SOURCE: AdvancedMD Software

AdvancedMD Software

June 22, 2010 07:00 ET

AdvancedMD Announces Record Revenue and New Client Growth in First Quarter 2010

SALT LAKE CITY, UT--(Marketwire - June 22, 2010) -

First Quarter Highlights

  • 26th consecutive quarter of revenue growth
  • Record revenue for quarter exceeded $8M
  • 183 new clients brought onto the AdvancedMD Network
  • Completed the acquisition of the 2008 CCHIT Certified® PracticeOne EHR (December 31, 2009)
  • Averaged 1.5 million claims per month processed through our Medical Practice Optimization (MPO) Network
  • More than 98% of electronic claims were accepted on the first submission to the MPO Network with no rework required
  • Launched the innovative AdvancedBiller™ partner program, equipping billing services with tools to compete with companies like athenahealth®
  • 2 executives added: Steve ZoBell, Chief Product and Technology Officer and Bill Stone, VP and General Manager, Billing Services Partner Division
  • Added to the Healthcare Informatics 2010 "HCI 100" list

AdvancedMD® Software, Inc., a privately-held provider of all-in-one, software as a service (SaaS) Practice Management, Electronic Health Record (EHR), and medical billing applications for medical practices and medical billing services, today announced financial and operational results for first quarter 2010.

Total revenue exceeded $8 million for the quarter ending March 31, 2010, an increase of 29% over the same period last year. Total revenue for 2009 was $26.8 million of which nearly 90% was recurring revenue, demonstrating the strength of the company's profitable SaaS monthly subscription model and providing a solid foundation for continued future investment and growth in the dynamic independent physician market.

The company added 183 new clients during the first quarter of 2010, which places it amongst the leaders in new market penetration for medical practice IT solutions. As of March 31, the AdvancedMD system supported more than 3,800 clients, representing more than 10,000 providers, of which nearly 50% are managed by AdvancedMD billing service partners.

"With 60% of medical encounters taking place in practices with three or less doctors, the independent physician market remains a critical component of our health care system. Our Q1 results are clear evidence of their strong demand for robust technology and our ability to successfully provide comprehensive solutions to these smaller physician offices through our SaaS-based offering," said Eric Morgan, CEO, AdvancedMD. "AdvancedMD has the scale and capacity to meet our clients' needs today and into the future and we have proven our ability to step up to the market demands driven by meaningful use."

Morgan added, "Although we have been historically known for our practice management application, we have nearly 500 clients on our clinical applications. That leaves about 3,300 practice management customers as candidates for our new certified EHR product and we look forward to working with these clients to meet their needs in this area."

Joining the company in January 2010, Steve ZoBell, Chief Product and Technology Officer, is responsible for deploying a significantly expanded R&D budget. The company anticipates nearly doubling investment in its product development in 2010 compared to 2009, with these expenses expected to reach nearly 20% of revenue. This compares to large client/server providers who are spending in many cases less than 10% of revenue on product investments. "We believe this is an ideal time to increase investments in our products and to clearly establish AdvancedMD as the leader in the small physician market," said Morgan.

Bill Stone, Vice President and General Manager of the Billing Services Division, is working to establish AdvancedMD as the vendor of choice among the billing services community as they seek to grow their businesses by upgrading their legacy client/server software and by adding additional value to their customers through EHR and other services. "Due to the close, high touch relationships established by our billing services partners, many physicians will desire to work with their billing service providers to bring on an EHR. AdvancedMD offers physician practices the option of bringing on the AdvancedMD EHR software directly from us or by working through one of our billing service partners. We are neutral as to the approach they choose to take," said Stone. 

Morgan added: "With the market opportunity that is ahead of us and our position as the largest pure SaaS company in the healthcare IT marketplace, we are making significant investments for growth in the next few years. With nearly 200 employees today, we are expanding our sales and marketing operations to meet the demands and opportunities of the marketplace ahead."

AdvancedMD Resources

About AdvancedMD Software
AdvancedMD provides a market leading Software-as-a-Service (SaaS) electronic health record (EHR) and practice management (PM) software platform delivered to more than 10,000 providers and 300 billing service providers nationwide. As a complete Medical Practice Optimization solution, the product combines the clinical with the financial to improve workflow and revenue capture. The AdvancedMD solution includes a certified EHR, patient portal, scheduling, electronic eligibility verification, electronic prescribing, and mobile access capabilities for the practice, and sophisticated, efficient claims processing, denial tracking and revenue management for the billing professional. Processing more than 1.5M claims per month through its clearinghouse, the company is able to identify payer rule changes quickly and continuously adjust the software to reflect those changes, yielding first-pass claim acceptance rates of 98 percent or better, compared to the national average of 70 percent. For more information, please visit www.advancedmd.com.

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