Zacks_Analysts' Blog : HITEC-LA Selects Athenahealth - Analyst Blog

Medical billing and records software provider Athenahealth Inc (ATHN) has been selected as a preferred vendor for electronic health record (“EHR”) solutions by Health Information Technology Extension Center for Los Angeles (HITEC-LA).

HITEC-LA, the designated regional extension center (“REC”) for Los Angeles County, is responsible for the adoption and implementation of EHR systems across all physician and primary care providers in the county and help them to qualify for the federal incentive program.

The collaboration (between Athenahealth and HITEC-LA) will allow solo, small group, and clinic health care providers across Los Angeles County to access Athenahealth’s web-based “athenaClinicals” EHR solution.  This will enable HITEC-LA’s members to secure incentives offered by the HITECH Act, which was enacted as part of the American Recovery and Reinvestment Act (“ARRA”).

Physicians and hospitals that adopt EHR and use them meaningfully are eligible for incentives under the ARRA, a federal stimulus package aimed at increasing the use of EHR by medical practitioners.

Athenahealth extended the timeline for physicians to participate in its “Federal Stimulus Bonus Payment Guarantee Program” following the release of the government’s final rules for “Meaningful Use” of EHR in July 2010.

As a result, physicians across the U.S. (including those in Los AngelesCounty) now have until June 30, 2011, to join the guaranty program and implement Athenahealth’s EHR solution to qualify for the incentive under the HITECH Act. Health care providers affiliated to HITEC-LA can buy Athenahealth’s EHR solution at a discounted rate. HITEC-LA’s goal is to help at least 3,000 eligible primary care providers achieve Stage 1 meaningful use requirements under the HITECH Act by April 2014.

Massachusetts-based Athenahealth is a leading provider of web-based business services for physician practices. Sustained strong adoption of the company’s athenaClinicals EHR services has contributed to a revenue growth of 28% in first-quarter fiscal 2011. Utilization of athenaClinicals by medical providers more than doubled year over year in the quarter.

However, Athenahealth continues to face stiff competition across all of its operating platforms with established Health IT players such as Allscripts-Misys (MDRX) and Quality Systems (QSII) posing a major threat to the company. Nevertheless, the company is well placed for growth boosted by the expanded adoption of its premium solutions.