eClinicalWorks GetsTax Relief from Both State and Town

On Tuesday, May 17, just three days after Westborough voters approved a tax increment financing (TIF) plan to presumably keep eClinicalWorks in town, Gov. Deval Patrick was at the Westborough facility for a ribbon-cutting ceremony to celebrate the company’s newly expanded headquarters. He credited tax incentives from the Commonwealth for assisting eClinicalWorks to expand at the Technology Drive location. 

“By partnering with companies like eClinicalWorks, we are supporting the innovation that creates the jobs of tomorrow right now and reduces health care costs over the long term,” said Governor Patrick in a statement. 

Both the Commonwealth of Massachusetts and the Town of Westborough offered notable tax incentives to eClinicalWorks, reportedly protecting 400 jobs and creating 200 new jobs for the electronic health records provider. 

At the Annual Town Meeting on May 14, the TIF plan in Article 14 was introduced to voters as a way to keep eClinicalWorks in town. According to a statement by Town Manager Jim Malloy, eClinicalWorks “was considering moving out of town when the town became involved and negotiated an agreement to keep them in town where they moved to a larger building and undertook substantial renovations.” 

According to a statement from Governor Deval Patrick’s press office, “The Patrick-Murray Administration’s Economic Assistance Coordinating Council awarded the company (eClinicalWorks) a total of $1.56 million in investment tax credits through the Economic Development Incentive Program last spring. This investment from the state helped facilitate the purchase and renovation of the company's headquarters at 2 Technology Dr. (in Westborough). In exchange, eClinicalWorks pledged to create 130 new jobs, retain 400 jobs and invest $18.1 million in the project. The company has already exceeded that number, creating 200 jobs and continuing to grow.” 

The $1.56 million in investment tax credits from the state which helped facilitate the purchase and renovate the Technology Drive facility was not mentioned at the Westborough Annual Town Meeting. However, notes to voters from the Advisory Finance Committee (AFC) report indicate "eClinicalWorks committed to and began work on their expansion plan without final Town Meeting approval, which demonstrated a show of good faith in their plan to keep jobs in Westborough."

During discussion on the article, voters were encouraged to support the Tax Increment Financing (TIF) Plan by recommendations from both the Board of Selectmen and AFC. The plan includes an exemption for eClinicalWorks on paying property tax to Westborough over five years. The plan cuts the tax responsibility as follows: 50 percent in year 1, 40 percent in year 2, 30 percent in year 3, 20 percent in year 4, and 10 percent in year 5. This is the first TIF for the Town of Westborough. 

Prior to voting on Article 14, residents expressed concern about offering TIF to eClnicalWorks. “This is a dangerous precedent to set to give businesses tax breaks,” said Steven Buttiglieri of Thomas Newton Drive. 

Girish Kumar Navani, CEO and co-founder of eClinicalWorks told voters that his customers enjoy the Westborough location because "they like the proximity to the Courtyard and DoubleTree hotels."

The vote in favor of Article 14 was not unanimous, but it passed with a majority vote.

“We work hard to make sure that our customers have the resources and education required to take advantage of incentive programs, including the federal stimulus reimbursement for demonstrating meaningful use of electronic health records," said Navani in a statement. "We are honored to have Governor Patrick as our guest today and look forward to continued growth.”