Omnicell Widens Customer Base

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Omnicell Inc. (OMCL), provider of end-to-end automated solutions for medication-use process, has expanded its customer base as Springhill Medical Center selected it as its exclusive provider for medication management solutions. Mobile, Alabama-based Springhill Medical Center is a hospital with 252 beds.

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, Springhill Medical Center will deploy Omnicell’s G4 and Anywhere RN remote medication management system to better manage its hospital.

The decentralized pharmacy model on G4 platform is expected to result in reallocation of nursing hours in patient care. This should lead to improvement in the hospital’s operations and nursing workflow. Moreover, the hospital expects to increase standards of patient care with a less labor-intensive method of medication management.

In a bid to standardize its management solutions, the hospital will also deploy Omnicell’s well-regarded Pandora business analytics solutions. Pandora analytics will provide valuable insights into the clinical operations of the hospital and curtail medication-associated administrative errors.

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.

We currently have a long-term Neutral recommendation on the stock which carries a Zacks Rank #3 (Hold). CareFusion Corporation (CFN), a major player in the medication management and supply chain solutions market, carries a Zacks Rank #2 (Buy).

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