CVS Health Corporation CVS, a leading name in retail pharmacy, recently announced that it has chosen Epic as the electronic health record (EHR) system for CVS Specialty's care management programs. This announcement expands the company’s use of the Epic EHR system beyond MinuteClinic, which was transitioned to the system in 2015.
The adoption of Epic will help integrate and improve clinical processes for CVS Specialty, including the Accordant division, which provides care management program services for patients with rare, chronic diseases.
Epic is the widely used EHR in the U.S., which will support CVS Specialty's evidence-based care management programs. The system will also provide connectivity with health care providers nationwide that currently use the same. Epic interoperability exchanges 1.3 million records daily with thousands of organizations via various national and regional networks including hospitals, clinics and providers.
CVS Health Corporation Price
CVS Health Corporation Price | CVS Health Corporation Quote
Management believes that implementing Epic EHR will allow the company to coordinate across health care disciplines, thus uplifting immediate information sharing system with other health care providers across the patient's entire care team.
According to recent statistics, specialty pharmacy is one of the fastest growing health care segments in the U.S. Nearly 3 million people in the country are currently in need of specialty treatment while the potential cost of treatment tends to be very high. CVS Specialty offers modern clinical services for patients who require treatment for rare or complex conditions. The services provided are drug therapy management, disease education and counseling, dispensing and infusion services and adherence management in order to achieve positive health results.
Moreover, CVS Health claims that being the specialty pharmacy of choice for many payors and patients, the company is focused on creating the most clinically advanced specialty pharmacy experience to help improve care and outcome for its patients. We expect the selection of Epic EHR system to help the company achieve its objective in the near term.
CVS Health has been performing well for quite some time. In the last one month, the company has been trading above the Zacks categorized Retail - Pharmacies and Drug Stores industry. The stock has gained 6.1% over the time frame, compared to the broader industry’s addition of 5.4%.
Notably, in the recently concluded fourth quarter of 2016, the company witnessed 17.9% year-over-year sales growth in its Pharmacy Services segment, benefiting from the upside in the Specialty Pharmacy business. Since the company’s specialty business remains a top priority for customers, we believe CVS Health is well positioned to capitalize on that opportunity based on its broad and differentiated offerings under this portfolio.
Zacks Rank & Key Picks
CVS Health currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector are Inogen, Inc. INGN, Bovie Medical Corporation BVX and Neogen Corp. NEOG. Inogen sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained over 100% in the last one year in comparison to the S&P 500’s gain of 19.5%. The company has a stellar four-quarter average earnings surprise of over 49.08%.
Bovie Medical surged 76.5% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 28.7%.
Neogen gained 24.3% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
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