Aledade CEO and former National Coordinator Farzad Mostashari, MD, MSc observes that Constellation had a rare (and large) misfire in paying $700 million in 2022 for the hospital and large practice business of Allscripts that it renamed Altera, only to have its biggest customer Northwell announce soon afterward that it was moving to Epic. Constellation highlighted Altera’s dramatic revenue slide in its most recent quarterly report. Mostashari adds that healthcare software is a good fit for Constellation and the total addressable market is huge – he notes that the Allscripts business that they didn’t buy, which is ambulatory and Veradigm, is worth just $1.1 billion but will generate $100 million of free cash flow this year – but EHRs require more product development to keep up with regulatory changes.
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MP is fine - he'll just blame Professional Services for Northwell.
Harris had their equivalent of Forrest Gump run the due diligence.
The Northwell miss is a lack of due diligence by Harris. How can one ignore the deals largest revenue generation component?