Chicago, Illinois-based Allscripts Healthcare Solutions, Inc. a provider of practice management and electronic medical records software, is attempting to drastically reduce operational costs in this economically challenging time.
It is estimated that Allscripts reduced its headcount by 5% - 10% with a 15%-30% six-month pay reductions for the highest earners. Almost all contract employees have been laid off.
From the earnings call…
"Shortly after our last call, we hired the firm, AlixPartners, to assist us in this effort, and we have been working with an experienced team of their advisors for the last seven weeks to identify and capture margin improvement opportunities. From the last week of March through the end of April, we have implemented permanent reductions to our cost structure, representing $75 million in annualized value. These reductions across all functional disciplines of the company, but all we're focused on low-value work and redundancies. So we expect that delivery of value and responsiveness to our clients will actually improve as a result of these actions."
According to a company statement...
“Looking ahead, we believe Allscripts will likely be impacted as our clients focus on responding to the pandemic and caring for their patients. However, we believe Allscripts’ agility and prior strategic platform investments prepare us to handle the challenges resulting from this global uncertainty. We fully intend to align with existing and new clients to capitalize on opportunities to deploy value-added solutions. Allscripts has multiple competitive advantages, including a robust solutions portfolio, a diversified global client base, and high recurring revenues, positioning us well as we chart the path back to a more normalized operating environment.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?