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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 18, 2006
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-32085 | 36-4392754 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
222 Merchandise Mart, Suite 2024
Chicago, IL 60654
Registrant’s telephone number, including area code (800) 654-0889.
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01. | Regulation FD Disclosure. |
Attached as Exhibit 99.1 through 99.7 hereto represents material presented at an Investor Day Presentation dated October 2006 which is incorporated herein by reference.
This information is being furnished pursuant to Item 7.01 of this Report and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and will not be incorporated by reference into any registration statement filed by Allscripts Healthcare Solutions, Inc. under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference. This Report will not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD.
Allscripts reports its financial results in accordance with generally accepted accounting principles (“GAAP”). In addition, the Company reports on non-GAAP financial measures, such as cash earnings and cash earnings per share. Management believes that these non-GAAP measures, when viewed in addition to the Company’s reported GAAP results, provide useful information to investors regarding its performance and overall results of operations. Please refer to page 31 of Exhibit 99.1 for a reconciliation to comparable GAAP measures.
Please refer to page 2 of Exhibit 99.1 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.
| ITEM 9.01. | Financial Statements, Pro Forma Financial Information and Exhibits. |
| (d) | Exhibits: |
| 99.1 | Investor Presentation dated October 2006 | |
| 99.2 | 2006 Allscripts Investor Day dated October 2006 | |
| 99.3 | The Economic Return of an EHR dated October 2006 | |
| 99.4 | Enterprise Wide EHR Deployment dated October 2006 | |
| 99.5 | The EHR in a Small Practice dated October 2006 | |
| 99.6 | Product Roadmap dated October 2006 | |
| 99.7 | Investor Day 2006 Agenda | |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. | ||||||||
| Date: October 18, 2006 | By: | /S/ WILLIAM J. DAVIS | ||||||
| William J. Davis Chief Financial Officer | ||||||||
3
EXHIBIT INDEX
The following exhibits are filed herewith:
| Exhibit No. |
||
| 99.1 | Investor Presentation dated October 2006. | |
| 99.2 | 2006 Allscripts Investor Day dated October 2006 | |
| 99.3 | The Economic Return of an EHR dated October 2006 | |
| 99.4 | Enterprise Wide EHR Deployment dated October 2006 | |
| 99.5 | The EHR in a Small Practice dated October 2006 | |
| 99.6 | Product Roadmap dated October 2006 | |
| 99.7 | Investor Day 2006 Agenda | |
 Exhibit 99.1 |
 2 Today’s presentations may contain forward-looking statements about Allscripts Healthcare Solutions that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts’ beliefs and assumptions. Forward-looking statements do not guarantee future performance. Because Allscripts cannot predict all of the risks and uncertainties that may affect it, or control the ones it does predict, Allscripts’ actual results may be materially different from the results expressed in its forward-looking statements. Allscripts undertakes no obligation to update such forward- looking statements except when required by law. For a more complete discussion of the risks, uncertainties and assumptions that may affect Allscripts, see the Company's Annual Report on Form 10-K for the year ended December 31, 2005, and recent Form 10-Q1; available at www.sec.gov or on our website at www.allscript.com. Safe Harbor |
 3 Financial Overview Bill Davis Chief Financial Officer |
 4 Top 10 Questions 1. How Did Allscripts Do in the Third Quarter? 4 |
 5 Q3 Performance We will be announcing Q3 results on Thursday, October 26th after the close of the market Grant Thornton currently completing their review Audit of revenue 5 |
 6 Top 10 Questions 2. How Does Allscripts Size the EHR Market? 6 |
 7 Ambulatory EHR market is ~$5+ billion opportunity ~ 550,000 U.S. Physicians X 76% EHR market opportunity X ~$12,500 initial investment per physician = ~$5 billion opportunity Practice management solutions provide complementary product offering with significant incremental market opportunity ~10% to 20% of PM market being replaced each year PM market ~ $1 to $2 billion per year The EHR Market |
 8 Health Affairs Study 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% < 5 MDs 6-10 MDs 11-20 MDs 21+ MDs Implementation in process Fully implemented |
 9 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% < 5 MDs 6-10 MDs 11-20 MDs 21+ MDs Health Affairs Study If you combine “fully implemented” and “implementation in process” you have a total % that have bought an EHR 2,800+ survey responses w/ 700+ telephone surveys Results are consistent with other research in this area Implementation in next 24 months Implementation in process Fully implemented |
 10 Top 10 Questions 3. What Impact Does the Renegotiated Agreement with IDX/GE Have on Allscripts’ Business? 10 |
 11 IDX/GE Impact Increased sales into IDX base since GE announcement in Q3 2005 EHR leads buying decisions, not PM Reference sites are critical One of every five IDX clients is an Allscripts client One reference site = two year proposition Royalty to IDX from 20% to 10% to 0% Cooperation on interface extended to 2012 Novant agreement extends to June 2016 11 “Physician groups choose Allscripts because of the referencable customer base, leading product, and a successful implementation track record, not because of a piece of paper signed 5 years ago.”
|
 12 Top 10 Questions 4. What Impact Will Stark Law Changes Have on Allscripts and the Market as a Whole? 12 |
 13 Stark/Anti-Kickback Overview You can’t do this… Anti-Kickback – I can’t give you something (a kickback) for referring patients to me or my facility On second thought… eRx – A hospital (sponsor) can now fund 100% of eRx (software, hardware, implementation, training, etc.) EHR – A hospital (sponsor) can now fund up to 85% of EHR (software, implementation, training, but not hardware) A new source of funding A new sales channel |
 14 Stark/Anti-Kickback Overview More reasons to move now! When they begin to move they… Look at ambulatory systems Look at what works Look at what physicians want…and they want Allscripts |
 15 All Patients/ Consumers in the Region 160 MD Groups 80 MD Groups Stark/Anti-Kickback: Unique Opportunity for Allscripts 40 MD Groups Only Allscripts Can Deliver Either Stand-Alone or Integrated… Personal Health Record Community Portal/Exchange Electronic Health Record e-Prescribing |
 16 Top 10 Questions 5. Is There Seasonality in Your Bookings? What About Revenue? 16 |
 17 Seasonality Short answer is yes… Clinical Software Business 35% of our bookings historically have occurred in Q4. Remaining 65% tends to be evenly distributed over first three quarters TouchWorks revenue largely insulated from seasonality due to revenue recognition policy. HealthMatics less insulated due to more traditional software revenue recognition policy Medication Distribution Business Seasonality largely a function of when people are more likely to be sick (Winter months) and distribution of flu vaccine (Q3 and Q4) Physicians Interactive Business Moderate amount of seasonality tied to large pharma budgeting process.
Less prominent than in Clinical Software Business |
 18 Top 10 Questions 6. Speaking of Revenue, Why Does Allscripts Have Different Revenue Recognition Policies for HealthMatics (A4 Ambulatory) and TouchWorks? 18 |
 19 Revenue Recognition HealthMatics Services we provide are deemed not “essential” to the software Average installation ~ 1 to 3 months We recognize software fees upon installation of the software, and service fees as services are provided 19 TouchWorks Services we provide are deemed to be “essential” to the software Average installation ~ 9 to 12 months We recognize both service and software fees on % of completion basis over implementation period |
 20 TouchWorks Example (2,000 Implementation hours) Q2 ’06 500 hours are worked 500 / 2,000 or 25% x $1.0 million = $250,000 Revenue Recognition $1,000,000 $300,000 Service $700,000 Software HealthMatics Example Q2 ’06 Software installed and 50% of hours completed $170,000 + (30,000 x 50%) = $185,000 20 $200,000 $30,000 Service $170,000 Software |
 21 Diversified Backlog Provides Stability and Strong Visibility As of 6/30/06 ($ in Millions) As of 6/30/06 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $167.9 Million $87.9 $87.9 $27.0 $27.0 $13.3 $13.3 $39.7 $39.7 Clinical Software Maintenance Support Information Services Clinical Software Subscriptions Clinical Software License/ Implementation Fees Medication revenue and maintenance support beyond 1 year provides incremental visibility |
 22 Top 10 Questions 7. Are the Medication and Acute (ED and Canopy) Businesses Strategic to Allscripts? 22 |
 23 Medication Business Continue to view as low growth business With that said… Consistently delivers $44 to $45 million of profitable revenue ~ 10% operating margins Affords us an opportunity to invest back into growth businesses Motivated to “grow out of it” as quickly as possible Renewed interest in medications dispensing “Retailing” of healthcare Strongest pipeline in years 23 |
 24 E H R E H R Acute Businesses Our Solutions Ensure Continuity of Care Hospital Hospital Emergency Department (ED) Emergency Department (ED) Care Management Care Management INFORMATION INFORMATION |
 25 Top 10 Questions 8. When Is Allscripts Going to Provide Guidance for 2007? 25 |
 26 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 $280 $300 $320 2004 2005 2006(E) 2007(E) $100.8 $120.6 $220.0 $300.0 Pre-packaged Medications Information Services Clinical Software and Related Services * Growth segments include Clinical Software and Related Services and Information Services Growth Segments ($ in Millions) |
 27 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 2004 2005 2006(E) 2007(E) Solid Bookings Growth Information Services Clinical Software and Related Services $65.9 $89.5 $170.0 $240.0 ($ in Millions) |
 28 28 Accelerated Growth Continues in 2007 2005 2006 (E) 2007 (E) Revenues: Software & Related Services $65.2 $165.0 $240.0 Prepackaged Medications 45.6 43.0 44.0 Information Services 9.8 12.0 16.0 Total Revenues $120.6 $220.0 $300.0 Gross Profit 54.9 115.0 159.0 Gross Profit % 45.5% 52.3% 53.0% Income from Operations 9.2 19.0 41.0 Net Income $6.0 $11.3 $25.0 Weighted Average Shares Outstanding (Diluted) 43.1 54.0 64.0 Earnings per Share (Diluted) $0.14 (1) $0.20 to $0.22 $0.42 to $0.44 (1) 2005 has been adjusted for income taxes to provide for comparability: $9.7 MM Net Income, or $0.23 per diluted share, as reported less 38% taxes ($3.7 MM) = $6.0 MM, or $0.14
per diluted share ($ in Millions, except per share) |
 29 Impact of Convertible Debt (for illustrative purposes only) ($ in Millions, except per share) Non-Converted Converted Non-Converted Converted GAAP Net Income $11.3 $11.3 $25.0 $25.0 Adjustments: Add Back Interest Expense 3.5 3.5 Tax Effect of Interest Add-back @ 38% (1.3) (1.3) Adjusted GAAP Net Income $11.3 $13.5 $25.0 $27.2 Diluted Shares Outstanding 54.0 54.0 56.7 56.7 Add: Convertible Debt Shares 7.3 7.3 Adjusted Diluted Shares 54.0 61.3 56.7 64.0 GAAP Earnings Per Share $0.21 $0.22 $0.44 $0.43 Convertible Debt Convertible Debt Anti-dilutive Dilutive in 2007 in 2006 2007 2006 |
 30 Top 10 Questions 9. Is Allscripts Going to Use a “Non-GAAP” Earnings Metric in 2007? |
 31 2007 Earnings Metrics Cash Earnings ($ in Millions, except per share) 2005 2006 (E) 2007 (E) GAAP Net Income $9.7 $11.0 $25.0 Depreciation and Amortization 6.5 16.5 17.5 Income Taxes 0.0 7.0 16.0 Stock-Based Compensation 0.6 2.5 6.4 A4 One-Time Deal-Related Cost 0.0 1.0 0.0 Cash Earnings 16.8 38.1 64.9 Weighted Average Shares Outstanding (Diluted) 43.1 54.0 64.0 GAAP Earnings Per Share (Diluted) $0.23 $0.20 to $0.22 $0.42 to $0.44 Cash Earnings Per Share (Diluted) $0.39 $0.70 to $0.72 $1.04 to $1.06 |
 32 2007 Earnings Metrics Adjusted Earnings ($ in Millions, except per share) 2005 2006 (E) 2007 (E) GAAP Net Income $9.7 $11.0 $25.0 Income Tax Provision @ 38% ($3.7) $0.0 $0.0 Acquisition-Related Amortization, net of taxes @ 38% $0.4 $6.4 $6.4 Stock-Based Compensation, net of taxes @ 38% $0.3 $1.6 $4.0 Adjusted Earnings $6.7 $19.0 $35.4 Weighted Average Shares Outstanding (Diluted) 43.1 54.0 64.0 GAAP Earnings Per Share (Diluted) $0.23 $0.20 to $0.22 $0.42 to $0.44 Adjusted Earnings Per Share (Diluted) $0.16 $0.34 to $0.36 $0.58 to $0.60 |
 33 Top 10 Questions 33 10. What Is the Ongoing Operating Model for Each of Allscripts’ Businesses? |
 34 Business Operating Models Medication Services Annual revenue growth expected flat to low single digits Gross margin of 18% to 20% of revenue OI margin of 8% to 10% of revenue (1) Clinical Solutions Annual revenue growth of approximately 35%+ Gross margin of 58% to 62% of revenue OI margin of 20% to 22% of revenue (1) Physicians Interactive™ Annual revenue growth of approximately 25%+ Gross margin of 45% to 50%of revenue OI Margin of 10% to 15% of revenue (1) (1) Reflects fully burdened operating expenses |
 |
 1 Glen Tullman Chief Executive Officer Allscripts Inform. Connect. Transform. Exhibit 99.2 |
 2 900+ Employees Financially Strong (Nasdaq: MDRX) Established Leader in Ambulatory Healthcare IT Market: Electronic Health Records e-Prescribing Document Imaging Practice Management Connectivity Solutions Three Business Groups Clinical Solutions Group Physicians Interactive Group Medication Solutions Group About Allscripts The Leading Provider of Clinical Software, Connectivity & Information Solutions to Physicians |
 3 Our View Healthcare Revolves Around the Physician A Different Approach Traditional View Healthcare Revolves Around the Hospital |
 4 Our Solutions: World-Class Industry-Leading Technologies Our Ability To Deliver Results: Rapid Deployment & ROI Our Footprint: Significant Installed Base / Strong Reference Sites Our Partners: Strong Partnerships and Strategic Alliances Our People: Experienced Employees Who Care Hard To Replicate Competitive Strengths |
 5 Becoming Indispensable for Physicians |
 6 It’s Happening, Right Now: Allscripts Across the U.S. Electronic Health Record Clients Document Imaging Clients Practice Management Clients |
 7 Healthcare is Broken We Can Do Better Physicians at the Center Technology is the Key Four Assumptions |
 8 • Not Used Costs and Waste Represent the Problem and the Opportunity • Best Software • Best Information • Best Pharmaceuticals • Best Healthcare • Best Physicians • Not Available • Buried With Paperwork • Can’t Afford • Not Available to 40MM The Paradox of Healthcare |
 9 2004 2014 16% 22% $1.8 $3.5 The U.S. is No.1 in the world in healthcare expenditures, but no better than 16 th in medical outcomes. ($ in Trillions) (% of GDP) U.S. Healthcare Costs Higher Costs, Lower Quality |
 10 The Current State-of-the-Art? “It was just common sense. A local Blues Plan sent brown paper bags to its members. The idea was for them to put all their prescription drugs, over- the-counter medications and herbal supplements in it. People then took the bags to their doctors….” - Ad in New York Times, 1//05 |
 11 We Can Do Better . . . Why Not the Best? R E S U L T S F R O M A N A T I O N A L S C O R E C A R D O N U . S . H E A L T H S Y S T E M P E R F O R M A N C E The Commonwealth Fund Commission on a High Performance Health System September 2006 ABSTRACT: Created by the Commonwealth Fund Commission on a High Performance Health System, the National Scorecard on U.S. Health System Performance is the first-ever comprehensive means of measuring and monitoring health care outcomes, quality, access, efficiency, and equity in one report. Its findings indicate that America’s health system falls far short of what is attainable, especially given the resources the nation invests. Across 37 indicators of performance, the U.S. achieves an overall score of 66 out of a possible 100 when comparing actual national performance to achievable benchmarks. |
 12 The Stethoscope London Times 1834 “That it will ever come into general use, notwithstanding its value, is extremely doubtful because its beneficial application requires much time and gives a good bit of trouble, both to the patient and to the practitioner because its hue and character are foreign and opposed to all our habits and associations.” Will The Industry Adopt The EHR? |
 13 We “Wrote the Book” on EHRs Our Expertise |
 14 Generates Clinical Trial Revenue Holston Medical Group $3M/Yr. in Clinical Trial Revenue Delivers on Pay for Performance Facey Medical $1.2M P4P Payout from Blue Cross Produces
e-Prescribing Savings Sierra Health $5M in Annual Savings via eRx Reduces Resources in Medical Records George Washington Univ. Medical Faculty associates Reduction of 30 FTEs in Medical Records Enhances Documentation University of Tennessee Medical Group Avg. Gross Charge Increases of > $30/Patient Visit Reduces/Eliminates Transcription Central Utah Clinic $1M in Savings in Year 1 ($20K/MD) Delivering Results |
 15 A Mandate Has Been Issued by the Federal Government and Payers EHR is Becoming a Standard of Care Within Physician Practices All Stakeholders are Backing EHRs “If all we did was provide excellent patient care to sick patients who walked through our doors, I am convinced we would be out of business in five years.” Jerry Miller, MD Chief Executive Officer, Holston Medical Group “We will make wider use of electronic records and other health information technology, to help control costs and reduce dangerous medical errors.” State of the Union Address January 31, 2006 |
 16 Expand product and service offerings Fully integrated EHR and practice management solutions for small and mid-sized physician groups Complementary acute care solutions Increase market penetration Double the size of our salesforce Add over 1,500 physician clinics nationally Accelerate financial performance Double our clinical software revenues Natural gross margin expansion Accretive on CASH basis in 2006 and on GAAP basis in 2007 A4 Acquisition – Strategic Benefits |
 17 Large Physician Practices (>25) Segment EHR Practice Management Mid-Sized Physician Practices (10-24) Independent & Small Physician Practices (<10) Specialty Groups Profitable Leadership In Each Segment Leadership Across the Market |
 18 Large Physician Practices (>25) Segment EHR Practice Management Mid-Sized Physician Practices (10-24) Independent & Small Physician Practices (<10) Specialty Groups Profitable Leadership In Each Segment Primary Competitors Variety of Small Players Leadership Across the Market |
 19 Physician Office Physician Office Our Solutions Connect Healthcare Hospital Hospital Emergency Department (ED) Emergency Department (ED) Care Management Care Management INFORMATION INFORMATION Acute Care Focus |
 20 Our Partners |
 21 Leadership Council Founding Member and Named to Executive Committee Steering Group for Connecting Communities for Health Initiative Work Group for EHR Certification Process Provided Expert Testimony on e-Prescribing Named on HIMSS Ambulatory Steering EHR Committee Our Industry Leadership |
    22 “No one will be practicing medicine in America ten years from now without an Electronic Health Record… that’s why I believe so strongly in what Allscripts is doing.” – Newt Gingrich; Founder of the Center for Health Transformation Our Thought Leadership |
 23 Leadership "There are three ways to handle change. You can fight it and die; accept it and survive; or lead it and prosper." - Mike Leavitt Secretary of HHS |
 24 Broaden Physician Base Enhance Physician Utilization Continue Product Innovation Leverage Brand Recognition Pursue Strategic Opportunities Aggressively Pursue Physician Practices in All Markets In-Depth Training and Client Support Scalable and Modular Rapid Implementation Inform and Connect Leadership and Focused Marketing Strategies for Growth Pursue Complementary Assets Expand Strategic Relationships |
 25 1. Our physician focus is key to transforming healthcare 2. We are the leader in the key growth markets 3. Competitive advantages: Reference Sites . . . Deployment Utilization . . . People The Tipping Point is Here – The Time is Now Key Takeaways |
 26 Inform. Connect. Transform. Glen Tullman Chief Executive Officer Allscripts |
 1 The Economic Return of an EHR Scott D. Barlow Chief Executive Officer Central Utah Clinic Exhibit 99.3 |
 2 Background The Largest Independent Physician Group in Utah 85 Physicians in 19 Specialties 13 Locations and 10 Satellite Offices Each Physician is their Own Cost Center MGMA Better Performing Practice - Five Years in a Row MS-HUG Clinic of the Year - 2004 |
 3 Selecting an EHR Why Allscripts? Modular Approach Fits with Groupcast PM System Interfaces Handheld/Wireless Options “Good Solution out of the Box” Strong Functionality Selection Process Multi-Year Search Narrowed to Five Vendors Site Visits for All Vendors Final Selection |
   4 Evaluating Return on Investment Studied ROI in Five Areas Transcription expenses Medical records staff Chart supplies and creation expenses Changes in coding levels Physical space of records |
 5 The Good Old Days! |
 6 Empty Shelves Look Better! |
 7 How Far Does it Go??? |
 8 The Physician Perspective Jeff Johnson, M.D. |
 9 ROI – Exceeded Expectations $20K/MD in Year One Break-Even in Less than a Year $8.2MM over Five Years |
 10 ROI - Detail $1,849,712 TOTAL $248,000 Physical Space (one time) $159,000 MSO Services $168,000 Billing Efficiencies $262,900 Coding $75,000 Records Copy Revenue $160,000 Chart Creation $116,812 Records FTE $660,000 Transcription Quantified Annual Savings: Reception/Nursing Efficiency Charge Capture Infrastructure - Filing/Retrieval, Backbone Physician Productivity/Retention Formulary Compliance Error Reductions/Tracking Additional Savings: |
 11 The Economic Return of an EHR Scott D. Barlow Chief Executive Officer Central Utah Clinic |
 Enterprise-Wide EHR Deployment Robert Margolis, M.D. Chief Executive Officer Healthcare Partners Exhibit 99.4 |
 2 Background Five Regions In LA County 375 Employed Full-Time Clinicians 2,500 Employees 39 Community Facilities 5 Urgent Care Centers 24/7 Patient Support Center Medical Spa |
 3 Selecting an EHR Why Allscripts? Expertise in Ambulatory Space Fit with Practice Management System (IDX/GE Flowcast) Web-Based Application Senior Management Team Industry Leadership A Partner Selection Process RFP Distributed in 2004 8 Vendors Replied 5 Vendors Evaluated Cross Functional Teams Evaluated the Products: Operational Clinical Workflow Technical Allscripts Selected in 2/05 |
   4 Implementation Approach Enterprise-Wide Go-Live All in a Day’s Work… February 21, 2006 1,082 Users Logged onto TouchWorks 9.5 Million Orders Containing 88 Million Results 6.7 Million Medication Orders 10.5 Million Documents |
 5 Project Approach Technical Teams Project Management Clinic Operation Teams Clinician Teams Steering Committee |
 6 Current State Approximately 1,800 Active Users 60,000 Lab Results Received Daily 3,600 Transcription Notes Interfaced Daily 1,800 Faxes Outbound Daily 3,200 eRx’s Written
Daily (Tracking to 1 Million+/Year) 1,100 Notes Created Daily |
 7 Physician Reviews “TouchWorks has all I want to know!” “I sit here calmly clicking through my patient’s record instead of fighting with six inches of paper.” Christine L Oman, MD HealthCare Partners Medical Group |
 8 “TouchWorks offers us the ability to deliver high quality patient care and provides a level of professional fulfillment and job satisfaction not previously obtainable.” Robert Blackman, MD HealthCare Partners Medical Group Physician Reviews |
 9 “Our old system was increasingly being defined by what it could NOT do.” “I see TouchWorks defined by what it can do, will do, and what it shall do in the future.” Eric Silbiger, MD HealthCare Partners Medical Group Physician Reviews |
 10 What’s Next? Moving Beyond Our Own “Four Walls” Partnered With Allscripts to Offer TouchWorks To Community Physicians Under HCP Banner EHR Practice Management System Leverages Our Investment in Technology, Learning, and Processes Creates a “Community Care” Model Likely to Increase Overall Quality Of Care in the Region |
 11 Lessons Learned 1. Real Change Requires Real Leadership 2. There is No Substitute for the Hard Work of Pre-Planning and Organizational Readiness 3. Physician Utilization is the Goal, But It Takes a Whole Organization To Get There 4. Seize the Opportunity To Do Things Differently 5. Set Clear Destination Goals, But Remember It’s An Ever Evolving Journey |
 Enterprise-Wide EHR Deployment Robert Margolis, M.D. Chief Executive Officer Healthcare Partners |
 1 The EHR in a Small Practice James Morrow, M.D. North Fulton Family Medicine Exhibit 99.5 |
 2 Background Three Clinics Located in Metro Atlanta, GA 10 Physicians Family Practice Implemented EHR in 1998 Won Prestigious HIMSS Davies Award For Excellence in Implementing An Electronic Medical Record (The Only Family Practice in the U.S to Win Award In 2004) |
 3 Unique Considerations for Small Practices Limited Access to Capital Limited IT Expertise/Support Complexity of Interfacing/Interoperability |
 4 Selecting an EHR Why Should a Medical Group Select HealthMatics from Allscripts? Combined EHR and PM Solution Simple/Intuitive System Advanced Functionality Significant ROI Excellent Support/Service |
   5 You Can Move From This… |
 6 …and this… |
   7 …to This! |
 8 The Question… Can it work in a small practice? |
 9 F T Es per provider Staffing 4.7 2.8 |
 10 $112.47 $79.32 $33.15/visit The Bottom Line… Cost per Visit 130 per day, 22 days, 12 months |
 11 $112.47 $79.32 $4309.00/day The Bottom Line… Cost per Visit 130 per day, 22 days, 12 months |
 12 $112.47 $79.32 $2,625,480/year The Bottom Line… Cost per Visit 130 per day, 22 days, 12 months |
   13 Evaluating Return on Investment ROI for a “Small Practice” Savings = $4,594/day $1,249,568 in Savings in Year One |
 14 Lab Results |
 Radiology Reports |
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 Digital Stress ECG |
 Internal E-Mail |
 Create Letters |
 |
 22 The EHR in a Small Practice James Morrow, M.D. North Fulton Family Medicine |
 1 Product Roadmap J. Peter Geerlofs, M.D. Chief Medical Officer Allscripts Exhibit 99.6 |
 2 Product Roadmap What sets us apart, even more than our highly successful current EHR products… is execution on a product strategy that anticipates healthcare transformation |
 3 Fundamentals Stages of Technology Adoption IDDUINEM Allscripts EHR Mental Model™ |
 4 Technology Adoption Substitutive Innovative Transformative |
 5 Technology Adoption * * * * * * SUBSTITUTIVE Doing the same thing by simply substituting the new technology for the old |
 6 Healthcare Transformation Pay for Quality Connectivity Empowered Patients |
 |
 8 TouchWorks V11 Substitutive Features Chart-Like Easy to Learn and Use Integrated Dictation Innovative Features Order-of-magnitude Faster Workflows Configurable Point of Care Decision Support Transformative Features Health Management Plan/Careguides Plug-in Capable Architecture |
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 |
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 |
 |
 |
 |
 18 Health IT Rapidly Evolving Job #2 Delivering what the health enterprise will need… tomorrow Job #1 Delivering what physicians will use… today |
 19 EHR Mental Model™ |
 20 EHR Mental Model™ |
 21 EHR Mental Model™ |
 22 Connect to Patients 22 Transformed healthcare will be all about putting the patient at the center of the process. |
 23 Connect to Ancillaries 23 Technology makes it easy to interconnect any and all instruments collecting information about patients. |
 24 Connect to Care Team 24 Management of chronic disease requires a team who may be physically separated, but virtually on the same page. |
 25 Connect to Research 25 50% of healthcare doesn’t work! Research and clinical practice need to be seamlessly integrated. |
 26 In Conclusion – Pay For Quality "Over the next five to ten years, pay-for- performance-based compensation could account for 20-30% of what the federal programs pay." Wall Street Journal 9/17/04 AMA/CMS/NCQA Collaborate on Quality Measures P4P/P4Q Requires a New Generation of EHRs |
 27 27 Questions |
 28 Product Roadmap J. Peter Geerlofs, M.D. Chief Medical Officer Allscripts |
Exhibit 99.7
 |
Investor Day October 18, 2006 New York, NY |
AGENDA
Pavilion Room, Rockefeller Center
| 8:00 – 9:00 AM |
Continental Breakfast | |
| 9:00 – 9:30 AM |
Welcome Address | |
| Glen Tullman | ||
| Chief Executive Officer | ||
| 9:30 – 10:00 AM |
Version 11 Overview – Advancing the EHR | |
| Peter Geerlofs, M.D. | ||
| Chief Medical Officer | ||
| 10:00 – 10:25 AM |
Financial Overview | |
| Bill Davis | ||
| Chief Financial Officer | ||
| 10:25 – 10:40 AM |
Break | |
| 10:40 – 11:30 AM |
Expert Roundtable of Allscripts Clients | |
| Scott Barlow | ||
| Chief Executive Officer | ||
| Central Utah Clinic | ||
| Robert Margolis, M.D. | ||
| Chief Executive Officer | ||
| HealthCare Partners | ||
| James Morrow, M.D. | ||
| Partner | ||
| North Fulton Family Medicine | ||
| Facilitator: | ||
| Dan Michelson | ||
| Chief Marketing Officer | ||
| 11:30 – 12:15 PM |
Transforming Healthcare with Information Technology | |
| David Brailer, M.D., Ph.D. | ||
| Former National Health Information Technology Coordinator | ||
| Department of Health and Human Services | ||
| 12:15 – 1:00 PM |
Lunch and Panel Discussion with Q & A | |
| Allscripts Executive Management Team | ||
|
|
Investor Day October 18, 2006 New York, NY |
KEYNOTE SPEAKER
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David Brailer, M.D., Ph.D. – Dr. Brailer served over two years as the nation’s first National Coordinator for Health Information Technology. He was appointed National Coordinator on May 6, 2004 by President George W. Bush. As National Coordinator, Dr. Brailer was responsible for leading federal and private sector efforts to improve health care quality, accountability and efficiency through widespread deployment of health information technology. He has set the nation’s health care industry on a course toward modernized health information standards, certification of health information technology tools, state-of-the-art information sharing architectures and new policies for protection of consumer privacy. Dr. Brailer has addressed how health information can help protect the nation from adverse drug events, bioterrorism, pandemic flu and other public health threats. As National Coordinator, Dr. Brailer fostered partnerships between government and the private sector for health information breakthroughs that will be valuable and beneficial to the nation’s consumers. Prior to his appointment, Dr. Brailer served as a senior advisor and consultant to the federal government as it formulated its health information technology policy. During this period, Dr. Brailer was a Senior Fellow at the Health Technology Center in San Francisco, a research organization that explores the potential for and impact on health care delivery. Dr. Brailer was Chairman and Chief Executive Officer of CareScience, Inc., from 1994-2002. He founded CareScience to develop and commercialize information technology that would reduce medical errors and transform physician and hospital quality. |
CLIENT PRESENTERS
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Scott D. Barlow, M.B.A., Chief Executive Officer, Central Utah Clinic – Mr. Barlow serves as the Chief Executive Officer of Central Utah Clinic, an 80-physician group practicing at 23 urban and rural locations throughout the State of Utah. In 2004, the Microsoft Healthcare Users Group (MS-HUG) awarded the Central Utah Clinic with the prestigious national Clinic of the Year Award for its use of an Electronic Health Record. He was recently appointed by the Governor of Utah to the Utah Digital Health Service Commission due to his leadership of the digital transformation of Central Utah Clinic. He has been in the healthcare industry for 19 years, with 15 years in group practice management. He holds a Bachelors degree in Accounting and an MBA in Health Care Administration. He is an active member of Medical Group Management Association and Utah Medical Group Management Association. He also serves on various community task forces and boards, including the Nebo Education Foundation and Payson Area Kiwanis Club. He has a keen sense of the health needs of the community and actively pursues programs to improve health services to patients. | |
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Robert Margolis, M.D., Chief Executive Officer, HealthCare Partners – Dr. Margolis has been the managing partner and Chief Executive Officer of HealthCare Partners since the formation of the company in 1992. He was a founding partner and the managing partner of HealthCare Partners’ predecessor, California Primary Physicians Medical Group. Under Dr. Margolis’ stewardship, HealthCare Partners has become a highly respected and innovative physician-owned and operated medical group, IPA and MSO. He is Chairman of the National Committee for Quality Assurance (NCQA), Chairman-Elect of the California Association of Physician Groups (CAPG) and past Chairman of the American Medical Group Association. He is a member of the Executive Management School Advisory Committee, School of Public Health, at University of California Los Angeles. Dr. Margolis is board certified in internal medicine and medical oncology. Dr. Margolis is a much sought-after spokesperson due to his vast experience in integrated delivery systems and physician practice management. He is a graduate of Rutgers University and the Duke University Medical School and served a fellowship at the National Cancer Institute. | |
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Investor Day October 18, 2006 New York, NY |
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James R. Morrow, Jr., M.D., Partner, North Fulton Family Medicine – Dr. Morrow practices in and manages North Fulton Family Medicine in Cumming, Georgia. In 2005, HIMSS awarded the 16-clinician North Fulton group with the prestigious Nicholas E. Davies Award in ambulatory care for its use of an Electronic Health Record. Most recently, Dr. Morrow was selected as a commissioner to serve on the Certification Commission for Healthcare Information Technology (CCHIT). As a CCHIT commissioner, Dr. Morrow will provide strategic direction, ensure objectivity and credibility, and approve the final ambulatory EHR certification criteria and processes. He attended Clemson University for his Bachelor’s and Master’s degrees, and attended medical school at the University of South Carolina School of Medicine and completed his residency in Family Medicine in Anderson, South Carolina in 1985. Dr. Morrow appeared throughout the winter of 2003 on the Weather Channel, has for the last three years served as the team physician for the North Forsyth High School football team, and was field physician for the Georgia Bulldogs during the Southeastern Conference Championship game at the Georgia Dome in 2002. Dr. Morrow is board certified in family medicine and is a member of the American Academy of Family Physicians. He is a frequent speaker at industry conferences. | |
ALLSCRIPTS EXECUTIVE TEAM
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David Bond, President, HealthMatics, Allscripts – David Bond brings more than 27 years experience in the computer software industry to Allscripts. Bond began his career by serving as Vice President and co-founder of Specialized Data Systems, a provider of governmental accounting systems. In 1985, he joined Medic Computer Systems as Regional Sales Manager and later held positions as Vice President of Marketing, Vice President of Business Development and Vice President of Customer Support. Bond moved to private consulting in 1998, and later that year joined A4 Health Systems as Vice President of Sales and Marketing. In March 2001, Bond assumed a role as Executive Vice President of A4 Health Systems’ Ambulatory Division and was appointed his current position in March 2006 as the President of HealthMatics for Allscripts, after the A4 merger. Bond was an A4 Board of Director, for approximately 2.5 years and serves on the ECU Business School advisory board. Mr. Bond graduated from East Carolina University with a B.S. in Business Administration. | |
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Joseph Carey, Chief Operating Officer, Allscripts – Joseph Carey has been the Chief Operating Officer of Allscripts since April 1999 and has over 17 years of healthcare information technology experience. From September 1998 to April 1999, he served as President and Chief Operating Officer of Shopping@Home, Inc. Prior to that time, he was Senior Vice President and General Manager of the Resource Management Group of HBO and Company, a healthcare software firm. Mr. Carey joined HBOC in 1997 with HBOC’s acquisition of Enterprise Systems, Inc., where he held the role of President from 1993 until the acquisition. Mr. Carey previously served as one of the founding board members for the Microsoft Healthcare Users’ Group (MSHUG) and as a Foundation Member on the Board of the College of Healthcare Information Management Executives (CHIME). | |
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Bill Davis, Chief Financial Officer, Allscripts – Mr. Davis joined Allscripts as Chief Financial Officer in October 2002 and is responsible for all financial operations of the Company, as well as its human resource and management information system operations. As Chief Financial Officer, Mr. Davis was responsible for developing a comprehensive five-year operating plan that has resulted in the company delivering profitable results in 2004, 2005 and 2006. Such plan calls for sustained profitable growth for the balance of 2006 and beyond. Prior to joining Allscripts, Mr. Davis was the Chief Financial Officer of Lante Corporation, a leading technology consulting firm. Mr. Davis helped lead the Company’s Initial Public Offering in February 2000 and its subsequent sale to SBI and Company in September 2002. From 1991 through 1999, Mr. Davis was in the Technology Group of PriceWaterhouseCoopers LLP. Two of those years were spent in PwC’s National Technical Group in New York, NY and focused on emerging technical issues, including software revenue recognition and the SEC’s proposals on the | |
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Investor Day October 18, 2006 New York, NY |
| company registration process and use of plain English. In 1999, Mr. Davis was selected by PwC as one of its candidate’s for the Securities and Exchange Commission’s Professional Accounting Fellowship Program due to his technical expertise in areas such as revenue recognition and software capitalization. Mr. Davis earned his Bachelors degree in Accounting from The University of Cincinnati and his Masters of Business Administration from Northwestern University. Mr. Davis also is a Certified Public Accountant. | ||
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J. Peter Geerlofs, M.D., Chief Medical Officer, Allscripts – Dr. Geerlofs has been the Chief Medical Officer of Allscripts since 2000. He is the founder of Medifor, a medical software company acquired by Allscripts, as well as a board-certified family physician, former Health Officer for Jefferson County, and founder of Port Townsend Family Physicians, Inc. Since the early 1980s, Dr. Geerlofs has lectured and written widely on the use of computers in clinical medicine. Throughout this time, Dr. Geerlofs’ passion was to create systems that were affordable and could help introduce clinical computing to the average practicing physician. Medifor was founded with that vision in mind. He now brings that same passion to the development of the Allscripts family of products. Dr. Geerlofs currently serves on the Steering Group of the Markle Foundation’s “Connecting for Health Initiative”, a Public-Private Collaborative and an effort convened by the Markle Foundation to address the challenges of mobilizing information to improve quality, conduct timely research, empower patients to become full participants in their care, and bolster the public health infrastructure. | |
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Laurie McGraw, President, Clinical Solutions Group, Allscripts – Laurie McGraw joined Allscripts in January 2001 as a result of the acquisition of IDX Systems Corporation’s subsidiary, ChannelHealth. She has spent the past thirteen years focused on clinical automation in various roles running implementations, development, and service groups with IDX and Allscripts. Today, Ms. McGraw is the President of the Clinical Solutions Group. Ms. McGraw has a ten-year tenure working with IDX and currently resides in Burlington, VT. Ms. McGraw recently served on the 2004 Board of Examiners for the Baldrige National Quality Program. | |
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Dan Michelson, Chief Marketing Officer, Allscripts – Mr. Michelson joined Allscripts in April 2000 and is responsible for developing and driving the company’s ‘go-to-market’ strategy. Prior to joining the Company, Mr. Michelson served in leadership roles in strategic planning, product management, marketing and sales for Baxter Healthcare, a leading medical supply company, and AstraZeneca, one the world’s largest pharmaceutical companies. He has also provided a strategy and process redesign consulting for many of the leading hospitals and integrated delivery networks in the U.S. In all roles, his primary focus has been to drive meaningful change to improve healthcare. Mr. Michelson serves on the Certification Commission for Healthcare Information Technology (CCHIT) work group that is responsible for developing the certification process for Electronic Health Records. Mr. Michelson was also named to the Executive Committee for and is a founding member of the EHR Vendor Trade Association (EHRVA). He has a B.S. in Finance from Indiana University and a M.B.A. in Marketing and Management from DePaul University. | |
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Lee Shapiro, President, Allscripts – Lee Shapiro became President of Allscripts in 2002 and has been with the Company since April 2000. Mr. Shapiro has directed the Company’s many mergers and acquisitions, including ChannelHealth from IDX Systems, Advanced Imaging Concepts and RxCentric, as well as the Company’s strategic relationships, such as those with Microsoft, HP, and IDX. Prior to joining AHS, Mr. Shapiro was the Chief Operating Officer of Douglas Elliman-Beitler, a premier commercial office management and development company, where he directed all business activities throughout the United States. After graduating from The Law School at University of Chicago in 1980, Mr. Shapiro practiced commercial law at Barack, Ferrazzano, Kirschbaum, Perlman and Nagelberg, a prominent Chicago law firm. Commencing in 1985, Mr. Shapiro became President of SES Properties, Inc., a closely held, fully integrated real estate company based in Carlsbad, CA and also the largest retail developer in Las Vegas, Nevada, during his tenure. Concurrently, Mr. Shapiro formed City Financial Bancorp in 1986 and served as its Vice Chairman. He was responsible for acquisition of financial institutions, financing, regulatory issues, legal affairs, review and restructuring of operations and the ultimate sale of this $100 million holding company. | |
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Investor Day October 18, 2006 New York, NY |
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Glen E. Tullman, Chairman and Chief Executive Officer, Allscripts – Glen Tullman joined Allscripts as Chief Executive Officer in August 1997 to lead the Company’s transition into the healthcare information sector. He led the Company’s Initial Public Offering and Secondary Offerings of the Company, which is now traded on Nasdaq (MDRX) and has driven the Company to becoming the leading provider of clinical software, connectivity and information services to physicians. In 2006, Mr. Tullman was named ‘Chief Executive Officer of the Year’ by the Illinois Information Technology Association. Prior to joining Allscripts, Mr. Tullman was Chief Executive Officer of Enterprise Systems, Inc., a leading healthcare information services company providing resource management solutions to large integrated healthcare networks, from October 1994 to July 1997. Mr. Tullman graduated from Bucknell University Magna Cum Laude, with a double major in Economics and Psychology. Upon graduation, he joined the Executive Office of the President, the Office of Management and Budget in Washington, D.C. and later accepted a fellowship to study social anthropology at St. Antony’s College, Oxford University, England. Mr. Tullman serves on the Board of the Juvenile Diabetes Research Foundation in Chicago, as well as a number of other public and private boards. | |