EX-99.1 2 dex991.htm INVESTOR PRESENTATION DATED JANUARY 2009 Investor Presentation dated January 2009
Connect to Health™
Allscripts Investor Presentation –
January 2009
EXHIBIT 99.1

2
Forward Looking Statements
This
communication
contains
forward-looking
statements
within
the
meaning
of
the
federal
securities
laws.
Statements
regarding
future
events,
developments,
the
Company’s
future
performance,
as
well
as
management’s
expectations,
beliefs,
intentions,
plans,
estimates
or
projections
relating
to
the
future
are
forward-
looking
statements
within
the
meaning
of
these
laws.
These
forward-looking
statements
are
subject
to
a
number
of
risks
and
uncertainties,
some
of
which
are
outlined
below.
As
a
result,
actual
results
may
vary
materially
from
those
anticipated
by
the
forward-looking
statements.
Among
the
important
factors
that
could
cause
actual
results
to
differ
materially
from
those
indicated
by
such
forward-looking
statements
are:
the
volume
and
timing
of
systems
sales
and
installations;
length
of
sales
cycles
and
the
installation
process;
the
possibility
that
products
will
not
achieve
or
sustain
market
acceptance;
the
timing,
cost
and
success
or
failure
of
new
product
and
service
introductions,
development
and
product
upgrade
releases;
competitive
pressures
including
product
offerings,
pricing
and
promotional
activities;
our
ability
to
establish
and
maintain
strategic
relationships;
undetected
errors
or
similar
problems
in
our
software
products;
compliance
with
existing
laws,
regulations
and
industry
initiatives
and
future
changes
in
laws
or
regulations
in
the
healthcare
industry;
possible
regulation
of
the
Company’s
software
by
the
U.S.
Food
and
Drug
Administration;
the
possibility
of
product-related
liabilities;
our
ability
to
attract
and
retain
qualified
personnel;
our
ability
to
identify
and
complete
acquisitions,
manage
our
growth
and
integrate
acquisitions;
the
ability
to
recognize
the
benefits
of
the
merger
with
Misys
Healthcare
Systems,
LLC
(“MHS”);
the
integration
of
MHS
with
the
Company
and
the
possible
disruption
of
current
plans
and
operations
as
a
result
thereof;
maintaining
our
intellectual
property
rights
and
litigation
involving
intellectual
property
rights;
risks
related
to
third-party
suppliers;
our
ability
to
obtain,
use
or
successfully
integrate
third-party
licensed
technology;
breach
of
our
security
by
third
parties;
and
the
risk
factors
detailed
from
time
to
time
in
our
reports
filed
with
the
Securities
and
Exchange
Commission,
including
our
2007
Annual
Report
on
Form
10-K
available
through
the
Web
site
maintained
by
the
Securities
and
Exchange
Commission
at
www.sec.gov.
The
Company
undertakes
no
obligation
to
update
publicly
any
forward-looking
statement,
whether
as
a
result
of
new
information,
future
events
or
otherwise.

3
The Story…
There is Now a Clear Market Leader…
-
150,000 Physicians
-
700 Hospitals
-
Top-Rated
in
All
Product
Categories
…
that is Strong and Stable
-
Revenue ~ $700mm
-
Electronic Health Records ~ $200mm
-
Revenue Cycle Management (Practice Management + Claims
Processing) ~ $400mm
-
Health System Solutions ~ $100mm
-
Recurring Revenue ~ $400mm
…
in a Growing Market
-
Market Size ~ $10b
-
Growth ~ 15-20% in EHR markets
1
2008 Year-End KLAS Report
1

4
Why Allscripts + Misys?
›
Brought two market leaders together
›
110,000 + 40,000
›
Perfectly positioned to win in a vibrant,
growing market with a $10B market
opportunity
–
Electronic Health Record
–
Revenue Cycle Management
›
~$1B cross-sell
opportunity within base
›
$20+M in cost synergies

5
2001:
Form Partnership to Bring Allscripts EHR
to IDX PM Base
Install
Base
(2001)
=
138,000
MDs Primarily
in Larger Practices
A Proven Approach
Install Base (2008) = 110,000
MDs Primarily in
Small-Mid Sized Practices
2008:
Allscripts and Misys Come Together
Bringing EHR to Misys PM Base
Practice Management System
Electronic Health Record

6
The Time is Now…

7
Practice Automation is Critical to the Fix…
›
Increases the Quality of Care
›
Takes Costs Out
›
Increase Reimbursement
›
Improves Patient Safety
›
Increases Patient Satisfaction

8
The Path is Clear…
“We're investing in electronic medical records
and other technologies that can drive down
healthcare costs.”
-
President-elect Barack Obama
“Cost savings from a mandatory requirement
that Medicare providers adopt and use HIT as
a condition of participating in the Medicare
program…savings total $34 billion over 10
years
from physicians and hospitals
.”
-
CBO
1
Congressional Budget Office –
12/08 –
Budget Options Vol. I –
Health Care
1

9
Key Trends Driving Technology Adoption Now
›
Declining Reimbursement for Physicians
›
Incentives for Technology Adoption
-
ePrescribing CMS Incentive ~ $3,000 to $4,000 per MD/year
-
PQRI Incentive ~ $3,000 to $4,000 per MD/year
-
Stark Safe Harbor Enables Hospitals to Fund up to 85% of EHR
and up to 100% of ePrecribing
›
EHRs
Increasingly Seen as a “Standard of Practice”
›
Patients Are Not Patient Anymore

10
›
< 20% Physician
Penetration
›
< 10% in Smaller
Groups
The Opportunity is Significant
The Electronic
Health Record
Revenue Cycle
Management
›
~10% to 20% of PM
Systems Replaced/Yr.
›
Allscripts 3
Largest
Claims Processing
Clearinghouse
+
Significant
Upside
›
Lower IT
Penetration than
Any Sector of
Economy
=
All Results in a $10+ Billion Market Opportunity
rd

11
A Great Place to Start…Our Client Base
›
150,000 MDs
and
700+ Hospitals
Across the U.S.
›
90,000 MDs
without
an EHR
›
~ $1B
Cross-Sell
Opportunity

12
12
Professional EHR + PM
EDI
~40% penetration
1.3k practices
65k physicians
Enterprise EHR + PM
EDI
~10% penetration
170k practices
241k physicians
Professional EHR + PM
ASP-Based EHR
EDI
Segment
Allscripts Offering
Penetration/Size
~20% penetration
33k practices
227k physicians
Independent
Practices
1-3 physicians
Leadership Across the Ambulatory Market
Small to Mid-Sized
Physician Practices
4-25 Physicians
Large Physician
Practices
26-200+ Physicians

13
Connect Solutions
•
Connect Portal
•
Connect Messaging Services
Community Care
……
……
Clinical Solutions
•
Professional EHR
•
Enterprise EHR
•
MyWay
•
ePrescribe
•
Document Management
•
Medication Services
•
Clinical Trials
•
Patient Access Solutions
Business Solutions
•
PM/ Revenue Cycle Services
•
Payerpath / EDI
Ambulatory
Care
Emergency Department
Care Management
•
Utilization Management
•
Discharge Planning
•
Documentation Integrity
•
Quality Management
Stark Offerings
•
EHR Solutions
•
ePrescribe
Acute
Care
Homecare
•
Home Health & Private Duty
•
Hospice
Referral Management
•
Referral Management Plus
•
Mobile
•
Core System Integration
Post-Acute
Care
A Diversified Portfolio

14
Our Operating Leaders…
Vern Davenport
President
Clients:
21,000+ clients
Small to mid-sized practices
Employees:
~1,700 employees
160 sales reps (30 inside)
Laurie McGraw
President
Clients:
5,000 clients
Large Physicians Practices,
IDNs, and Hospitals
Employees:
~350 employees
35 sales reps (9 inside)
Jeff Surges
President
Clients:
700 hospitals
6,000 post-acute providers
600+ homecare and hospice
agencies
Employees:
~300 employees
35 sales reps (5 inside)
Professional
Solutions
Enterprise
Solutions
Health Systems
Group

15
15
Waves of Healthcare IT Adoption
Electronic          
Health Record
Market
Enhance the efficiency and
quality of the visit
Wave
2
Allscripts Leadership in EHR
Product and Blue Chip
Client Base
Practice
Management
Market
Enhance the
effectiveness of the
practice
Wave
1
Misys Leadership in Building
Practice Management / Claims
Management Client Base
Connectivity
and
Information
Market
Enhance the health of the
patient and the practices
bottom line
Wave
3
AllscriptsMisys Leadership in
New Solutions and Services

16
Bloomberg of Healthcare
The Real Power Comes When You Connect

17
The Allscripts Equation
Market Growth/Expansion Opportunity
+
Market Leadership
+  Innovation
+  Financial Stability
=  Strongest Player in an Expanding Market

18
Financial Overview
*
*
*
*
*
*

19
2009 Outlook
($ in millions - unaudited pro forma)
Fiscal
Fiscal
Guidance
2008
2009
Bookings
$317.7
N/A
Revenue
$684.2
$700.0 to $715.0
Less: PI
(15.0)
0.0
Adjusted Revenue
$669.2
$700.0 to $715.0
Non-GAAP Net Income
$62.6
$76.0 to $82.0
Less: Physicians Interactive
(1.1)
0.0
Less: Synergies Timing
0.0
0.0
Less: Amortization Timing
0.0
0.0
Non-GAAP Net Income
$61.5
$76.0 to $82.0
Non-GAAP Net Income Per Share
$0.43
$0.49 to $0.53
Pro Forma Share Count
148.0
154.0
Note: Fiscal 2008 reflects actual results for Misys Healthcare (under U.S GAAP) for the year ended May 31, 2008
    and the trailing 12-months for Allscripts for the period ended June 30, 2008.
Note 2: Adjusted earnings is a non-GAAP financial measure. See reconciliation to comparable GAAP
    measure on page 24.

20
Non-GAAP Net Income Potential
($ in millions - unaudited pro forma)
Fiscal
Fiscal
2008
2009
Earnings Before Taxes, as reported
$57.5
$96.0 to $106.0
Taxes (Assumed @ 40% in 09 and 39% in 08)
(22.4)
              
($38.0 to $45.0)
Net Income
$35.1
$58.0 to $64.0
Adjustments: (tax adjusted @ 40% in 09 and 39% in 08)
Stock-Based Compensation
$5.4
$6.6
Deal-Related Amortization
14.0
                
11.4
                
One-Time Costs / Transaction Related Expenses
8.1
                 
-
                  
Physicians Interactive
(1.1)
                
-
                  
Total Adjustments
$26.4
$18.0
Non-GAAP Net Income
$61.5
$76.0 to $82.0
Non-GAAP Net Income Growth
42%
24% to 33%

21
Illustrative Revenue Sensitivity Analysis
Four Year Cumulative Penetration Rates
110,000
MDs
20%
Assumed EHR Penetration
88,000
Addressable EHR Market
20%
30%
40%
50%
60%
License/Service Fees
$165m
$248m
$330m
$410m
$495m
Annual Maintenance
$20m
$30m
$40m
$50m
$60m

22
Significant and Realizable Synergy Opportunity
›
Cost synergies of $20m+, pre-tax,
expected in first year following
transaction close
-
Up to $25m to $30m, pre-tax, in annual
cost savings within the next few years
-
Main drivers of cost synergies include:
R&D, Marketing, Sales, Administrative
Functions
›
Revenue synergies from cross-selling
into respective client bases is expected
to be ~$7m+ in FY 2009
›
Increased operating leverage expected
to result in mid teens EPS growth
Projected Cost Synergies
$20m+
$25 -
$30m
First Year
Run Rate

23
Capital Structure
(shares in millions)
Ownership %
Allscripts Outstanding Shares
63.0
41.4%
Allscripts Shares Issued to Misys plc
82.9
54.5%
Shares Underlying Remaining Debentures
2.5
2.3%
"In the Money" Options
2.4
1.5%
Unvested Restricted Stock Units
0.4
0.2%
Outstanding Equity as of Closing
151.1
100.0%
Estimated Number of RSU Grants in FY 2009
4.0 to 4.5

24
Summary
a complete portfolio
of solutions…
for practices in all sizes/areas…
a footprint of 1 of 3 MDs
in the U.S.
Products
Target
Client Base