Electronic health record vendor Athenahealth booked less business in the first quarter compared to a year ago even though it closed a higher rate of deals, a decrease it attributes in part to weak demand.
The cloud-based EHR vendor saw demand for its products and services lag in 2017, a year when it announced layoffs of nearly 10% of its workforce.
Athenahealth had a tough third quarter as providers stepped back from the electronic health record vendor's products, sparking an "organizational redesign" with nearly 400 employees laid off.
Athenahealth is shrinking its workforce by 9%, or more than 400 employees, as part of an "organizational redesign" to simplify the cloud-based EHR vendor's structure.
Following a disappointing first quarter, Athenahealth reported that its operating income back in the black in the second quarter, with a 15% uptick in revenue.
Karl Stubelis is leaving Athenahealth Friday after a little over a year as the EHR vendor's CFO. He will be Arcadia Health Solutions' new CFO and lead capital strategy for the company.
The company has begun a search for a permanent CFO.
A whistle-blower lawsuit against Mercy and an investor takes a bigger stake in Athenahealth
Elliott Management bought shares in the company earlier this month, just a week after the company announced disappointing first-quarter financial results.
Lower claims and collections volumes as well as slow client onboarding contributed to Athenahealth's lower-than-expected first-quarter revenue.
Vital Signs: Athenahealth CEO Bush likes the hand he's been dealt in the high-stakes interoperability game
Jonathan Bush likes where his company is in the nationwide struggle to make health IT systems more open to the exchange of patient information. Being a native web-developer gives Athena a leg up.
The websites of EHR software providers Athenahealth and Allscripts Healthcare Solutions were down for some parts of the country Friday after hackers launched an attack against the servers of Dyn, a major Domain Name System host.