Why Athenahealth's CEO Doesn't Care If You Short the Stock

TL;DR

Athenahealth CEO unfazed by short selling, focuses on growth.

Transcript

you're in the house of Bloomberg who are our viewers they're investors some investors who are loving your pop last week but we've also got the David Ein horns of the world who in 2014 really went after you one of his most well-known shorts tell us about this growth strategy how are you winning how is he wrong uh well I don't know how he's wrong uh ... Read More

Key Insights

• Athenahealth has maintained a 30% growth rate since its IPO, driven by the increasing necessity for healthcare providers to move online.
• CEO Jonathan Bush is not concerned about short sellers, focusing instead on the company's growth and value creation for healthcare providers.
• The company's competitive edge lies in its early certification under the high-tech act, positioning it as a leader in healthcare technology.
• Athenahealth's revenue is primarily driven by its collector service, which has undergone extensive automation over 12 years.
• The newer population health service aims to efficiently identify and engage patients missing out on care, though it currently generates less profit.
• Bush emphasizes that Athenahealth's mission is to create a trusted healthcare internet, focusing on long-term goals rather than short-term stock fluctuations.
• Despite being a market leader, Bush expresses concern over potential customers opting for traditional software due to lack of awareness about Athenahealth's offerings.
• The CEO highlights the importance of staying centered on the company's mission, rather than being swayed by stock market dynamics.

Questions & Answers

Q: What is Athenahealth's growth strategy?

Athenahealth's growth strategy involves capitalizing on the increasing necessity for healthcare providers to move online. The company has maintained a 30% growth rate since its IPO by offering services that help doctors transition from paper to digital systems. Their focus is on creating value for healthcare providers through efficient and automated services.

Q: How does Jonathan Bush view short selling of Athenahealth's stock?

Jonathan Bush appears largely unconcerned about short selling of Athenahealth's stock. He emphasizes that his focus is on the company's growth and the value they provide to healthcare providers. Bush believes that if the company continues to grow and fulfill its mission, the stock price will eventually reflect that success.

Q: What gives Athenahealth a competitive edge in the healthcare market?

Athenahealth's competitive edge comes from its early certification under the high-tech act, which allowed it to become a leader in healthcare technology. This certification, combined with the company's focus on automation and efficient service delivery, positions Athenahealth as a preferred choice for healthcare providers looking to move online.

Q: What are the main revenue streams for Athenahealth?

Athenahealth's main revenue streams include its collector service, which has undergone extensive automation over 12 years, making it highly profitable. Additionally, the company offers a newer population health service aimed at identifying and engaging patients who are missing out on care, though this service currently generates less profit.

Q: What is Athenahealth's mission according to Jonathan Bush?

Jonathan Bush states that Athenahealth's mission is to create a trusted healthcare internet. The company aims to provide healthcare providers with the most reliable services for addressing their challenges and seizing opportunities. Bush stresses the importance of focusing on this mission rather than being distracted by short-term stock price movements.

Q: What concerns does Jonathan Bush have about the healthcare market?

Jonathan Bush is concerned about potential customers choosing traditional software due to a lack of awareness about Athenahealth's offerings. He is particularly worried about contracts being signed for outdated enterprise software when Athenahealth's cloud-based solutions could provide better value and efficiency for healthcare providers.

Q: How does Athenahealth's CEO plan to maintain the company's growth?

To maintain Athenahealth's growth, CEO Jonathan Bush plans to continue tapping into the frustration that healthcare providers have with traditional systems. By offering innovative solutions that address these pain points, the company aims to sustain its 30% growth rate and expand its market presence, particularly in hospitals and other healthcare facilities.

Q: What is the significance of the high-tech act for Athenahealth?

The high-tech act was significant for Athenahealth as it allowed the company to gain early certification, positioning it as a leader in the healthcare technology space. This certification enabled Athenahealth to capitalize on the federal push for electronic medical records, giving it a competitive advantage over newer entrants in the market.

Summary & Key Takeaways

• Athenahealth CEO Jonathan Bush discusses the company's robust growth strategy, emphasizing the shift of healthcare providers towards online platforms. He remains unfazed by short sellers, focusing on delivering value to healthcare providers and maintaining a 30% growth rate since the company's IPO.

• Bush attributes Athenahealth's competitive advantage to its early certification under the high-tech act, which positioned it as a leader in healthcare technology. The company's revenue is driven by its automated collector service, while newer services like population health aim to engage patients more effectively.

• Despite being the most shorted stock in its sector, Athenahealth remains focused on its mission to create a trusted healthcare internet. Bush expresses concern over potential customers choosing traditional software due to lack of awareness, but remains committed to long-term goals over short-term stock performance.