EXHIBIT 99.1
FOR IMMEDIATE RELEASE
IDX SYSTEMS CORPORATION CONTACT ALLSCRIPTS, INC. CONTACT
Margo Happer Ken Shore
Director - Investor Relations Vice.President-Marketing
802-864-1758 ext. 6169 847-680-3515
[email protected] [email protected]
CHANNELHEALTH CONTACT
Tracey Moran
Media Relations
802-863-5525 ext. 4272
[email protected]
ALLSCRIPTS TO ACQUIRE CHANNELHEALTH FROM IDX SYSTEMS
AND COMPANIES TO ESTABLISH LONGTERM STRATEGIC ALLIANCE
CHICAGO, IL and BURLINGTON, VT, July 13, 2000 -- Allscripts, Inc. (NASDAQ:
MDRX), a leading provider of point-of-care e-prescribing and productivity
solutions for physicians, announced today its agreement to purchase
ChannelHealth Incorporated, from IDX Systems Corporation (NASDAQ: IDXC), a
leading healthcare information systems company. ChannelHealth provides a set of
Internet-based clinical and productivity solutions for physicians that brings
the power of the Internet to the practice of medicine. IDX will retain the
Patient and e-Commerce Channels(TM), which were previously part of
ChannelHealth, enabling IDX to integrate an Internet solution that leverages its
core competencies in physician practice management systems.
STRATEGIC ALLIANCE: In addition to the acquisition, Allscripts and IDX have
agreed to enter into a 10-year strategic alliance whereby Allscripts will become
the exclusive provider of Internet and point-of-care clinical applications sold
by IDX to physician practices, providing Allscripts access to IDX's current
118,000 physician practice management customers. This will position Allscripts
to rapidly expand its growing base of over 10,000 physicians. Additionally, this
will enable IDX to offer a broader product portfolio of practice management and
clinical products., increasing the number of sales opportunities to new and
existing customers.
The acquisition and alliance are expected to provide strategic benefits to both
companies. For Allscripts, this transaction offers the potential to accelerate
product distribution and enhance its point-of-care solutions. For IDX, the
transaction positions it to increase its focus on its patient and e-commerce Web
channels, while providing a strong point-of-care partner, and speeding time to
market of an integrated solution for physicians.
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The combination of Allscripts and ChannelHealth, aligned with IDX, is expected
to create clinical and financial value for physicians by providing point-of-care
solutions that are designed to enable physicians to improve clinical decision
making, increase productivity, and enhance the quality of patient care.
The agreement will enable physicians to access ChannelHealth's workflow modules
via the same hand-held, wireless computer currently used for electronic
prescribing, digital voice capture and customized patient care plans---the three
main features of Allscripts' TouchScript(R) solution.
Under the terms of the deal, which is subject to regulatory and Allscripts'
shareholder approval, Allscripts will acquire ChannelHealth in exchange for 8.6
million shares, or 21.3% of Allscripts stock on a pro forma fully diluted basis
of which IDX will receive approximately 90%. The deal is expected to close in
the fourth quarter of 2000.
"This acquisition, along with the long-term strategic partnership formed with
IDX, will enable us to greatly enhance functionality and significantly increase
the distribution of our physician solutions," commented Glen Tullman, Chairman
and Chief Executive Officer of Allscripts, Inc. "Furthermore, we believe access
to this premier customer base will enhance our e-Detailing(TM) and information
product offerings. Simply put, we believe this positions us perfectly for
long-term, sustainable growth."
IDX has a team of 60 sales and service executives who focus on their current
base of 118,000 physicians. The customer base is mainly comprised of large
physician group practices (more than 75 physicians) including a significant
number of high volume prescribers and some of the country's most prestigious
healthcare institutions.
"The sale of ChannelHealth's Physician Channel(TM), coupled with our strategic
alliance, will allow us to more quickly bring to market a fully integrated suite
of productivity tools and positions us to maximize IDX sales opportunities for
core IDX products." said Rich Tarrant, Chairman and Chief Executive Officer of
IDX. "With its focus on the point of care, a significant value proposition for
physicians, and given its proven track record in successfully selling a
hand-held wireless solution that physicians are actually using, Allscripts is an
ideal partner. We are very excited to be working together and look forward to
creating and jointly selling current and future point of care solutions to our
base of premier healthcare institutions around the country."
With this agreement physicians will have access to the leading wireless,
automated solution for addressing the most time consuming and labor-intensive
physician activities - prescribing medications, dictating notes and capturing
charges.
"The combination of Allscripts' point of care applications and ChannelHealth's
suite of products is exactly what physicians have been requesting for years,"
stated Pam Pure, chief operating officer of ChannelHealth and the executive who
will run the division for Allscripts. "They have also been asking for a solution
that pays for itself through alternative revenue, which is available from the
in-office dispensing component of Allscripts' medication management solution."
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About Allscripts
Allscripts, Inc. is the leading provider of innovative point-of-care medication
management and productivity enhancing solutions designed to meet the needs of
physician practices and managed care payers and plans. The Company's TouchScript
software provides easy-to-use electronic prescribing that reduces medication
errors and uses the Internet to route transactions to local retail, mail order
and Internet pharmacies and managed care organizations. The Personal Prescriber
is based on the Hewlett-Packard (NYSE: HWP) Jornada 600 Series hand held PC
hardware and runs on Microsoft's Windows CE operating system. The Company also
provides a number of Internet-based patient compliance and physician education
services such as its eDetailing(TM) products from its Physicians Interactive
unit, as well as e-commerce applications. Through its acquisition of
MasterChart, Allscripts markets the Practical Portable, the premier, hand-held
digital dictation solution for physicians. Allscripts also allows physicians to
prescribe a Webpage with patient care plans through its Medifor unit. Strategic
partners include IMS Health (NYSE: RX), the world's leading supplier of
information solutions to the pharmaceutical and healthcare industries, and
PlanetRx.com, (NASDAQ: PLRX), a leading Internet healthcare destination for
commerce, content and community. Allscripts is headquartered in Libertyville,
IL, and provides services to over 10,000 physicians at 3,000 sites across the
U.S. Visit Allscripts on the Web at http://www.allscripts.com. Allscripts,
TouchScript, TouchScript.Net, Personal Prescriber and 3Touch are trademarks of
Allscripts, Inc.
About IDX
Founded in 1969, IDX Systems Corporation provides complete healthcare
information solutions for physician group practices, management service
organizations, academic medical centers, and integrated delivery networks
(IDNs). To connect systems and sites across the enterprise, IDX offers a
comprehensive set of products and services designed to align physicians and
hospitals, streamline patient flow, enhance quality, and reduce costs. IDX
products are used by, or are under contract to be used by, more than 125,000
physicians and are installed at over 2,065 client sites. This includes more than
265 large physician group practices with more than 75 physicians, more than 510
physician practices with 75 or fewer physicians, and more than 280 IDNs
representing over 370 hospitals. EDiX Corporation, an IDX subsidiary, offers
Internet-based medical transcription and clinical documentation services to over
130 physician group and hospital customers.
This announcement contains forward-looking statements about Allscripts, Inc.
that involve risks and uncertainties. These forward-looking statements are
developed by combining currently available information with Allscripts' beliefs
and assumptions. These statements often contain words like will, believe,
expect, anticipate, intend, contemplate, seek, plan, estimate or similar
expressions. Forward-looking statements do not guarantee future performance.
These statements are made under the protection afforded them by Section 21E of
the Securities Exchange Act of 1934. Because Allscripts cannot predict all of
the risks and uncertainties that may affect it, or control the ones it does
predict, Allscripts' actual results may be materially different from the results
expressed in its forward-looking statements. For a more complete discussion of
the risks, uncertainties and assumptions that may affect Allscripts, see its
Registration Statement on Form S-1 (No. 333-95521), as amended March 7, 2000.
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This press release contains forward-looking statements about IDX Systems
Corporation that involve a number of risks and uncertainties. Among the
important factors that could cause actual results to differ materially from
those indicated by such forward-looking statements are possible deferral, delay
or cancellation by customers of computer system purchase decisions, possible
delay or denial of regulatory and stockholder approval for the transactions with
Allscripts, Inc., possible adverse change in the business or stock price of
Allscripts, Inc., the inability of IDX to realize benefits from its proposed
alliance with Allscripts, Inc., possible delay of systems installations,
development by competitors of new or superior technologies, changing economic,
political and regulatory influences on the healthcare and Internet industries,
changes in product pricing policies, general economic conditions and regulatory
developments in the healthcare industry, and factors detailed from time to time
in the IDX's periodic reports and registration statements filed with the
Securities and Exchange Commission, which important factors are incorporated
herein by reference. IDX undertakes no obligation to update forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated
events, or changes in future operating results, financial condition or business
over time.
