A recent
report (http://nnw.fm/K8iRV) on the global Healthcare IT (HIT) market from
Technavio projects an attractive seven percent CAGR for the space over the next
four years, when the U.S. sector alone will generate upwards of $75 billion
annually. The analysts at MarketsandMarkets affirmed this outlook in their
report on the sector late last year (http://nnw.fm/UO9j8), projecting that the
global healthcare IT market will see a CAGR nearly twice the Technavio figure
when all sources are accounted for, coming to represent a total market valued
at somewhere in the neighborhood of $228 billion by 2020.
The
biggest names in the industry today are looking to capitalize on this growth,
with players such as Athenahealth (NASDAQ: ATHN), Allscripts (NASDAQ: MDRX), GE
Healthcare (NYSE: GE), Mckesson (NYSE: MCK), Oracle (NYSE: ORCL), Philips
Healthcare (NYSE: PHG), and Siemens Healthcare (OTC: SIEGY) all making sizable
bets on the future of the space. Another important aspect of this growth story
is the proliferation of mobile devices, as the EHR (electronic health records)
landscape becomes increasingly saturated with mHealth features like mobile apps
and digital personal health records. Consider the installed base of some 2.6
billion smartphone users worldwide (http://nnw.fm/xtM0G), a figure set to grow
134 percent by 2020, and you can start to understand why the mobile medical workplace
is perhaps a foregone conclusion. North America, as the currently (and for the
foreseeable future) largest regional segment of the HIT space, is no doubt
where the majority of the global market’s action will be. So it makes sense to
start looking at competent, multiple-threat operators in the healthcare IT
market that are accessible to the average retail investor, and which have an
established footprint in the states.
Trading
under a dollar, with a rapidly growing portfolio of products and service offerings,
Medical Transcription Billing (NASDAQ: MTBC) (NASDAQ: MTBCP) for instance has
made some impressive headway in this sector since its IPO in 2014. The company
has rapidly blossomed into one of the most compelling full-spectrum,
cloud-based EHR (ChartsPro™), practice management (PracticePro™) and mHealth
solutions providers around. MTBC packs a powerful one-two punch of products and
services that collectively constitute a unified, database-driven and fully
integrated WebEHR platform, spanning everything from billing, data management,
transcription, chat scribing, and business intelligence, to value-added and
consultancy services. This is exactly the kind of one-stop-shop healthcare
customers in this market are looking for.
Founder,
chairman and CEO Mahmud Haq, as well as president and Director Stephen Snyder
and CFO Bill Korn, made quite a showing at the 2016 Marcum MicroCap Conference
(http://nnw.fm/Tu5j4) back in June, just before the launch of the company’s
hospital receivables management service via acquisition of New Jersey
healthcare financial specialists WFS Services. The WFS Services acquisition
superbly augmented the company’s already strong position in ambulatory
(outpatient) services and enables MTBC to aggress the huge opportunity of underserved
demand in patient balance collection and aged insurance accounts receivable. By
exploiting its unique technological advantages and vast sums of expertise in
order to serve the ominously compounding need for solutions to the nuanced and
often arduously difficult challenges of collection and aged insurance accounts
receivable, MTBC is setting itself up for long-term growth.
The
company has had a laser-focus on strategic growth toward its 2016 objectives,
scoring a spate of notably appropriate recent acquisitions, including
Renaissance Physician Services (Tennessee), Gulf Coast Billing (Texas), and the
WFS Services deal. And yet MTBC managed to wrap up Q2 with $6.6 million in cash
on the balance sheet. This an extraordinarily visionary approach to this space
for a relatively young company like Medical Transcription Billing, but
management can read the handwriting on the wall: the healthcare IT market is
only going to get hotter. Strengthening its already enviable position in the
sector through shrewd acquisition is how the company set a new milestone for
revenue growth from Q1 to Q2 this year, and the company hopes to continue this
trajectory on the strength of things such as having already developed a
comprehensive ICD-9 to ICD-10 mapping and transitioning solution.
And it is
not just the increasing complexity of the space that will allow full-spectrum
operators like MTBC to prosper amid all this demand growth. As new systems must
be rapidly defined and rolled out to handle an ever more stringent regulatory
environment, mounting demand for knowledgeable consultancy and expert services
will likely continue to increase at a geometric rate. Medical Transcription
Billing will prosper because its suite of offerings is able to deliver
considerably enhanced efficiency and profitability metrics, something which is
of paramount concern to everyone in the industry, as there exists a pressing
requirement to bring down overall healthcare costs.
A set of
common drivers behind all this demand growth are made strikingly clear in both
of the aforementioned reports. Chief among these drivers is the rise-and-rise
of EHR (electronic health records) solutions in general, spurred on by a
concomitance of actors, such as the prevailing lack of in-house IT capabilities
among most sector operators, the ease/robustness of cloud services, and the
inherently complex regulatory environment that just gets more nebulous with
each passing year. The MarketsandMarkets and Technavio reports mentioned
earlier were both keen to acknowledge how everything in the industry is
shifting toward external cloud and SaaS (software as a service) solutions. One
of the fastest growing segments of the HIT market is healthcare provider
solutions, where a projected 16.4 percent CAGR (MarketsandMarkets) shows just
how hot the game truly is when it comes to solving the regulatory
compliance/assurance woes that face today’s healthcare providers.
This is
an area where something like MTBC’s fully integrated Meaningful Use Stage
2-certified and web-based EHR platform ChartsPro really shines. ChartsPro gives
a practice everything required to easily execute a Meaningful Use Stage 2
implementation, including the necessary training, and the company even provides
an MU expert to each of its clients as part of its regulatory compliance
services package. Ranked among the best of the best by Utah-based health
informatics research outfit and industry benchmark KLAS, and certified by the
ONC (Office of the National Coordinator for Health Information Technology),
ChartsPro can handle all the critical functions of a medical practice and is
just the kind of highly intuitive, yet powerful framework that the clinical
solutions segment of the healthcare IT market now demands. Notably, this
segment has a projected 19.8 percent CAGR through 2020.
Whether
it’s chart creation backed up by the company’s digital transcription
technology, ChartScribe (a digital audio dictation to complete charts solution
which is fully integrated into the ChartsPro architecture), or a host of other
mission critical tasks, the web native ChartsPro platform is ideal for an
increasingly work-anywhere digital environment full of tablets, smartphones,
and other mobile devices. Correct and timely patient charts are essential at
every practice and ChartsPro handles this key task beautifully, while
delivering similarly excellent results when it comes to things like document
management, claim creation, e-prescription, lab test ordering, PHR handling and
scheduling.
The
consistently emerging PM (precision medicine) model of healthcare, which is
reinforced by a similarly emergent technical foundation and the need for
tailored medicine in areas like cancer, will continue to be a substantial
driver both for the HIT space, and for MTBC itself. This single market alone
will likely grow to nearly $88 billion by 2023 according to a report by Global
Market Insights (http://nnw.fm/Rb3vb), with factors such as genome sequencing
($8 billion last year), and new drug discovery playing major roles. The White
House has dedicated $55 million toward a new PM initiative, the industry has
responded, and now it will be up to operators in the healthcare IT sector to
pick up the ball and run with it. The explosion of diagnostics alone could send
a multiple-threat WebEHR outfit like MTBC into the stratosphere. It should be
interesting to see how things shake out for this aggressive young cloud-savvy
player.
For more
information, visit www.MTBC.com
About QualityStocks
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net
Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net
No comments:
Post a Comment