67 WALL STREET, New York - May 23, 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: Athenahealth, Inc. (ATHN), McKesson Corp. (MCK), Cerner Corp. (CERN), MedAssets, Inc. (MDAS), Computer Programs & Systems In (CPSI) and many others.
In the following excerpt from the Health Care IT Report, an expert health care IT stock analyst with over 20 years experience in the category discusses his top picks and the outlook for the sector for investors:
TWST: How much weight do you put on consolidation as you're developing theories within your coverage?
Mr. Mannheimer: Certainly it's a big part of my thesis. I follow 12 companies, and it's very reasonable that three or four years from now there will only be two left. McKesson (MCK) and Cerner (CERN) are the largest capitalized companies in my group. Consolidation remains a theme. I think that until recently, valuations and valuation expectations prevented a lot of deals from getting done, but now with the market resetting some valuations, I think it's prime for us to see some more consolidation.
TWST: Where are you pointing investors now? What are some of your favorite stories at the moment?
Mr. Mannheimer: Interestingly, some of my top picks are not necessarily directly related to some of the things we talked about, such as meaningful use. Vocera (VCRA) is an enterprise-wide mobile communications platform for health care. When you think about some of the big trends in health care IT, mobility is certainly in the top three. Vocera is the 800-pound gorilla in that space, though it's still an emerging market in health care. That stock has been negatively impacted by reductions in guidance during the prior fiscal year, which took some of the sentiment out of it. The valuation looks pretty attractive now, relative to their forecast for growth this year.
TWST: Have you been high on them for a while?
Mr. Mannheimer: Actually, I just picked up coverage of Vocera in February, so most of the damage had been done to the stock by that time. I have no hesitation to recommend it here. I also like MedAssets (MDAS), the revenue cycle technology and GPO provider. They are a direct beneficiary of the ICD-10 transition and the overall increasing complexity around reimbursement.
They have an interesting value proposition. On the one hand, they can drive revenue by capturing more charges and collections through their revenue cycle business. And on the other side, they can help reduce costs through more controlled and accurate supply purchasing through the GPO business. That kind of value proposition, obviously, is increasingly important in this age of health reform.
TWST: Anyone else?
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.