The healthcare industry is in the midst of a substantial
shift away from traditional fee-for-service payments, which have historically
been associated with excessive and unnecessary care, in favor of value-based
options. In January, the Centers for Medicare and Medicaid Services reaffirmed
this fact when it announced a goal of having 50 percent of all Medicare
payments in alternative payment models by the end of 2018. MIT Holding, Inc.
(OTCQB: MITD), a leading provider of post-acute care nationwide, is in a strong
position to capitalize on this evolving mindset by providing ambulatory care,
in-home intravenous therapies, medical equipment and other recovery needs to
help patients avoid unnecessary doctor and hospital visits.
According to a report by Fox Business, the total reduction
in overall healthcare spending as a result of ambulatory surgery and therapy
options amounts to approximately $2.6 billion annually, and an additional $2.4
billion in savings could be realized if just 50 percent of eligible cases were
moved to these non-hospital settings. For MITD, these potential savings could
translate into improved financial returns in the coming months. Demand for the
company’s low cost, high quality home care is expected to rise as payers
realize up to 90 percent savings on infusion services performed in the home
instead of the hospital.
The potential market for MITD’s home infusion services is
vast. According to Harris Williams & Co., the United States home infusion
market is currently valued at $15.9 billion, and continued growth is expected
to push the market to $26.7 billion by 2020. In the first quarter of 2015, the
company made significant strides toward maximizing its share of this pivotal
sector by recording just under $490,000 in consolidated revenues, which was a
year-over-year increase of over 133 percent. Leveraging an increase in
referrals and the strategic use of subcontractors, MITD also realized a gross
profit of nearly $278,000 for the period.
“Our target audience is focused on those needing infusion
for recovery,” Tommy Duncan, president of MITD, stated in a news release. “Our
platform is based on the delivery of these high cost, specialty pharmaceuticals
that have specialized handling and administration requirements.”
For prospective investors, MITD’s strong financial results
in recent quarters, as well as the increasing demand for its value-based
services, could provide the company with a platform to deliver strong returns
moving forward. Look for MITD to continue building on its established position
within the ambulatory care market in order to capitalize on rising demand in
the years to come.
For more information on MIT Holding, visit
www.mitholdinginc.com
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