3M Company’s MMM business unit, 3M Health Information Systems, recently rolled out 3M M*Modal CDI Engage One — an advanced software for 3M 360 Encompass System users.
Developed with the help of advanced AI and natural language understanding technologies from 3M and its acquired M*Modal business (February 2019), the latest software provides clinical insight to clinical documentation improvement (CDI) experts, clinicians and coding teams on a real-time basis. Notably, the AI tools will provide physicians with precise and complete clinical story by streamlining document creation. This will help in improving patient care, quality outcomes and help organizations in achieving revenue integrity.
Developed on a single, cloud-based platform, CDI Engage One is compatible with the 3M 360 Encompass System, which has a large customer base in healthcare market. The combined use of CDI Engage One and 3M 360 Encompass will allow users to boost back-end CDI processes’ efficiency apart from saving hours of manual review for streamlined CDI queries, CDI worklist prioritization and clinical evidence-based documentation study.
3M intends to become more competent on the back of product portfolio solidification. The company’s value model that comprises four priorities — Portfolio, Innovation, Transformation, and People and Culture — will help strengthen margins. In sync with its Portfolio priority, the company acquired the technology business of M*Modal — a prominent healthcare technology provider of conversational AI-powered systems. This buyout has been strengthening the company's Health Information Systems business. Notably, M*Modal assets generated revenues of $75 million in the second quarter of 2019.
However, rising cost of sales has been a major cause of concern for 3M over the last few quarters. On a year-over-year basis, the company's cost of sales escalated 1.7% and 2% in the first quarter and second quarter of 2019, respectively. Inflation in the prices of raw materials had primarily resulted in the increase.
3M currently carries a Zacks Rank #3 (Hold). In the past month, the company has returned 4.1%, almost on par with the industry’s growth of 4.3%.
Stocks to Consider
Some better-ranked stocks from the same space are Federal Signal Corporation FSS, Carlisle Companies Incorporated CSL and Danaher Corporation DHR. While Federal Signal and Danaher sport a Zacks Rank #1 (Strong Buy), Carlisle carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Signal surpassed earnings estimates in each of the preceding four quarters, the average surprise being 16.48%.
Danaher outpaced earnings estimates in each of the preceding four quarters, the average surprise being 3.25%.
Carlisle outpaced earnings estimates thrice in the preceding four quarters, the average surprise being 17.16%.
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