During the last quarter of the year, healthcare stocks, among other things has received a lot of attention. The midterm elections have made this a prominent fixture at the forefront of the United States’ decisions for who to choose as their state representatives.
Now that the dust has settled, the markets can weigh in. Healthcare technology has remained a big target for industry experts as the aging population and millennial generation has created a unique dynamic for companies within the space.
Current “brick and mortar” businesses are evolving as well. Some are even leveraging existing technology from some of the companies discussed below.
CVS Health (NYSE:CVS)
Take CVS Health (NYSE:CVS) as an example. The company’s retail medical clinic, MinuteClinic has begun to roll out a virtual health care offering. Similar to Users can seek care through the MinuteClinic Video visit for things like minor injuries, cold, flu, etc.
CVS has leveraged the technology platform from another health technology company, Teladoc (TDOC) to offer this service through the CVS Pharmacy app. The video visit costs $59 and according to CVS, insurance coverage will be added in the coming months. The service is now available in 16 states including Arizona, California, Delaware, Florida, Idaho, Kentucky, Louisiana, Maine, Maryland, Mississippi, Nebraska, New Hampshire, Rhode Island, Utah, Vermont, and Virginia as well as Washington D.C.
In the company’s most recent earnings call, Cowen and Company Analyst James Auh asked, “Can you talk about how Teladoc affects your clinical strategy and when we should expect a full-blown rollout?”
CVS President Larry J. Merlo explained the focus on telehealth technology specifically in stating, “As you mentioned, we’ve been rolling it out state-by-state. There are some state processes that we’re going through to turn them on and once we get more of a critical mass, we will begin broader marketing of that. As you look at the complementary strategy to the clinics, it has the opportunity to expand our reach as well as expand our scope of practice. And those are the use cases that we’ve been piloting.”
Teladoc (NYSE:TDOC)
As for Teladoc (NYSE:TDOC), the company has remained steadfast in expanding reach with CVS. On their earnings call, Jason Gorevic, CEO and Director explained, “On a direct-to-consumer front, we continue to roll out our integrated product offering with CVS Health, adding another 8 states last month to bring the total to 18 states plus Washington, D.C. This is a seamless experience for consumers entering through the CVS app and an integral part of CVS Health’s commitment to delivering high-quality care when and where patients need it at prices they can afford. We look forward to expanding the scope of our relationship with the MinuteClinics and moving ahead with insurance reimbursement.”
Allscripts (NASDAQ:MDRX)
Other companies like Allscripts (MDRX) are helping to lead the way in healthcare information technology solutions. The company focuses on things that advance clinical, financial and operational results. Allscripts solutions connect people, places, and data across an Open, Connected Community of Health™. The company integrates client information so they can take action across care sites, care teams and across multivendor electronic health record systems.
East Kent Hospitals University NHS Foundation Trust has recently gone live with the Allscripts patient administration system. According to the announcement, “East Kent Hospitals extended its initial engagement with Allscripts by contracting for Sunrise in December 2016. Maidstone and Tunbridge Wells did the same in August 2018. Nearby Medway NHS Foundation Trust is also an Allscripts PAS customer.”
Medical Transcription Billing Co (NASDAQ:MTBC)
Also this month, Medical Transcription Billing Co (NASDAQ:MTBC) made headlines. The company announced financial and operational results for the first nine months of 2018 along with an update to its guidance for the year. This included doubling in scale and delivering its sixth consecutive quarter of positive adjusted EBITDA, while generating a record $2.8 million in cash from operations.
Stephen Snyder, CEO said, “For full year 2018, we’re on track to grow our revenue, year-over-year, by more than 50%, while increasing our full year adjusted EBITDA by approximately 100%. Moreover, our latest acquisition has further demonstrated the power of our unique model and a disciplined approach to identifying, acquiring, and integrating complementary businesses – and with positive cash from operations and a record total of more than $20 million in cash and availability on our line of credit, we’re better positioned than ever to continue investing in our growth.”
Medical Transcription Billing Co is a healthcare information technology company that provides a fully integrated suite of proprietary, cloud-based healthcare IT solutions and services, to healthcare providers practicing in ambulatory care settings.
Evolent Health, Inc. (NYSE:EVH)
Evolent Health, Inc. (NYSE:EVH) was no exception to the dynamic momentum that healthcare technology has been receiving this year. Evolent, a company providing an integrated value-based care platform to the nation’s leading health systems and physician organizations, and SOMOS IPA announced that Evolent will support the SOMOS IPA network in its operations as a Value-Based Payment Innovator in the New York State Department of Health’s Innovator program.
As announced by the New York State Department of Health, SOMOS IPA has received a new contracting designation as a Value-Based Payment Innovator. The Innovator program is intended to encourage and reward early adoption of Value-Based Payment arrangements, supporting groups who have invested in moving toward population health management. With its Innovator designation, SOMOS aims to transform the communities it serves by reintroducing the family doctor and strengthening the bond between doctor and patient.
“We are honored to work with SOMOS to put primary care at the forefront of the value-based care delivery system to address the unique challenges of its Medicaid population,” said Evolent Health President Seth Blackley.
Seeing the amount of market opportunity being presented for healthcare technology companies like those listed could present new opportunities for investors looking at what the healthcare industry has in store.
Featured Image: EdZbarzhyvetsky
