Athenahealth accepts incentives deal, picks Austin for expansion

Feb 3, 2014
Austin American Statesman

Athenahealth Inc. said Friday it has chosen Austin for an expansion of its research and development operations, and plans to create more than 600 jobs at the former Seaholm Power Plant building on West Cesar Chavez downtown

The announcement came after the Austin City Council late Thursday approved $679,500 in incentives over 10 years for the Massachusetts-based heath information technology firm, which also will receive $5 million from the state

Athenahealth has said the jobs — most of them to be hired locally and many of them high-paying software developer jobs — will pay an average annual wage of $132,085. The city said its incentive package — which is equal to $250 per new full-time job, per year — will result in a total net benefit to the city of $1.67 million

Athenahealth said it will make a total capital investment of $13 million in its new R&D center, which will be a 110,000-square-foot facility at the Seaholm redevelopment project. The company plans to hire 607 employees over the next 10 years, in addition to relocating its existing 36 Austin employees at Seaholm

Athenahealth previously said sites in Georgia and Massachusetts were in competition with Austin for the center

“We currently have U.S. offices in Massachusetts, Maine, Alabama, California, North Carolina, Georgia, New Jersey, and Texas,” said Holly Spring, director of communications for Watertown, Mass.-based Athenahealth. “Austin offers Athenahealth everything we could ask for in a city. It’s among the top tech hubs in the country and provides an unrivaled culture of innovation, creativity, and talent.”

Athenahealth provides cloud-based services to health providers to manage medical records, billing, patient communications and other functions electronically

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