Veradigm's (MDRX) New Tie-Up to Boost Patients' Health Outcomes
Veradigm Inc. MDRX recently announced a strategic collaboration with On Belay Health Solutions. The tie-up aims to support primary care providers in improving patients’ health outcomes while strengthening their practices’ financial foundation.
On Belay Health Solutions is a company engaged in empowering primary care practices to succeed in value-based care.
The latest partnership is expected to strengthen Veradigm’s advanced solutions and solidify its foothold in the niche space.
Rationale Behind the Tie-Up
The shift from a fee-for-service healthcare delivery model to a value-based care model has significantly altered the healthcare delivery and reimbursement process in the United States. Veradigm’s solutions are expected to aid in promoting value-based care initiatives for healthcare providers and the patients they serve. Through On Belay Health Solutions, Veradigm Network’s primary care physicians (PCP’s) are likely to improve patient outcomes and the care team experience.
Veradigm’s management believes that the partnership with On Belay Health Solutions will provide the Veradigm Network value and, thereby strengthen primary care practices.
Per On Belay Health Solutions’ management, the latest collaboration will likely offer its high-touch platform to the Veradigm Network PCPs. This, in turn, is expected to provide a robust, high-touch care management approach to support the successful transition to value-based care, irrespective of the stage in the healthcare journey.
Industry Prospects
Per a report by InsightAce Analytic, the global value-based healthcare services market was valued at $6.07 billion in 2022 and is anticipated to reach $32.69 billion by 2031 at a CAGR of approximately 20.8%. Factors like the rising usage of mobile apps and real-time analytics and the advent of digital technology are likely to drive the market.
Given the market potential, the latest tie-up will likely provide a significant impetus to Veradigm’s business.
Notable Development
In July, Veradigm signed two multi-year healthcare provider agreements during the second quarter of 2023. It expanded its agreement with the State of Franklin Healthcare Associates, whereas Total Orthopedics and Sports Medicine contracted for Veradigm Revenue Cycle Services, Veradigm Payerpath, Veradigm Guided Scheduling and Veradigm FollowMyHealth to enhance their patient experience and billing process.
Price Performance
Shares of Veradigm have lost 12.2% in the past year against the industry’s 12.8% rise and the S&P 500’s 20.3% growth.
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Zacks Rank & Other Key Picks
Currently, Veradigm carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, McKesson Corporation MCK and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita has gained 16.4% while the industry remained flat over the past year.
McKesson, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average of 8.1%.
McKesson has gained 30.1% compared with the industry’s 23.1% rise over the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Integer Holdings has gained 28.3% compared with the industry’s 4.6% rise over the past year.
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DaVita Inc. (DVA) : Free Stock Analysis Report
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McKesson Corporation (MCK) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
