Hewlett-Packard’s (HPQ) HP Autonomy unit, in collaboration with Stanford Children's Health and Lucile Packard Children's Hospital Stanford, has developed HP Healthcare Analytics — an analytical platform.
HP Healthcare Analytics uses HP Autonomy's technology that enables pattern-matching, HP IDOL (Intelligent Data Operating Layer), and allows users, predominantly hospitals, to efficiently extract structured and unstructured clinical data.
The company estimates that the currently available healthcare systems can provide information on structured data (emergency room admission rates, bed occupancy and period of stay of a patient) but the vast amount of unstructured data (text in patient records, doctors' clinical notes, emails between doctors and patients and laboratory results), though digitized, are seldom available to healthcare providers.
This is one of the main issues that HP Healthcare Analytics addresses to provide relevant information to healthcare providers. Expansions in the healthcare analytics space bodes well for Hewlett-Packard which acts as the fiscal agent or the IT provider to Medicaid programs in 19 states. Moreover, the company provides data center services to the U.S. Department for Health and Human Services (HHS).
Notably, the Autonomy unit recorded double-digit growth in the last-reported quarter buoyed by the performance of IDOL and Data protector solutions. Moreover, H-P’s growing focus on new business segments, such as electronic medical records, cloud computing and the recently-added analytics segment will help it grow in ensuing quarters.
Nonetheless, the company has to compete with Computer Sciences Corp. (CSC) in the Medicaid service space. The company is still under pressure due to the weak PC market and sluggish macroeconomic environment. Competition from other technology bellwethers such as IBM Corp. (IBM) and Salesforce.com (CRM) makes it even more difficult to gain market share in the cloud and security space.
Currently, H-P has a Zacks Rank #2 (Buy).