Athenahealth posts 13% revenue jump in 2017
- Athenahealth reported total revenue hit $1.2 billion in 2017, 13% growth over 2016.
- CFO Marc Levine attributed the top line growth to a 15% increase in providers on its network.
- Though revenue was up, consolidated bookings decreased in 2017 to $293 million, down from $348 million in 2016. The company's stock rose 9.8% at market open on Friday.
Athenahealth restructured its workforce and product offerings in 2017 in an attempt to propel growth this year. The company expects helping clinicians ease administrative burden through platform tools to be a large selling point as healthcare providers feel financial pressure.
Throughout 2017, athenahealth set out to tighten operations, cutting 9% of its workforce, selling its corporate jet and closing its San Francisco office. CEO Jonathan Bush on an earnings call said the company also made efforts to improve customer service and smoothed out a release schedule for clients.
The company focused on core areas in 2017, including expanding product services, improving nationwide connectivity and going after the hospital market.
Bush told investors the company's database architecture was revamped with the goal of adding functionality to remove administrative burden on clinicians.
"The ability to eliminate administrative cost is a valuable arrow to have in your quiver," Bush said on the call.
One, a national scheduling service, has already been been deployed within athenaNet. More are in the works. For example, CTO Prakash Khot recently told Healthcare Dive a future service will include a directory to connect patients and providers to each other.
On the earnings call, Bush admitted the company was short on its bookings goal and after years of rapid growth, demand in 2017 was weaker than expected.
Still, he expressed confidence more customers will connect into athenaNet in 2018, driven into the market by financial pressures. Athena plans on positioning their suite of micro-services as a selling point to lure customers.
Of note, Bush doesn't think MACRA/MIPS will drive market activity because of the volume and timing of payment reimbursement.
The company will provide its 2018 guidance at its investor summit on Feb. 15.
Follow Jeff Byers on Twitter