Despite a year-over-year increase in net loss, Allscripts is "in the best position [it's] ever been in," CEO Paul Black said during the company's first quarter earnings call on Thursday.
Allscripts posted a net loss of $20 million, compared with a net income of $2 million in the first quarter of 2016. The loss came mostly from a stock-related charge stemming from Allscripts Homecare's merger with Netsmart Technologies last April. The transaction made Netsmart the largest human services and post-acute technology provider in the healthcare industry.
That business continues to grow, and half of its new bookings have come from new clients, said Allscripts President Richard Poulton.
Allscripts invested more in research and development this quarter, both in Netsmart and in its core Allscripts products, bringing gross R&D to $73 million, an increase of 18%.
"With Netsmart, we now offer every conceivable solution to the largest, most complex healthcare providers," Black said.
Those solutions include Sunrise, Allscripts' flagship electronic health record. Some clients, including Cancer Treatment Centers of America and South Nassau Communities Hospital, expanded and renewed their use of the system in the quarter.
Allscripts' ambulatory products, Touchworks EHR and Professional EHR, also had strong performances, with add-on and new sales.
Allscripts' revenue was up 20% over the previous-year quarter, hitting $413.5 million. Growth came both from software delivery, support and maintenance, which made up about two thirds of revenue, and from client services.
Thursday's earnings call came a few hours after the American Health Care Act of 2017 passed in the U.S. House of Representatives. Allscripts will keep an eye on Washington, Black said. "The reality tomorrow despite today's growth is that executives have healthcare businesses to run."
