Software malfunction caused EHR vendor Veradigm to overstate revenue by $20M

A software error caused Veradigm, the EHR vendor formerly known as Allscripts, to overstate its revenue by about $20 million over the past six quarters, the company said.

During its year-end audit, Veradigm noticed problems with a compliance software tool it implemented in the third quarter of 2021 that duplicated transactions, according to a Feb. 28 news release.

"The company has engaged external advisory services to fully quantify the past impact, review system changes, and recommend compensating controls to prevent and detect similar potential errors in the future," the release said.

As a result, the company revised its financial guidance for fiscal 2023 from expected revenue of $640 million to $660 million to $625 million to $645 million. Veradigm said reported cash flows aren't affected.

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