Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (April 2009)
23 slides from Veradigm's investor presentation, Apr 24, 2009
Slide 1: Connect to Health: Allscripts Investor Presentation – April 2009
Connect to Health™ Allscripts Investor Presentation – April 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: 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 4: 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 5: 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 6: $19 Billion New Reasons To Adopt NOW
$19 Billion New Reasons To Adopt NOW $17 billion + $2 billion = $19 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 Re
Slide 7: Wealth of Federal Incentives Available
EHR Stimulus Funding PQRI Incentive ePrescribe Incentive If you start now . . . $44,000 over 5 yrs. + $3,000 - $5,000/yr. estimate + $3,000-5,000/yr. estimate PQRI = Physician Quality Reporting Initiative Wealth of Federal Incentives Available
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: 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 10: 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 11: A Comprehensive Portfolio
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 “Oper
Slide 12: The Time is Now
The Time is Now › Funding is Front Loaded – $30,000 (close to 70% of the funding) comes in the first two years › You Need to Demonstrate Meaningful Utilization – Purchase and Implementation are not enough - you must use it › Funding is Time Stamped – Incentives start in 2011, decrease over time and
Slide 13: A Simple Approach
A Simple Approach Get it Certified Get it Connected Get it Cool Get it Sold Get it Used
Slide 14: New Innovations Overview
New Innovations Overview
Slide 15: The Allscripts Equation
The Allscripts Equation Market Growth/Expansion Opportunity + Market Leadership + Innovation + Financial Stability = Strongest Player in an Expanding Market
Slide 16: Financial Overview
Financial Overview
Slide 17: 2009 Outlook
2009 Outlook ($ in millions unaudited pro forma) Fiscal Fiscal Guidance Bookings $317.7 N/A Revenue $684.2 $675.0 to $680.0 Less: Prepackaged Meds (1) (41.9) (40.0) Clinical Software Revenue $642.3 $635.0 to $640.0 Adjusted Earnings $61.5 $76.0 to $82.0 Less: Prepackaged Meds (3.3) (3.2) Clinical So
Slide 18: Non-GAAP Net Income Potential
Non-GAAP Net Income Potential ($ 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-Based C
Slide 19: 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 20: 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 21: Capital Structure
Capital Structure (Shares in millions) Ownership % Allscripts Outstanding Shares 63.0 41.7% Allscripts Shares Issued to Misys PLC 82.9 54.9% Shares Underlying Remaining Debentures 2.5 1.7% "In the Money" Options 2.4 1.6% Unvested Restricted Stock Units 0.3 0.2% Outstanding Equity as of Closing 151.1
Slide 22: Products Target Client Base
Products Target Client Base Summary a complete portfolio of solutions… for practices in all sizes/areas… a footprint of of MDs in the U.S.
Slide 23: Allscripts
Allscripts™
Allscripts-Misys Healthcare Solutions — Investor Presentation (April 2009) on 6ix