U.S. Markets open in 8 hrs 5 mins

Allscripts to Fortify Middle East Foothold With New Project

Zacks Equity Research

Allscripts Healthcare Solutions Inc. MDRX recently announced that Qatar-based Alfardan Group and Chicago-based Northwestern Medicine have selected it to provide ambulatory care services for the launch of a new project — ‘Alfardan Medical with Northwestern Medicine’. Notably, this is likely to strengthen the company’s foothold in the Middle East.

For investors’ notice, the project will leverage on Allscripts’ flagship ambulatory care services including Sunrise Ambulatory, Sunrise Surgery, Sunrise Radiology, Allscripts Clinical Performance Management, Allscripts Lab and iPro Anesthesia. Not to forget, Allscripts already had 12 new Sunrise facility wins in the fourth quarter of 2018, which reached its total hospital wins to 23 in 2018.

Additionally, the company had also signed a 10-year expansion agreement with Heritage Valley Health System for integrated delivery systems, physician practices, outpatient facilities, and three hospitals during the same quarter. Allscripts’ Paragon expansion deal with St. Anthony Hospital is also noteworthy.

Coming back to the news, the project is expected to provide high-quality healthcare and multidisciplinary medical specializations in an exclusive clinical environment.

Market Prospects in the Middle East

An increasing population, per capita income and rising life-style diseases have been driving the market for healthcare services in the Middle East.

Per Business Wire, the states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) are likely to witness strong demand for medical services. Considering the bountiful prospects, Allscripts’ latest development can be considered as a well-timed one.

Other Lucrative Deals by Allscripts

In recent times, Allscripts announced a collaboration with Microsoft for implementing an innovative, integrated model for clinical research aimed at enhancing clinical research design, conducting studies more efficiently and improving the research provider and participant experience.

In 2018, the company signed a multi-year deal with a multi-facility hospital in Maine for full IT outsourcing. Per management, this was the first managed services deal with an EIS client.

Also, Colorado physician partners selected Allscripts after an extensive market evaluation process, and adopted the company’s flagship EHR, clearinghouse and patient engagement solutions in recent past.

Premier Orthopaedics with 70 full-licensed providers and over 100 mid-level providers in 30 locations too adopted Allscripts’ full suite of EHR, Practice Management, clearinghouse and patient engagement solutions.

Price Performance

Shares of the Zacks Rank #3 (Hold) company have lost 24.4% compared with the industry's 2.4% decline. The current level also compares unfavorably with the S&P 500 index's gain of 0.1% over the same time frame.

 

Want More From the Industry?

A few better-ranked stocks from the MedTech space are ABIOMED, Inc. ABMD, IDEXX Laboratories, Inc. IDXX and Wright Medical Group N.V. WMGI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ABIOMED’s long-term expected earnings growth rate is projected at 27.7%.

IDEXX Laboratories delivered a positive earnings surprise in each of the trailing four quarters, the average being 7.2%.

Wright Medical Group has a long-term expected earnings growth rate of 11.3%.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Allscripts Healthcare Solutions, Inc. (MDRX) : Free Stock Analysis Report
 
ABIOMED, Inc. (ABMD) : Free Stock Analysis Report
 
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
 
Wright Medical Group N.V. (WMGI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research