Health Care IT Stock Picks: A Wall Street Transcript Interview with Garen Sarafian, Citigroup Investment Research & Analysis' Healthcare Technology & Distribution Analyst

Wall Street Transcript

67 WALL STREET, New York - May 12, 2014 - The Wall Street Transcript has just published its Health Care IT Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Health Care - Affordable Care Act - Electronic Health Records Implementation - Healthcare IT Consolidation Trends - Data Analytics - Population Health Management

Companies include: MedAssets, Inc. (MDAS), Cerner Corp. (CERN), Athenahealth, Inc. (ATHN), Quality Systems Inc. (QSII), Allscripts-Misys Healthcare So (MDRX), Computer Programs & Systems In (CPSI) and many others.

In the following excerpt from the Health Care IT Report, an award winning equity analyst from Citigroup discusses the outlook for the sector for investors:

TWST: Please give us an overview of your coverage universe.

Mr. Sarafian: The sector is health care technology and distribution. It covers at least three to four subsectors. The PBMs and distributors, which are sometimes combined into one subsector; the CROs are another subsector; and then there are also of course the health care IT names that get bucketed under health care technology and distribution as well.

TWST: The latter is going to be our focus. What's your overall sentiment on this space today and why?

Mr. Sarafian: I like the space, but I'm a bit more selective than perhaps previously. The reason why I say selective is that I just think that there will be a more diverse set of winners and losers in the next couple of years than in the last couple of years. I think that on the hospital side, the displacement opportunities are going more toward the winners in the space at the expense of those that I consider will be not so favorably impacted, and the same thing with the physician side.

As we go through the next major phenomenon when it comes to health care IT, which is data analytics - also often bucketed under the population health management phrase - I think that that is also going to lead to more winners as well as some losers.

TWST: Is there anything else you would add in terms of the main trends that you are following, trends that are affecting these companies' businesses?

Mr. Sarafian: It's all about the data analytics. I think that the electronic medical record market for both the inpatient and the outpatient setting - even more so for the inpatient setting - has become more of a commodity. That goes with our theme that the winners will have successful EMRs that they can continue to sell to the displacement opportunities that arise and that are still quite prevalent, actually, for the next two years. But they also need to be strong in these next-generation data analytical tools.

So our view is that the successful companies, the winners from a company perspective, will be those that have both...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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