|WATERTOWN, Mass. -- athenahealth, Inc., the premier provider of online revenue cycle management services for medical practices, achieved record growth in 2005. athenahealth's growth highlights for 2005 include:
-- Year-end 2005 recurring revenue run rate in excess of $63 million
-- 44 percent increase versus end of year 2004
-- Added 227 new medical organizations (1,600 additional healthcare providers)
-- Customer attrition rate of less than 0.3 percent
"We are thrilled with the tremendous sales growth our team achieved in 2005. Our rate of growth is unprecedented in our space right now, but it is a space in deep need of rejuvenation, and we still feel we have much more growth yet ahead of us," said Jonathan Bush, co-founder and chief executive officer of athenahealth. "More than anything, these numbers are a testament to our customers who have taken the athena plunge - we know how hard it is to dare to be different and join the next generation, but they share our vision that the rewards will be great. I also want to mention that, as exciting as this new business is, we are even more proud of the old - in a business where our customer can leave us anytime without cause, we lost less than one third of one percent of our existing base in 2005, and for that we owe a deep debt of gratitude to the loyalty of our customers."
"Looking back at 2005, the big and the small really stand out," said Bob Hueber, senior vice president of sales at athenahealth. "This year we closed 14 deals worth more than $500,000 annually, but we also kicked off a very successful small practice initiative mid-year, which added more than 80 new customers in the one- to two-physician practice segment. By using a 'virtual' sales model and a revolutionary online implementation process with these small practices, we were able to keep upfront implementation and training costs very low, which has been one of the keys to success in that segment. We have high expectations for this market space in the years to come."
athenahealth has also had significant success with sales related to the beta program for athenaClinicals, athenahealth's answer to the electronic medical record (EMR). athenahealth enrolled 23 practices for the beta program, representing over 150 physicians.
Customers of note that were added in 2005 include: Vanguard Health Systems, Triangle Orthopedic Associates, North Florida Surgeons, Dimensions Healthcare System, TriHealth, MacNeal Health Network, HealthPartners Medical Group, Carolina Health Specialists, Arkansas Specialty Care Centers, Virginia Cardiovascular Specialists, and Bon Secours Virginia HealthSource.