HCA Healthcare (HCA) Invests in VitalConnect's Remote Monitoring
HCA Healthcare, Inc.’s HCA investment arm, Health Insight Capital, invested in remote monitoring and biosensor technology company VitalConnect. The fund will likely be utilized in VitalConnect’s cardiac monitoring business. The investment amount is yet to be disclosed.
HCA Healthcare’s investment is expected to expand remote monitoring of patients with heart failure, COPD, sepsis and other diseases. The investment is likely to advance technology in the medical space, helping patients as well as professionals. VitalConnect is witnessing rapid physician adoption. The latest investment is expected to speed up the process.
The investment from HCA is also expected to enhance the remote patient monitoring platform. The biosensors from VitalConnect help physicians provide real-time in-hospital and remote monitoring, which optimizes care delivery. The process is expected to boost accuracy and efficiency in the medical space.
After bearing the brunt of the pandemic, revenues of HCA Healthcare are bouncing back, given a surge in admissions, outpatient surgeries and other procedures. As such, investing in technologies like biosensors is a prudent move for the company. VitalConnect’s biosensors are present in Northwell Health, Brigham and Women’s, Hackensack Medical Center, and many other locations around the world.
HCA Healthcare invests in technology to have a competitive edge. Apart from investing in technologies like biosensors, it has been gaining from its telemedicine business line. Given the current scenario, we expect this business to continue performing well because of high demand. To expand its presence, HCA acquired a 40% interest in a telemedicine company.
Price Performance
Shares of HCA Healthcare have declined 13.7% in a year compared with the industry’s fall of 18.3%.
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Zacks Rank & Key Picks
HCA Healthcare currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical space are Molina Healthcare, Inc. MOH, Akumin Inc. AKU and Alignment Healthcare, Inc. ALHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Molina Healthcare’s earnings is pegged at $17.66 per share, indicating a year-over-year increase of 30.4%. MOH beat earnings estimates in each of the past four quarters, with an average surprise of 3.2%.
The Zacks Consensus Estimate for Akumin’s revenues indicates an 80% increase from the prior-year reported number. AKU has witnessed one upward estimate revision and no downward movement in the past 60 days.
The Zacks Consensus Estimate for Alignment Healthcare’s 2022 bottom line indicates a 29% year-over-year increase. ALHC's earnings beat estimates in three of the last four quarters and missed once, the average surprise being 7.9%.
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