A recent client win by MedAssets, Inc. should help further propel investor confidence in the stock. On a year-to-date basis, the company has returned an impressive 40.7% to its investors.
Riverdale, Ga.-based Southern Regional Medical Center (“SRMC”) has entered into an agreement with MedAssets to improve its operating as well as financial performance. The hospital will be using MDAS’ Accounts Receivable (A/R) Services and revenue cycle consulting expertise to manage aged receivables and liquidate cash more efficiently.
As per the agreement, SRMC will engage MedAssets A/R Services to maintain as well as enhance its net cash collections, as it installs a new fully integrated revenue cycle platform, including an electronic health record and physician order entry modules. SRMC will outsource its aged receivables management to MDAS, on an ongoing basis, so that management can fully focus on implementation and training for the new system.
MedAssets provides web-based workflow technology that helps mitigate increasing financial pressures faced by hospitals, health systems, and other non-acute healthcare providers. Management asserts that its full suite of solutions is capable of improving client operating margins by 1.5%-5.0% by increasing revenue capture, reducing supply costs and improving clinical resource utilization. The company’s client-base boasts over 4,200 acute care hospitals and more than 122,000 ancillary or non-acute provider locations.
Earlier, The Texas Purchasing Coalition (TPC) renewed its performance management relationship with MDAS. The contract extension builds on the former’s success in realizing more than $90 million in documented savings since 2010.
Currently, MedAssets has a Zacks Rank #3 (Hold). While we choose to remain on the sidelines regarding MDAS, other better-performing medical services stocks include Omnicare Inc. , Covance Inc. and Quintiles Transnational Holdings Inc. (Q - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).