Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (July 2009)
27 slides from Veradigm's investor presentation, Jul 22, 2009
Slide 1: Connect to Health Allscripts Investor Presentation – July 2009
Connect to Health™ Allscripts Investor Presentation – July 2009 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company’s future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or proj
Slide 3: 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 Solutions ~ $1
Slide 4: U.S. Healthcare — Report Card
U.S HEALTHCARE — REPORT CARD Uncontrollable Spend | $2.2 Trillion © US 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 5: Practice Automation is Critical to the Fix…
Practice Automation is Critical to the Fix… › Increases the Quality of Care › Takes Costs Out › Increases Reimbursement › Improves Patient Safety › Increases Patient Satisfaction
Slide 6: 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 Barack Obama “Cost savings from a mandatory requirement that Medicare providers adopt and use HIT as a condition of participating in the Medicare program…saving
Slide 7: $46+ Billion New Reasons To Adopt NOW
$46+ Billion New Reasons To Adopt NOW $46 billion + $2 billion = $48 billion Physician Incentives Incentive Bonuses from Medicare/Medicaid HHS Discretionary Funds Potential Areas Include: Standards Development, Grants (AHRQ, HRSA, CMS), HIE Infrastructure, Loans to the States for EHR, Regional HIT R
Slide 8: The Time is Now
The Time is Now › Funding is Front Loaded $30,000 (close to 70% of the funding) comes in the first two years › You Need to Demonstrate Meaningful Utilization Purchase and Implementation are not enough - you must use it › Funding is Time Stamped Incentives start in 2011, decrease over time and penalt
Slide 9: Wealth of Federal Incentives Available
EHR Stimulus Funding PQRI Incentive ePrescribe Incentive $44,000 (or $64,000) over 5 yrs. + $3,000 - $5,000/yr. estimate The incentive per physician . . . + $3,000-5,000/yr. estimate PQRI = Physician Quality Reporting Initiative Wealth of Federal Incentives Available
Slide 10: Practice Size, Number of Practices and EHR Penetration
Practice Size Total # of Practices EHR Penetration (FY08/09) Addressable Market TRUE NORTH Impact on EHR Adoption 1-3 Physicians 163,000 ~10% 4-9 Physician 27,000 ~20% 10-25 Physicians 8,000 ~25% 26+ Physicians 2,000 ~40% Total 200,000 ~12% Source: SK&A = SK&A Information Services which sells databa
Slide 11: 70% of funding gone by 2013, so the rush is on
70% of funding gone by 2013, so the rush is on 90% overall Physician adoption by 2019, per CBO True North: Current Market Landscape / Projections • 70% of funding will be gone by 2013 • The key is driving market penetration (not just share) in the next 2-3 years • EHR adoption w/ Stimulus is estimat
Slide 12: 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 13: Our Client Base: A Great Place to Start…
› 150,000 MDs and 700+ Hospitals Across the U.S. › 90,000 MDs without an EHR › ~ $1B Cross-Sell Opportunity A Great Place to Start … Our Client Base
Slide 14: Why Allscripts Wins
Why Allscripts Wins › Significant Footprint: 150,000 MDs, 700 Hospitals, 6,000 Post Acute Facilities, 600 Homecare Agencies › All Sizes and Settings: Ambulatory and Acute, Primary Care and Specialty, Small to Large › Diversified Portfolio: Clinical and Business Solutions › All World-Class: Top Rated
Slide 15: A Comprehensive Portfolio
Includes: • ePrescribe • Connect • Payerpath • Document Management For physicians not yet ready for an EHR Includes Connected Physician, plus: Enterprise and/or Professional EHR/ PM with connections to commercial labs and imaging centers For physicians ready to become “Operable” Includes Connected E
Slide 16: The Time is Now
The Time is Now › Funding is Front Loaded $30,000 (close to 70% of the funding) comes in the first two years › You Need to Demonstrate Meaningful Utilization Purchase and Implementation are not enough - you must use it › Funding is Time Stamped Incentives start in 2011, decrease over time and penalt
Slide 17: A Simple Approach
A Simple Approach Get it Certified Get it Connected Get it Cool Get it Sold Get it Used
Slide 18: New Innovations Overview
New Innovations Overview
Slide 19: The Allscripts Equation
The Allscripts Equation Market Growth/Expansion Opportunity + Market Leadership + Innovation + Financial Stability = Strongest Player in an Expanding Market
Slide 20: Financial Overview
Financial Overview
Slide 21: 2009 Operating Margin Growth
2009 Operating Margin Growth Fiscal 2008 (1) Fiscal 2009 Bookings $317.6 $334.7 SaaS % 8% 30% Revenue (2) $669.3 $680.6 Less Prepackaged Medications (41.9) (29.7) Clinical Software Revenue $627.4 $650.9 Non GAAP Net Income (3) $61.5 $78.1 Less Prepackaged Medications (2.1) (1.4) Adjusted Non GAAP Ne
Slide 22: 2010 Outlook
2010 Outlook Fiscal 2009 Fiscal 2010 Bookings $334.7 N/A SaaS % 30% Revenue $650.9 $680.0 to $700.0 Non GAAP Net Income $76.7 $88.0 to $92.0 Non GAAP Net Income per Share $0.52 $0.59 to $0.61 Proforma Share Count (1) 148.2 150.0 (1) Q4 FY 2009 share count has been used for the Fiscal 2009 denominato
Slide 23: US GAAP Net Income to Non GAAP Net Income Reconciliation
US GAAP Net Income to Non GAAP Net Income Reconciliation Fiscal 2009 Fiscal 2010 (Estimated) Earnings Before Taxes $44.4 $101.2 to $107.9 Taxes (Assumed 41% in 09 and 40% in 10) (18.4) (40.5 to 43.1) Net Income $26.0 $60.7 to $64.7 Adjustments (Tax adjusted 41% in 09 and 39% in 10) Allscripts Pre Me
Slide 24: 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 25: 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 Functions Re
Slide 26: Products Target Client Base Summary
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 27: Allscripts
Allscripts :
Allscripts-Misys Healthcare Solutions — Investor Presentation (July 2009) on 6ix