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Tiny Welligent Beats Netsmart to Nab Addictions Giant Phoenix House | Print |  E-mail
Addiction Treatment Industry Newswire

03/28/2012 -ATIN-A tiny "cloud" computing  electronic health record concern is in the process of rolling out its IT implementation accross several states after having beaten behavioral health information technology giant Netsmart to win one the biggest and most prestigious IT installations in addictions, industry giant Phoenix House, the nation's largest addiction treatment center, alcohol rehab and drug rehab. Welligent, a relatively small behavioral health specialty IT shop based in Norfolk, VA, beat out Netsmart after an exhaustive year and a half review process, according to Phoenix House CIO Mike Hailye who said that Welligent was willing to work on building a more customized IT experience for the multi-state treatment behemoth. Phoenix House had total revenues of $112M in 2010, $58M of which came from government contracts and $46M from client cash pay and commercial payors. Netsmart, which has grown largely through a series of acquisitions and whose IT product has been cobbled together by these acquisitions, is by far the nation's largest behavioral health IT provider, especially after its purchase late last year of Lisle, IL-based Sequest. As Phoenix House is busy with it's big implementation, the behavoral health IT world is gearing up for it's 12th Behavioral Health Information Management Confernce to be held next week in Holloywood, CA where almost 25 IT vendors are exhibiting, an indication of how highly fragmented the relatively small, but fast growing, behavioral health IT market is despite Netsmart's ongoing consolidation efforts. Welligent is a SAAS, software as a service, provider of solutions for the behavioral and physical health. SAAS has sprung up fast in recent years as cloud computing has caught on and, according to tech research firm Gartner Group, registed $10B in sales last year. Netsmart named former Cerner exec Michael Valentine to succeeed the controversial Jim Conway as CEO last year. Conway raised eyebrows when he took a seven figure payout at then much smaller Netsmart as the company was taken private years ago, prompting shareholder ire and accusations of insider privilege.

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