Allscripts' McKesson EIS Business Acquisition 2017
Frustrated Paragon Customers Hope for Quick Development

1. 76% of Paragon Clients Say the Acquisition Does Not Change Their Future Plans

One-quarter of interviewed Paragon customers say the announcement will potentially change their long-term plans—this group is split between those who were previously planning to leave but are now reconsidering (13%) and those who were planning to stay but are now reconsidering (11%). Of the 13% already planning to leave, many like that Allscripts is solely focused on healthcare software (unlike McKesson) and believe Allscripts will invest the resources needed to make Paragon successful. Of the 11% who were previously planning to stay, some have had poor experiences with Allscripts in the past or fear that Allscripts is repeating McKesson’s mistake of trying to develop two EMR platforms. The biggest portion of respondents are organizations whose plans have not changed following Allscripts’ announcement. Time will tell whether some larger Paragon customers will consider Allscripts Sunrise Clinical Manager in their go-forward decisions.

2. Clock Is Ticking for Allscripts to Improve Paragon; 24% Feel Their Position Has Improved

While many Paragon users are glad the uncertainty of a pending acquisition is over, most interviewed customers feel that Allscripts’ announcement does not improve or worsen their position with Paragon—this group includes organizations who have already made decisions to leave Paragon, those who feel stuck with the product, those who are waiting to see what Allscripts will do, and those who are satisfied with Paragon. Regardless of position, many interviewed customers agree that if Allscripts is going to entice Paragon customers to stick around, they are going to have to move quickly to provide not just a strategy but actual improvements to Paragon’s functionality and support. Nearly one-quarter of interviewed customers feel their position has improved and believe Allscripts intends to keep Paragon in the community space, where it has historically been more frequently deployed and where the functionality gaps aren’t as prominent.

3. Acquisition Doubles Allscripts' Market Share; Can They Make Paragon Relevant Again?

Allscripts’ acquisition bumps them up to fourth place in terms of total US market share. Sunrise Clinical Manager’s market share has grown incrementally over the past three years, and satisfaction with SCM has been steady over the past five years. SCM hasn’t kept pace with the market leaders in terms of new contracts or overall mindshare. With the acquisition of Paragon, Allscripts has an opportunity to turn around Paragon customer satisfaction and market share, which have both plummeted over the past several years as a result of slow development and the uncertainty created by McKesson’s divestment of other HIT products.

4. Confidence in Allscripts' Future Development Varies

For years, Paragon customers have been significantly disappointed by McKesson’s development efforts. Though Allscripts has done better with development, Sunrise Clinical Manager customers feel the system has room for some improvement. Just under half of interviewed Paragon customers are withholding judgment as to whether Allscripts’ development of Paragon will be meaningful. Another 29% are confident that Allscripts will continue to develop and improve Paragon. They believe Allscripts is looking to fill a gap, and they see the acquisition’s lower price point as a signal that Allscripts plans to put additional R&D resources into Paragon. An equal number are doubtful; they feel developing Sunrise Clinical Manager and Paragon will divide Allscripts’ focus, and they view the lower purchase price as evidence that Allscripts doesn’t think Paragon is salvageable.

Writer
Elizabeth Pew

Designer
Natalie Jamison

Project Manager
Robert Ellis