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Veradigm's (MDRX) Acquires Koha Health to Solidify Market Presence
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Veradigm Inc. (MDRX - Free Report) recently announced its strategic acquisition of Koha Health, a full-service revenue cycle management (“RCM”) company. This move is likely to solidify Veradigm's position in the ambulatory healthcare market and underscore its commitment to delivering comprehensive revenue cycle services.
Veradigm is actively strengthening its end-to-end revenue cycle services portfolio. This move aligns with the company's vision to provide comprehensive solutions to clients, unlocking additional market opportunities. The integration of Koha Health's resources is expected to enhance MDRX's ability to deliver efficient revenue cycle services, ultimately adding significant value to its clients.
Price Performance
Shares of Veradigm have lost 37.7% in the past year against the industry’s 42% growth. The S&P 500 grew 24.4% in the same time frame.
Image Source: Zacks Investment Research
Strengthening the Revenue Cycle Services Portfolio
The acquisition strategically positions Veradigm to broaden its capabilities and depth in the ambulatory healthcare sector. By incorporating Koha Health's Musculoskeletal Medicine (“MSK”) specialty subject matter expertise, Veradigm aims to bolster its network and improve service delivery to ambulatory healthcare providers, including practices and ambulatory surgical centers (“ASCs”) utilizing various electronic health record (“EHR") systems.
Veradigm believes the acquisition to be a strategic fit that will help the company to scale its revenue cycle services portfolio. By capitalizing on Koha Health's capabilities, Veradigm aims to create synergies that lead to expanded growth opportunities, cost savings and improved service delivery. This strategic alignment is designed to cater to the evolving needs of the ambulatory healthcare market.
Koha Health's expertise in MSK brings valuable specialization to the Veradigm Network. This addition fortifies Veradigm's ability to provide tailored revenue cycle services to ambulatory healthcare practices and ASCs. The incorporation of diverse EHRi systems further enhances Veradigm's adaptability and effectiveness in addressing the unique challenges of ambulatory healthcare providers.
MDRX's end-to-end revenue cycle services portfolio, enriched by Koha Health's capabilities, aims to deliver enhanced value to clients and unlock new opportunities in the ever-evolving ambulatory healthcare landscape. The companies believe that there will be strategic synergies resulting from the acquisition that include expanded growth opportunities, enabling cost savings and improved service delivery.
Industry Prospects
Per a report by MarketsandMarkets, the global patient engagement solutions market was estimated to be worth $17.3 billion in 2022 and is anticipated to reach $27.9 billion by 2027 at a CAGR of 10%. Factors like high demand for patient engagement solutions, increasing healthcare initiatives to promote patient-centric care and growing utilization of m-health apps are likely to drive the market.
Given the market potential, the latest offering will likely provide a significant impetus to Veradigm’s business.
Notable Developments
In November 2023, Veradigm announced a new solution, Veradigm Intelligent Payments — a bundle of financial communications and payment solutions — that is now available within Veradigm Payerpath via a collaboration with RevSpring. The company, through the new solution, aims to help increase payment rates, accelerate time to payment and reduce manual reconciliation time for healthcare providers.
In October, Veradigm announced that it is the first major EHR network to join the FDB (First Databank, Inc.) Vela ePrescribing network. It will be integrating the FDB Vela ePrescribing network into its available solutions for users and partners, including its EHRs and the Veradigm ePrescribe Enterprise solution.
The same month, Veradigm and Holmusk, in a press release, jointly announced the next stage in their strategic collaboration. The collaboration leverages the strengths of each company to drive innovation in behavioral health and help make advancements in the field.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Biodesix (BDSX - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 42.7% in the past year compared with the industry’s 9.6% growth.
Biodesix, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 32.3% for 2024. BDSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.76%.
Biodesix’s shares have lost 13.2% in the past year compared with the industry’s 3.2% decline.
Integer Holdings, holding a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 43.5% in the past year against the industry’s 3.7% decline.
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Veradigm's (MDRX) Acquires Koha Health to Solidify Market Presence
Veradigm Inc. (MDRX - Free Report) recently announced its strategic acquisition of Koha Health, a full-service revenue cycle management (“RCM”) company. This move is likely to solidify Veradigm's position in the ambulatory healthcare market and underscore its commitment to delivering comprehensive revenue cycle services.
Veradigm is actively strengthening its end-to-end revenue cycle services portfolio. This move aligns with the company's vision to provide comprehensive solutions to clients, unlocking additional market opportunities. The integration of Koha Health's resources is expected to enhance MDRX's ability to deliver efficient revenue cycle services, ultimately adding significant value to its clients.
Price Performance
Shares of Veradigm have lost 37.7% in the past year against the industry’s 42% growth. The S&P 500 grew 24.4% in the same time frame.
Image Source: Zacks Investment Research
Strengthening the Revenue Cycle Services Portfolio
The acquisition strategically positions Veradigm to broaden its capabilities and depth in the ambulatory healthcare sector. By incorporating Koha Health's Musculoskeletal Medicine (“MSK”) specialty subject matter expertise, Veradigm aims to bolster its network and improve service delivery to ambulatory healthcare providers, including practices and ambulatory surgical centers (“ASCs”) utilizing various electronic health record (“EHR") systems.
Veradigm believes the acquisition to be a strategic fit that will help the company to scale its revenue cycle services portfolio. By capitalizing on Koha Health's capabilities, Veradigm aims to create synergies that lead to expanded growth opportunities, cost savings and improved service delivery. This strategic alignment is designed to cater to the evolving needs of the ambulatory healthcare market.
Koha Health's expertise in MSK brings valuable specialization to the Veradigm Network. This addition fortifies Veradigm's ability to provide tailored revenue cycle services to ambulatory healthcare practices and ASCs. The incorporation of diverse EHRi systems further enhances Veradigm's adaptability and effectiveness in addressing the unique challenges of ambulatory healthcare providers.
MDRX's end-to-end revenue cycle services portfolio, enriched by Koha Health's capabilities, aims to deliver enhanced value to clients and unlock new opportunities in the ever-evolving ambulatory healthcare landscape. The companies believe that there will be strategic synergies resulting from the acquisition that include expanded growth opportunities, enabling cost savings and improved service delivery.
Industry Prospects
Per a report by MarketsandMarkets, the global patient engagement solutions market was estimated to be worth $17.3 billion in 2022 and is anticipated to reach $27.9 billion by 2027 at a CAGR of 10%. Factors like high demand for patient engagement solutions, increasing healthcare initiatives to promote patient-centric care and growing utilization of m-health apps are likely to drive the market.
Given the market potential, the latest offering will likely provide a significant impetus to Veradigm’s business.
Notable Developments
In November 2023, Veradigm announced a new solution, Veradigm Intelligent Payments — a bundle of financial communications and payment solutions — that is now available within Veradigm Payerpath via a collaboration with RevSpring. The company, through the new solution, aims to help increase payment rates, accelerate time to payment and reduce manual reconciliation time for healthcare providers.
In October, Veradigm announced that it is the first major EHR network to join the FDB (First Databank, Inc.) Vela ePrescribing network. It will be integrating the FDB Vela ePrescribing network into its available solutions for users and partners, including its EHRs and the Veradigm ePrescribe Enterprise solution.
The same month, Veradigm and Holmusk, in a press release, jointly announced the next stage in their strategic collaboration. The collaboration leverages the strengths of each company to drive innovation in behavioral health and help make advancements in the field.
Veradigm Inc. Price
Veradigm Inc. price | Veradigm Inc. Quote
Zacks Rank & Stocks to Consider
MDRX carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Biodesix (BDSX - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 42.7% in the past year compared with the industry’s 9.6% growth.
Biodesix, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 32.3% for 2024. BDSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.76%.
Biodesix’s shares have lost 13.2% in the past year compared with the industry’s 3.2% decline.
Integer Holdings, holding a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 43.5% in the past year against the industry’s 3.7% decline.