MORGAN STANLEY DEAN WITTER & CO
3, 1999-07-23
FINANCE SERVICES
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               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

            INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

                                    FORM 3

                          OMB APROVAL
                          OMB NUMBER:  3235-0104
                          Expires: December 31, 2001
                          Estimated average burden
                          hours per response........0.5

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section
17(a) of the Public Utility Holding Company Act of 1935
or Section 30(f) of the Investment Company Act of 1940

(Print or Type Responses)

1. Name and Address of Reporting Person*

  Morgan Stanley Venture Capital III, Inc.(1)
- -----------------------------------------------------------------------------
     (Last)                         (First)                      (Middle)

  1221 Avenue of the Americas
- -----------------------------------------------------------------------------
                                   (Street)

  New York                         New York                          10020
- -----------------------------------------------------------------------------
     (City)                         (State)                           (Zip)


2.   Date of Event Requiring Statement (Month/Day/Year)

     07/23/99
- -----------------------------------------------------------------------------

3.   IRS or Social Security Number of Reporting Person (Voluntary)


- -----------------------------------------------------------------------------


4.   Issuer Name and Ticker or Trading Symbol

     Allscripts, Inc. (MDRX)
- -----------------------------------------------------------------------------


5.   Relationship of Reporting Person(s) to Issuer   (Check all applicable)

       Director                                        x 10% Owner
    ---                                               ---

       Officer (give title below)                        Other (specify below)
    ---                                               ---

- ----------------------------------------------------------------------------

6.   If Amendment, Date of Original (Month/Day/Year)


- -----------------------------------------------------------------------------

7.  Individual or Joint/Group Filing (Check Applicable Line)

    Form filed by One Reporting Person
- ----

  x Form filed by More than One Reporting Person
- ----
<PAGE>

             Table I -- Non-Derivative Securities Beneficially Owned

<TABLE>
1.   Title of Security                            2. Amount of Securities     3. Ownership         4.   Nature of Indirect
     (Instr. 4)                                      Beneficially Owned          Form: Direct           Beneficial Ownership
                                                     (Instr. 4)                  (D) or Indirect        (Instr. 5)
                                                                                 (I)(Instr. 5)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                         <C>                  <C>
Common Stock                                              4,361,586                  I(2)           Through Partnerships
Series H Redeemable Preferred Stock                         217,459                  I(2)           Through Partnerships
Series I Redeemable Preferred Stock                       1,199,770                  I(2)           Through Partnerships
Series J Redeemable Preferred Stock                         268,204                  I(2)           Through Partnerships

Explanation of Responses:

(1)  Please see attached Joint Filer Information.
(2)  Except for Morgan Stanley Venture Partners III, L.P., Morgan Stanley
     Venture Investors III, L.P. and The Morgan Stanley Venture Partners
     Entrepreneur Fund, L.P. (collectively, the "Funds"), which hold the
     securities directly.
</TABLE>


Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see
  Instruction 5(b)(v).


                                                              Page 1 of 4 (Over)
                                                                 SEC 1473 (3-99)
<PAGE>
FORM 3 (continued)

           Table II -- Derivative Securities Beneficially Owned
      (e.g., puts, calls, warrants, options, convertible securities)

<TABLE>
1.   Title of Derivative           2. Date Exercisable          3.   Title and Amount of     4. Conver-    5. Owner-    6. Nature
     Security (Instr. 4)              and Expiration                 Securities Underlying      sion or       ship         of In-
                                      Date (Month/Day/Year)          Derivative Security        Exercise      Form of      direct
                                      -------------------------         (Instr. 4)              Price of      Deriv-       Bene-
                                      Date           Expira-       -------------------------    Derivative    ative        ficial
                                      Exer-          tion             Title           Amount    Security      Security:    Owner-
                                      cisable        Date                             or                      Direct       ship
                                                                                      Number                  (D) or      (Instr.
                                                                                      of                      Indirect     5)
                                                                                      Shares                  (I)
                                                                                                              (Instr.
                                                                                                              5)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>          <C>          <C>                 <C>        <C>           <C>       <C>
1994 Extension Guaranty Warrants (3)   Immed.       9/30/99      Common Stock         77,140     $7.50        I(2)      Through
                                                                                                                        Partnerships
1996 Extension Warrants (3)            Immed.       4/30/01      Common Stock        137,674     $4.20        I(2)      Through
                                                                                                                        Partnerships
Series H Warrants (3)                  Immed.       9/30/99      Common Stock        362,431     $0.06        I(2)      Through
                                                                                                                        Partnerships
Series H Extension Warrants (3)        Immed.       4/15/03      Common Stock        146,379     $0.06        I(2)      Through
                                                                                                                        Partnerships
Series J Debenture Warrants (3)        Immed.       4/15/03      Common Stock        197,254     $0.06        I(2)      Through
                                                                                                                        Partnerships
Series A Convertible Preferred Stock   Immed.       N/A          Common Stock         39,977     N/A          I(2)      Through
                                                                                                                        Partnerships
Series B Convertible Preferred Stock   Immed.       N/A          Common Stock         59,489     N/A          I(2)      Through
                                                                                                                        Partnerships
Series C Convertible Preferred Stock   Immed.       N/A          Common Stock        164,379     N/A          I(2)      Through
                                                                                                                        Partnerships
Series D Convertible Preferred Stock   Immed.       N/A          Common Stock        408,403     N/A          I(2)      Through
                                                                                                                        Partnerships
Series F Convertible Preferred Stock   Immed.       N/A          Common Stock        115,647     N/A          I(2)      Through
                                                                                                                        Partnerships
Series G Convertible Preferred Stock   Immed.       N/A          Common Stock         71,007     N/A          I(2)      Through
                                                                                                                        Partnerships
</TABLE>

Explanation of Responses:

(2)  Except for Morgan Stanley Venture Partners III, L.P., Morgan Stanley
     Venture Investors III, L.P. and The Morgan Stanley Venture Partners
     Entrepreneur Fund, L.P. (collectively, the "Funds"), which hold the
     securities directly.
(3)  The Warrants are exercisable into Common Stock at anytime before their
     expiration at the election of the Funds.



**Intentional misstatements or omissions of facts constitute Federal Criminal
  Violations.  See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed.
      If space is insufficient, See Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.

                                                                     Page 2 of 4
                                                                 SEC 1473 (3-99)
<PAGE>

                            /s/Stephanie Holmes                  July 23, 1999
                           --------------------------------     --------------
                           ** Signature of Reporting Person          Date

                           By: Stephanie Holmes, authorized
                           signatory for Morgan Stanley Dean
                           Witter & Co. and Assistant Secretary
                           of Morgan Stanley Venture Capital III,
                           Inc. institutional managing member of
                           the Funds.

**Intentional misstatements or omissions of facts constitute Federal Criminal
  Violations.  See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed.
      If space is insufficient, See Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.

                                                                     Page 3 of 4
                                                                 SEC 1473 (7-99)
<PAGE>
                             Joint Filer Information

Each of the following joint filers has designated Morgan Stanley Venture Capital
III, Inc. ("MSVC III, Inc.") as the "Designated Filer" for purposes of Item 1 of
the attached Form 3:

          (1)   Morgan Stanley Dean Witter & Co. ("MSDW")
                1585 Broadway
                New York, New York 10036

          (2)   Morgan Stanley Venture Partners III, L.L.C., ("MSVP III,
                L.L.C.") 1221 Avenue of the Americas New York, New York 10020

          (3)   Morgan Stanley Venture Partners III, L.P. ("MSVP III, L.P.")
                1221 Avenue of the Americas
                New York, New York 10020

          (4)   The Morgan Stanley Venture Partners Entrepreneur Fund, L.P.
                ("Entrepreneur Fund")
                1221 Avenue of the Americas
                New York, New York 10020

          (5)   Morgan Stanley Venture Investors III, L.P. ("MSVI")
                1221 Avenue of the Americas
                New York, New York 10020

Issuer & Ticker Symbol: Allscripts, Inc.  (MDRX)

Date of Event Requiring Statement: 7/23/99


Signature:   /s/ Stephanie Holmes
            ---------------------------------------------------
            By: Stephanie Holmes, as authorized signatory for
            MSDW and Assistant Secreatary of MSVC III, Inc.,
            institutional managing member of MSVP III, L.L.C.,
            the General Partner of MSVP III, L.P., the Entrepreneur
            Fund, and MSVI

Page 4 of 4


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