Eclipsys CorporationECLP

Morningstar Rating

Stock Research and Analysis

by Patrick Dunn

The health-care IT evolution has slowed as hospitals have tightened their purse strings, but Eclipsys' relatively affordable subscription-based offerings and increased outsourcing should enable the company to reap the benefits of increased private and Read more

Bulls Say

The health-care IT business often comes with switching costs, which offer the potential for an emerging economic moat.

Government and private-sector pressures on hospitals to integrate information technology solutions should spur sales.

The likely expansion of Medicaid will place extra pressure on hospitals and physicians alike to improve operating margins.

Recent international implementations should spur futher growth abroad. Read more

Bears Say

Eclipsys has a highly concentrated customer base, with about 38% of accounts receivable attributable to 20 clients.

Eclipsys' name recognition in the marketplace remains low. Marketing campaigns aimed at increasing name recognition can be a drain on resources.

Patient privacy concerns could lead to legislation that will require new and costly measures to protect electronic health records. Read more

Strategy

Eclipsys has been perceived primarily as a vendor of clinical solutions. The company has launched a campaign to expand its capabilities and brand-name recognition. Furthermore, the company plans to continue Read more

Management

Philip Pead was appointed president and CEO in May 2009. Before joining the company, he held several executive positions at other health-care services companies. We would prefer to see the two roles split, as this would provide additional oversight. Read more

Profile

Eclipsys provides information technology that supports the functional areas of health-care delivery and revenue management at hospitals. Its products enable physicians to Read more

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