Allscripts provides software products for physician practices and hospitals. Why would covid 19 cause such a revenue decrease that 5% are laid off, all travel is eliminated,no longer using contractors , no raises till next year etc? It seems like the products would still be doing well during this time. Is this just an excuse to decrease expenses?
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Bottom line, Allscripts got greedy and stopped innovating. The reduction in Force is not because of COVID 19 but Covid gave us a convenient excuse.
All In?! More like All Out!
How is Allscripts exceeding its sales targets in an environment like this? I get the idea of closing a sale now, but not getting paid/recognizing revenue until later. I guess I'm just surprised that Allscripts closed many sales in Q120 at all since COVID must have shut all sales activity down for the entire month of March.
Let’s not forget clients are not paying there bills. In fact, many doctors & nurses also forced into salary reductions.
All in
Don’t see as much activity on epic or cerner’s boards
fyi. closer to 10% in the last four weeks. that is counting just layoffs and not counting furloughs. the 5% layoffs advertised were done in one day but there were groups let go more than that.
TBH, 5% isnt really all that bad, especially considering the current state of the market and the dive our stock price took. What's really worth questioning is the number of executives who cashed in just before the market tanked. That smacks of insider information and should be reported and investigated by the SEC.
I was recently laid off. from a position with visibility to Allscripts finances. I can attest to the fiscal dire straits the company was and currently is in. In my opinion there are numerous reasons for the layoffs. 1) Poor fiscal management from Senior Leadership. 2) operational inefficiencies across the organization, 2) sales bookings vs. revenue recognition. Allscripts exceeded sales targets in Q120, but doesn't see revenue associated with those sales until products and services are delivered through a long implementation process 3) COVID-19 precipitated elimination of many hospital services financially impacting revenue for nearly all of Allscripts clients resulting in them not paying their obligations to Allscripts - hospitals are laying off and furloughing significant numbers. If the hospital is a hosted Allscripts client, Allscripts needs to continue to pay ATOS for hosting services whether or not the client is paying - turning off that clients hosted solution is effectively shutting down the hospital 4) Again COVID-19 caused a significant number of Allscripts clients to either not start projects, suspend in-flight projects, or defer activations - this resulted in a large stagnant services workforce with much of their planned work suspended indefinitely - this correlates directly to employees being laid off - support staff, implementation project staff, solutions, and others. 5) Allscripts has been carrying a significant debt burden, and with the current revenue outlook moving forward without changes to expenses would continue to increase debt pressure. Not trying to discount claims in other posts, but there are a lot of reasons for the layoffs and furloughs.
boost workforce efficiency? Let’s cut our hours of work to compensate for the pay cut. Spend that time with your family. Is is not fair that PB and LK collect millions and we are suffer from the lose. The company is dead! This payout is just the last nail to the coffin.
They're just using the pandemic as an excuse to layoff resources and boost workforce efficiency.
They let go of experienced, smart, knowledgeable workers because those are the people they are paying the most to just like any other company. The next wave will remove other people. Now on top of all the extra work people have to pick up to make up for the people they let go is that all business process stuff in SFDC is being heavily monitored and reports generated nightly on it and delivered to upper management. I've been through this before here and at other companies in HIT and IT, where everyone has to account for their work by closing cases or opening cases or documenting every minute of every day. Never mind that these metrics are apples and oranges and don not show what work is really being done. A analyst in Bangalore can close 500 cases in SFDC a month because she is just changing passwords or pushing paperwork to another group but a Dev might only close a case a day because she is chasing bugs or adding features the work is completely different but the only thing managament cares about is the number of cases done. When the next round of cuts comes it is going to be the low case number people who go because that is the only tihng mangement cares about now. They never look at what really works and what really doesn't and they don't care about what damage they do to a team even crippling it because it does not matter to them. This is why SDO is totally broken and every one else is struggling to keep everything working.
What doesn’t make sense is why let go of so many VERY experienced and knowledge folks and leave behind others who have so little experience (some still there have been with Allscripts less than a year). Some of the ones that are gone can run circles around who are still there.
It's not just greed - it's sheer incompetence, outright mismanagement, muddled "strategy", and plain old human stupidity on top of greed.
The austerity measures (travel, hiring, merit increases, etc...) and layoff planning were in the works LONG before CoVID-19 ever became a concern. They had the clipboard-toting finance-company "consultants" wandering the halls and combing through the records at the beginning of the year - the same people who told them to cut $100M out of the budget, which of course meant layoffs. Allscripts has been a troubled company for a long, long time - and they consistently and regularly do what they can to shave costs by eliminating the most experienced and useful people while retaining the boot-lickers and management types with stock portfolios. This most recent bloodbath is just another in a long line of purges going back well over a decade, and came as a surprise to absolutely NOBODY.
The advent of CoVID-19 is having a bad effect on the company (and economy as a whole) but it's serving a purpose as a convenient scapegoat for the company failing to properly do business.
To be fair - look at the impact that CoVID-19 is having on healthcare systems across the country. Most of them are NOT overwhelmed, but are definitely having revenue problems of their own because without "elective" and "non-life-threatening" procedures in play they are not getting the income they would normally be getting. They are all reducing staff (including doctors and nurses) and reducing pay in order to stay solvent - and that means they're also not going to be paying their bills in a timely fashion either. If they're not paying vendors (like Allscripts) the vendors will be taking financial hits as well regardless of how utilized or valued their products are - and vendors simply can't "turn off" their products for lack of payment because that's not how it works in healthcare.
You said it all. The company is using this as an excuse for the poor performance. During this crisis you would expect EHR systems and reporting tools increase. Allscripts does not have the talent left to assist their clients through this. This is just a company waiting for bankruptcy or be bought out for the client base.
It's all about greed.