Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (January 2009)
22 slides from Veradigm's investor presentation, Jan 12, 2009
Slide 1: Connect to Health: Allscripts Investor Presentation – January 2009
Connect to Health™ Allscripts Investor Presentation – January 2009 EXHIBIT 99.1
Slide 2: The Story…
The Story… There is Now a Clear Market Leader… - 150,000 Physicians - 700 Hospitals - Top-Rated in All Product Categories … that is Strong and Stable - Revenue ~ $700mm - Electronic Health Records ~ $200mm - Revenue Cycle Management (Practice Management + Claims Processing) ~ $400mm - Health System
Slide 3: Why Allscripts + Misys?
Why Allscripts + Misys? › Brought two market leaders together › 110,000 + 40,000 › Perfectly positioned to win in a vibrant, growing market with a $10B market opportunity – Electronic Health Record – Revenue Cycle Management › ~$1B cross-sell opportunity within base › $20+M in cost synergies
Slide 4: A Proven Approach
2001: Form Partnership to Bring Allscripts EHR to IDX PM Base Install Base (2001) = 138,000 MDs Primarily in Larger Practices A Proven Approach Install Base (2008) = 110,000 MDs Primarily in Small-Mid Sized Practices 2008: Allscripts and Misys Come Together Bringing EHR to Misys PM Base Practice Man
Slide 5: U.S. Healthcare — Report Card
U.S HEALTHCARE — REPORT CARD Uncontrollable Spend | $2.2 Trillion @ 1/5 of GDP) Significant Waste $700 Billion (1/3 of Total Spend) Unacceptable Quality 98,000 Deaths and 1.5 Million Injuries from Medical Errors, 7,000 Deaths from Medication Errors
Slide 6: Practice Automation is Critical to the Fix…
Practice Automation is Critical to the Fix… › Increases the Quality of Care › Takes Costs Out › Increase Reimbursement › Improves Patient Safety › Increases Patient Satisfaction
Slide 7: The Path is Clear…
The Path is Clear… “We're investing in electronic medical records and other technologies that can drive down healthcare costs.” - President-elect Barack Obama “Cost savings from a mandatory requirement that Medicare providers adopt and use HIT as a condition of participating in the Medicare program…
Slide 8: The Opportunity is Significant
The Electronic Health Record Revenue Cycle Management Significant Upside › < 20% Physician Penetration › < 10% in Smaller Groups The Opportunity is Significant › ~10% to 20% of PM Systems Replaced/Yr. › Allscripts 3 Largest Claims Processing Clearinghouse + › Lower IT Penetration than Any Sector of
Slide 9: A Great Place to Start…Our Client Base
A Great Place to Start…Our Client Base › 150,000 MDs and 700+ Hospitals Across the U.S. › 90,000 MDs without an EHR › ~ $1B Cross-Sell Opportunity
Slide 10: Leadership Across the Ambulatory Market
Professional EHR + PM EDI Enterprise EHR + PM EDI Professional EHR + PM ASP-Based EHR EDI Independent Practices 1-3 physicians Small to Mid-Sized Physician Practices 4-25 Physicians Large Physician Practices 26-200+ Physicians ~40% penetration 1.3k practices 65k physicians ~10% penetration 170k prac
Slide 11: A Diversified Portfolio
Community Care Ambulatory Care Acute Care Post-Acute Care Connect Solutions • Connect Portal • Connect Messaging Services …… …… Clinical Solutions • Professional EHR • Enterprise EHR • MyWay • ePrescribe • Document Management • Medication Services • Clinical Trials • Patient Access Solutions Busines
Slide 12: Our Operating Leaders…
Our Operating Leaders… Vern Davenport President Clients: 21,000+ clients Small to mid-sized practices Employees: ~1,700 employees 160 sales reps (30 inside) Laurie McGraw President Clients: 5,000 clients Large Physicians Practices, IDNs, and Hospitals Employees: ~350 employees 35 sales reps (9 insid
Slide 13: Waves of Healthcare IT Adoption
Electronic Health Record Market Enhance the efficiency and quality of the visit Wave 2 Practice Management Market Enhance the effectiveness of the practice Wave 1 Connectivity and Information Market Enhance the health of the patient and the practices bottom line Wave 3 Waves of Healthcare IT Adoptio
Slide 14: Bloomberg of Healthcare
Bloomberg of Healthcare The Real Power Comes When You Connect
Slide 15: The Allscripts Equation
The Allscripts Equation Market Growth/Expansion Opportunity + Market Leadership + Innovation + Financial Stability = Strongest Player in an Expanding Market
Slide 16: 2009 Outlook
2009 Outlook ($ in millions - unaudited pro forma) Fiscal Fiscal Guidance Bookings $317.7 N/A Revenue $684.2 $700.0 to $715.0 Less: PI (15.0) 0.0 Adjusted Revenue $669.2 $700.0 to $715.0 Non-GAAP Net Income $62.6 $76.0 to $82.0 Less: Physicians Interactive (1.1) 0.0 Less: Synergies Timing 0.0 0.0 Le
Slide 17: Non-GAAP Net Income Potential
Non-GAAP Net Income Potential ($ in millions - unaudited pro forma) Fiscal Fiscal Earnings Before Taxes, as reported $57.5 $96.0 to $106.0 Taxes (Assumed @ 40% in 09 and 39% in 08) (22.4) ($38.0 to $45.0) Net Income $35.1 $58.0 to $64.0 Adjustments: (tax adjusted @ 40% in 09 and 39% in 08) Stock-Bas
Slide 18: Illustrative Revenue Sensitivity Analysis
20% 30% 40% 50% 60% Illustrative Revenue Sensitivity Analysis Four Year Cumulative Penetration Rates 110,000 MDs 20% Assumed EHR Penetration 88,000 Addressable EHR Market License/Service Fees $165m $248m $330m $410m $495m Annual Maintenance $20m $30m $40m $50m $60m
Slide 19: Significant and Realizable Synergy Opportunity
Significant and Realizable Synergy Opportunity › Cost synergies of $20m+, pre-tax, expected in first year following transaction close - Up to $25m to $30m, pre-tax, in annual cost savings within the next few years - Main drivers of cost synergies include: R&D, Marketing, Sales, Administrative Functi
Slide 20: Capital Structure
Capital Structure (shares in millions) Ownership % Allscripts Outstanding Shares 63.0 41.4% Allscripts Shares Issued to Misys plc 82.9 54.5% Shares Underlying Remaining Debentures 2.5 2.3% "In the Money" Options 2.4 1.5% Unvested Restricted Stock Units 0.4 0.2% Outstanding Equity as of Closing 151.1
Slide 21: Products Target Client Base
Products Target Client Base Summary a complete portfolio of solutions… for practices in all sizes/areas… a footprint of 1 of 3 MDs in the U.S.
Slide 22: Allscripts
Ay Allscripts”
Allscripts-Misys Healthcare Solutions — Investor Presentation (January 2009) on 6ix