Athena Health Inc.ATHN

Morningstar Rating

Stock Research and Analysis

by Patrick Dunn

Health-care information technology companies like athenahealth continue to profit from increasingly complicated insurance processing rules, aging software, and government pressures. By the time health-care IT integration evolves from an elective procedure Read more

Bulls Say

Athenahealth's primary product, athenaCollector, boasts a 97% retention rate and high customer satisfaction feedback.

The health-care IT industry benefits from high switching costs.

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

Athenahealth's sales are directly related to health-care spending, which is expected to double by 2015. Read more

Bears Say

Many of athenahealth's competitors are more financially established and benefit from greater name recognition.

In the long run, point-of-service products from companies like Trizetto represent a threat to third-party intermediaries like athenahealth.

Athenahealth's services are highly susceptible to government regulation.

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

Strategy

Athenahealth is aggressively marketing its products to new clients and hopes to cross-sell its clinical offering to existing and new clientele. The company is in the process of expanding its offerings Read more

Management

Jonathan Bush cofounded athenahealth in 1997 and is CEO and chairman. We would prefer to see the two roles split, as this would provide additional oversight. Cofounder Todd Park was recently appointed chief technology officer for the Department of Health Read more

Profile

Athenahealth provides Internet-based business services to physician practices. Its principal offering, athenaCollector, is a continuously updated database that automates Read more

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