CPSI Announces Formation of Evident, LLC

CPSI CPSI, a leading provider of electronic health record (EHR) systems and services, today announced the formation of Evident, LLC, a wholly owned subsidiary of CPSI. Evident will provide EHR solutions previously sold under the CPSI name as well as an expanded range of offerings targeted specifically at rural and community healthcare organizations. For more than 35 years, CPSI has been the leader in providing a fully integrated health information solution to rural and community hospitals. CPSI's comprehensive EHR, in conjunction with an implementation and support model targeted specifically to the unique needs of rural and community healthcare organizations, has led to CPSI's position as the leading provider of EHRs for that market. From its initial installation in 1981, CPSI's client base has grown to more than 650 hospitals in 46 states. More recently, since the inception of the national EHR adoption initiative under the American Recovery and Reinvestment Act (ARRA) of 2009, CPSI clients have consistently successfully attested to the Meaningful Use objectives at a far higher level than any of its competitors for both Stage 1 and Stage 2 of Meaningful Use. This success has only served to solidify the Company's position as one of the predominant EHR vendors in the industry and as the acknowledged leader in its market segment. The success of EHR adoption nationally under the auspices of the ARRA, in conjunction with other recent developments in the healthcare industry, led CPSI to a review of both the brand positioning of its EHR solution and broader market opportunities now presenting themselves. As a result, CPSI came to the conclusion that the creation of a new company offered the best opportunity to meet its strategic initiatives. The Company's objectives with the creation of Evident are to further define system and support differentiation in its core target market, broaden the positioning scope of its EHR solution and offer a new range of solutions to address current and upcoming needs of rural and community healthcare providers. "We are in a transitional time for healthcare on a number of levels," said CPSI President and Chief Executive Officer Boyd Douglas. "With the vast majority of hospitals and providers now utilizing certified EHRs, we believe it is vitally important to further differentiate our solutions and support model from those of our competitors as the market transitions to a replacement phase. While the success we've enjoyed under the auspices of CPSI is undeniable, we firmly believe the formation of Evident gives us the best opportunity to do that. With the establishment of Evident comes the introduction of our EHR under the new name, Thrive. Our Thrive EHR highlights our new development and our ability to address the entire care continuum with a single longitudinal patient record and a consistent, uniform user experience for physicians and other providers, no matter where care is being delivered. Even more importantly, our greatest strength has always been our customer support, and we have enhanced our model even further and have given our new approach its own name, LikeMind. In today's world, where hospitals and providers are transitioning from implementation to optimizing their EHR, we believe the quality, depth and scope of our client support services will be a critical aspect in differentiating Evident from our competitors." Douglas continued, "Also, while we've done incredibly well in hospitals under 100 beds, we firmly believe our Thrive EHR fully scales to meet the needs of those community hospitals in the 100-300 bed range, and we have the current clients to prove it. As Evident, we will be making a concerted effort to further penetrate these hospitals with the Thrive solution. With upcoming reimbursement changes, it is apparent these hospitals will be under increased financial pressure. We believe this will make our offering even more attractive to these hospitals as our total cost of ownership compares very favorably to other vendors commonly seen in these hospitals." Mr. Douglas will serve as President and Chief Executive Officer of Evident and will continue in those same positions for its parent company, CPSI. David Dye, Board Chairman and Chief Financial Officer of CPSI, commented, "Beyond our traditional space as an EHR provider, Evident gives us the opportunity to broaden our offerings to address those areas being driven by the changes taking place in healthcare delivery and reimbursement. For instance, our data analytics project in conjunction with IBM is well underway and will position us perfectly to offer predictive analytics solutions and services specific to rural and community hospitals and providers. While the effects of value based reimbursement and the necessity for population health management are just now being seen outside urban areas, there is no doubt they are coming to our market. As Evident, we are in a better position to give them tools specific to their needs, and that is just one example." Finally, in addressing plans for CPSI, Mr. Douglas said, "The creation of Evident as the company and brand for our EHR solution falls in line with our creation of TruBridge as our services company a little over two years ago. CPSI will continue its transition to a broader perspective as a healthcare company now that our information technology business has its own company and brand. As part of that transition, we will explore other opportunities outside information technology and services with a specific focus around rural and community healthcare."