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Hill-Rom Adds New Capabilities to Centrella Smart+ Beds

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Hill-Rom recently announced integrating EarlySense’s continuous contact-free heart rate and respiratory rate sensing and analytics technology into its Centrella Smart+ bed platform. Notably, EarlySense is a prominent name in contact-free continuous monitoring solutions across the care continuum.

This integration will enable Hill-Rom’s Centrella bed to consistently monitoring heart and respiratory rates over 100 times per minute without having to touch the patient. The EarlySense technology is capable of warning clinicians of any potential patient deterioration events much in advance than the traditional monitoring methods.

Solid Market Prospects

According to a report by MarketsandMarkets, the global medical beds market is estimated to reach $3.41 billion by 2022, at a CAGR of 5.6% between 2017 and 2022. Going by the same report, technological advancements and growing expenditure on developing healthcare infrastructure, rising number of beds in private hospitals and growing chronic care patient population are expected to continue leading the growth of the medical beds market.

Given the bountiful opportunities in the global medical beds market, we believe the latest development will help Hill-Rom augment its share in the niche market and boost the top-line results in the near term.

Focus on Expansion Through Innovation

For quite some time, Hill-Rom stays focused on expansion through product development which is reflected in the company’s rising trend of research and development expenditure. Through fiscal 2018, new products generated more than $300 million in revenue. Within the Surgical Solutions business, Integrated Table Motion is gaining strong momentum of late. This apart, the Da Vinci XI Robot is registering robust performance.

In patient support systems, the company launched Hill-Rom Envella Air Fluidized Therapy Bed. Within the respiratory care business, it has introduced the Monarch Airway Clearance System. The company also recently announced the upgrading of its Welch Allyn Spot Vision Screener.

The company also launched a medical-surgical bed solution for hospitals named Hill-Rom Centrella Smart+ bed. This offers optimized patient safety, better patient satisfaction and latest caregiver-focused technology. Hill-Rom currently plans to expand its global reach with the launch of Centrella in the Middle East and Australia in 2019. In 2019, the company expects to generate more than $400 million in new product revenue.

Price Performance

In the past year, shares of Hill-Rom have outperformed the industry. Per the latest price movement, the stock has gained 13.6%, against the industry’s decline of 0.6%.

Zacks Rank & Key Picks

Hill-Rom currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .

Veeva Systems’ long-term earnings growth rate is estimated at 19.2%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Integer Holdings has an earnings growth rate of 30.3% for the year 2018 and a Zacks Rank #2 (Buy).

Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2.

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