Investor Newsletter April 2022

From the KLASroom

Understanding KLAS’ Vendor Differentiation

Since its founding, KLAS has always focused on differentiating vendors within set market segments. This is accomplished by interviewing healthcare professionals using our standard quantitative evaluations for healthcare software and services. KLAS also gathers other data to differentiate vendors; this data can include number of beds, practice size, number of facilities, number of procedures, daily census, home health visits, specialty type, project length, project cost, or other differentiators. This data helps providers and investors make informed purchasing or investment decisions regarding which technologies and services best suit their needs.

How Allscripts Stacks Up

Allscripts, recently acquired by Harris Health, can be used as a test case to show how KLAS’ differentiation data can be useful for providers and investors when deciding on technology solutions to acquire. In this data sample, Allscripts clients—who typically have a larger median bed count (acute facilities) or a larger number of physicians (ambulatory facilities)—report lower satisfaction and are less likely to say their EMR vendor is part of their long-term plans. Nearly 40% of ambulatory clinics and 30% of inpatient facilities that use Allscripts’ EMR systems are vulnerable to attrition. Many providers are looking for or have decided on alternative solutions.

Additionally, many Allscripts customers report frustration with sub-standard support, underdeveloped technology, integration issues, and a history of the vendor not sharing proposed product road maps. Some Allscripts customers who are staying with the vendor report feeling nervous about the Harris Health acquisition. Previous KLAS research around acquisitions in the healthcare IT market has shown that on average, about 40% of vendor acquisitions lead to lower overall customer satisfaction. Since Allscripts’ solutions are already suffering from long-term low customer satisfaction, this may lead current Allscripts customers to explore their options for alternatives sooner than they had previously expected to.

The KLASifieds

KLAS Emerging Technology

Each week, dozens of new companies knock on the doors of provider organizations and health systems to present their latest innovative solutions. KLAS publishes 70–80 individual reports per year which provide early performance data on solutions that have been designated as emerging, disruptive, or innovative. To access the KLAS reports library, visit our website.

Recent Emerging Technology Report Sneak Peek

Specialty Reports Published March 2022

KLAS typically publishes 70–80 specialty reports annually, providing market insights based on customer perceptions of and experiences with the vendor/consultant solutions they employ. KLAS also validates industry trends, emerging technologies, purchasing decision insights, and market energy. To view the full KLAS reports library, visit our website.

To purchase a KLAS report or find more information, contact the KLAS Investment Advisory team at investorservices@klasresearch.com.

Recently Released and Upcoming KLAS Specialty & Emerging Technology Reports

European EMR 2022:
Which Vendors Meet Customer Needs in a Rapidly Shifting Landscape?

In the past few years, there has been significant merger and acquisition (M&A) activity among EMR vendors who market in Europe. There has also been significant purchasing activity by healthcare organizations. This has created one of the world’s most dynamic EMR markets. From 2016–2020, KLAS validated over 300 EMR decisions that impacted over 1,200 inpatient facilities (comprehensive data for 2021 purchases not yet available). Using this data and customer feedback from 100 organizations, this report examines the customer satisfaction, market share, and recent market energy of European EMR vendors and evaluates which are best meeting customer needs in this competitive market.

Price Transparency 2022:
Hospital Perceptions of CMS Regulation

As of January 1, 2021, all US hospitals must comply with CMS’ price transparency regulation, which stipulates that hospitals must provide clear, accessible pricing estimates online for at least 300 different shoppable services. Many healthcare organizations have expressed that a variety of challenges make this mandate difficult to meet. In this perception report, KLAS interviewed 66 revenue cycle leaders to understand how hospitals are responding to the regulation and their future plans around price transparency. Going forward, KLAS intends to continue to measure and provide insights into the consumerization of healthcare.

Revenue Integrity/Underpayment Services 2022
Finding the Firm That’s Right for Your Organization

Overall, healthcare organizations are highly satisfied with the firms they engage to tackle difficult revenue-collection issues, such as underpayments, denials, and complex government reimbursement requirements. However, different firms focus on different revenue integrity areas, making side-by-side comparisons difficult. To help organizations identify which firms best fit their needs, this report looks at how well firms educate clients on ways to proactively avoid missed revenue, highlights firms’ client-validated areas of expertise, and examines each firm’s specific strengths and opportunities for improvement.

CorroHealth Autonomous Coding:
Emerging Technology Spotlight 2022

More and more healthcare organizations are evaluating the viability of autonomous coding to increase efficiency and reduce overhead expenses. CorroHealth’s autonomous coding product offers provider organizations a solution that streamlines coding workflows to reduce labor-intensive tasks and improve productivity. This report looks to validate the outcomes that CorroHealth’s customers have experienced and examine customers’ satisfaction with the product.

Codoxo:
Emerging Technology Spotlight 2022

Each year, billions of dollars are put toward healthcare, yet much of it is lost to fraudulent claims and bad payments. To help payer organizations control costs, Codoxo’s Forensic AI Platform provides actionable insights that identify existing or emerging fraud, waste, and abuse (FWA) issues. This report looks to validate the Codoxo customer experience.

Damo Consulting Digital Transformation Consulting:
First Look 2022

Healthcare provider and payer organizations are increasingly concerned with the consumer experience and are working to improve digital engagement. As part of this effort, some organizations enlist consulting firms to help plan, manage, and improve consumer experiences by digital means. Through digital transformation services, consultants help define needs and develop digital road maps. This report evaluates the experiences of organizations that have engaged with Damo Consulting on a digital transformation project.

Phox Health:
Emerging Technology Spotlight 2022

Healthcare organizations can face challenges while maintaining pharmacy financial margins, reducing medication abandonment, and delivering medications safely and securely to patients. Providing optimal care quality to virtual care patients requires timely access to prescription-delivery products and other healthcare products. This report offers a first look at Phox Health, a healthcare solution provider who partners with medical couriers to deliver medications across health system departments and to patients.

ScribeAmerica Speke:
Emerging Technology Spotlight 2022

Physician burnout from overwork is a growing concern for hospitals and health systems. In the wake of the COVID-19 pandemic and with the ongoing demands on clinicians, innovative solutions that help clinicians shift away from the computer and back to the bedside are more important than ever. This report seeks to validate the experiences of healthcare organizations that use the Speke solution, which was created by ScribeAmerica Speke’s sister company, SoundLines.

To make a purchase or find more information on KLAS reports, contact the KLAS Investment Advisory team at investorservices@klasresearch.com.

Market Activities Impacting Investments

Growth Equity Deal Activity Rises Sharply in 2021

The surge in growth equity deal activity has also been driven by private equity investors seeking exposure to higher growth companies at an earlier stage than buyouts, especially in sectors where mature companies are trading at extremely high multiples.

Three Philosophies for Implementing ESG Strategies

ESG philosophy approaches can frame implementation and substantiation guidance, which can be used to help align expectations around what sustainability-oriented programs should look like when investing in companies of various sizes, maturities, and operational complexity.

The Trust Factor of Organizations Becomes a Key Governance Issue

Managing and measuring trust requires a robust understanding of trust-driving activity throughout an enterprise along with a solid grasp of the perspectives and priorities of different stakeholders.

Congress Set to Extend Telehealth Coverage for 151 Days

Congress should move beyond extensions and make the telehealth provisions established during the COVID-19 pandemic permanent.

Hospital-at-Home Playbook

Lessons from Mayo Clinic, Michigan Medicine, and Presbyterian Health.

Current Series B Trends

Series B rounds are getting bigger and have signaled significant scaling actions for the companies receiving them. Series B rounds are happening across a variety of sectors but are still the largest in the biotech sector.

How Does KLAS Support Investors?

Investors who are familiar with KLAS but have not yet had the opportunity to speak with a member of our Investment Advisory team can visit our webpage at klasresearch.com/investment-professionals. Here, investors can gain a better understanding of how KLAS supports the investor-sponsor community.

To gain access to KLAS data or schedule your next custom diligence project, contact a member of our KLAS Investment Advisory team today at investorservices@klasresearch.com.

Upcoming KLAS Events

KLAS International Summit 2022

Registration is open

June 7–8 | Vila Vita Parc Resort, Algarve, Portugal

KLAS 2022 Digital Health Investment Symposium (DHIS)

September 13–14 | Park City, Utah

For information on all KLAS events, including those coming soon, visit the KLAS events page at klasresearch.com/events page.

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