Omnicell Inc. (OMCL) continues to expand its customer base. Recently announced, this provider of end-to-end automation solutions for medication-use process will provide its G4 Unity medication management solutions to all 14 affiliated hospitals comprising Baptist Memorial Health Care.
The affiliate hospitals, including more than 2,300 licensed hospital beds, are situated all over the mid-south region. The hospitals under Baptist Memorial Health Care plan to switch to G4 Unity solutions in a three-phase process across the system.
The initial implementations at Baptist Memorial Health Care will encompass OmniRx G4 Automated Medication Dispensing Cabinets, Pandora Analytics, Anesthesia Workstation and Controlled Substance Management System (CSM).
Omnicell serves a niche market that is expected to grow further as it continues to gain more clients. With the growing demand for more efficient medication administration, there is bound to be a greater demand from hospitals to deploy Omnicell’s G4 and Pandora Analytics. Pandora analytics will provide valuable insight into the clinical operations of the hospital and curtail medication-associated administrative errors.
Omnicell’s solutions are compliant with cartfill as well as cartless models of medication distributions. This will support the switch at Baptist hospitals as the affiliates presently use both centralized as well as decentralized drug distribution systems.
Currently, an increasing number of institutions are planning to shift to the automated mode to improve workflow and medication management. Further, the shortage of nursing facilities in the U.S. should drive demand for automated solutions for medication and supply solutions.
Omnicell also stands to benefit from demographic tailwinds as well as higher investment in the healthcare industry. However, lower capital expenditure by hospitals as they battle reimbursement cuts and budget constraints remains a looming concern for the company.
Omnicell carries a Zacks Rank #2 (Buy). Other medical stocks that warrant a look are Myriad Genetics Inc. (MYGN), Conceptus Inc. (CPTS) and Cyberonics Inc. (CYBX). These stocks carry a Zacks Rank #1 (Strong Buy).
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