AllScripts - Misys Merger Investment analysis

Implications: Short term pain long term gain? In my opinion, only within the sphere of Misys existing clients. Neither Misys nor Allscripts have been very good at marketing to non-customers.

Analysis: This may cease the erosion of Misys Practice Management (PM) clients to other vendor's Electronic Medical Record products (EMR). I don't see this as upside potential to create a major player in this market. Allscripts had benefited from their marketing relationship with IDX, which went south when GE purchased IDX and that EMR activity went to Centricity. That was a harbinger of Allscripts problems. Allscripts then purchased A4 and proved they didn't have the strength to market to the larger Physician practices. Now they hope to woo investors with additional sales to Misys' existing customers.

The real indicator to watch for when monitoring this new company is how many sales are from outside the existing base of customers. If new sales growth is limited or non-existent, then invest your money elsewhere. Quality Systems' NextGen, GE Centricity and McKesson all have better prospects for growth.