Veradigm Inc. Reports $86.4 Million Net Loss and $588 Million Revenue for 2022

Veradigm Inc. (formerly Allscripts Healthcare Solutions, Inc.) reported a net loss of $86.4 million for the year ended December 31, 2022, compared to a net income of $139.6 million in 2021. Total revenue for 2022 was $588.0 million, a 1.8% increase from 2021. This increase was driven by a 23.3% rise in Payer and Life Science revenue, which offset a 2.6% decrease in Provider revenue. The company attributed the decrease in Provider revenue to lower subscription, maintenance, and client services revenue, partially offset by increased upfront software and transaction-related revenue.

Significant changes compared to the prior year included a 51.4% increase in selling, general, and administrative expenses, primarily due to increased legal costs and bad debt expense. Research and development expenses increased by 16.4%, reflecting increased investment in Veradigm products. The company also recorded non-cash asset impairment charges totaling $7.5 million. The company's effective tax rate was -68.6% in 2022, compared to 19.0% in 2021, primarily due to the release of a valuation allowance. The company also reported a significant loss from discontinued operations, primarily related to the sale of the HLPP business in May 2022.

During 2022, Veradigm completed the sale of its HLPP business to Altera Digital Health Inc. for $670 million. Other key developments included the issuance of a patent for its Dynamic Intervention Planning technology, a partnership with Vytalize Health to integrate its solutions into Practice Fusion EHR, and the achievement of a 2015 ONC Health IT Update Certification for Veradigm EHR. The company also changed its name from Allscripts Healthcare Solutions, Inc. to Veradigm Inc. in January 2023 and announced investments in Holmusk and ScienceIO. The company also experienced a systems disruption in July 2024 due to a CrowdStrike outage and noted the impact of the Change Healthcare cybersecurity incident on its customers in the first and second quarters of 2024.

Veradigm's financial statements for 2021 and portions of 2022 were restated due to misstatements resulting from internal control failures. The restatement decreased revenue from continuing operations for the year ended December 31, 2020 by $10.4 million, increased revenue for the year ended December 31, 2021 by $3.4 million, and decreased revenue for the nine months ended September 30, 2022 by $13.7 million. The restatement also impacted net earnings and diluted earnings per share for the affected periods. The company's principal executive and financial officers concluded that its disclosure controls and procedures and internal controls over financial reporting were not effective as of December 31, 2022, and a remediation plan is underway.

Veradigm's outlook is focused on remediating identified material weaknesses, becoming current with SEC reporting obligations, executing its strategy of delivering end-to-end solutions, and potentially relisting its common stock on a national securities exchange. The company also noted that macroeconomic conditions, including inflation and high interest rates, may affect customer demand. The company is implementing a plan to streamline customer-facing processes, improve its go-to-market approach, and capture operational cost efficiencies. The company also initiated a process to explore strategic alternatives to maximize stockholder value in 2024, ultimately deciding to pursue a standalone strategy. The company's common stock is currently quoted on the OTC Expert Market.