized end-user training.
• Professional Services – The company provides advisory and consulting services for customers in the areas of workflow optimization, applied technologies, and best practices.

Despite this orientation, there is a self-service component. Allscripts offers clients access to training courses through an eLearning portal. It also operates the Allscripts Application Store through which customers can purchase third-party apps that can integrate with its solutions.

In addition, it publishes Continuum, a magazine that features industry insights and client success stories. Lastly, there is a community component in the form of ClientConnect, a forum where peers can interact.

Key Activities

Allscripts’ business model entails designing and developing its software solutions and maintaining and updating its platform for customers.

Key Partners

Allscripts maintains strategic partnerships with other firms designed to promote innovative healthcare solutions. Specific areas of focus include Analytics and Population Health, Care Coordination, Content and Care Guides, Device Connectivity, and Patient Engagement. Specific partners include Atos, CHMB, Elsevier, Hospital IQ, Microsoft, Nant Health, and OnBase.

Beyond these partnerships, Allscripts works with suppliers that provide it with materials it needs to produce its solutions. It also partners with third-party developers, encouraging them to design applications for its platform that can be used by its customers.

Key Resources

Allscripts’ main resource is its proprietary software platform, which serves over 7.2 million patients.  It depends on human resources in the form of engineers and developers who maintain and update the platform and design and develop its various software solutions.

Cost Structure

Allscripts has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements.

Its biggest cost driver is cost of revenue, a variable expense. Other major drivers are in the areas of sales/marketing, research/development, and administration, all fixed costs.

Revenue Streams

Allscripts has three revenue streams:

• Sales of its software, either as a perpetual license sale or under a subscription delivery model
• Sales of its support/maintenance services
• Sales of managed services such as remote hosting, outsourcing, and revenue cycle management