HCA Holdings, Inc. (HCA - Free Report) declared that it has inked a deal to buy PatientKeeper®, a leading software and mobile applications provider that enables physicians easy access and work with patients’ information.
Following this announcement, the stock gained 1.44% and closed at $73.12 with 0.14 million shares exchanging hands over last few trading sessions.
Massachusetts based PatientKeeper, is a privately held company that provides software offering the physicians a single view of their patients’ information, integrated from multiple systems across a hospital, and easily accessible on computers and mobile devices. This helps to improve patient care and save time.
HCA Holdings affiliated 164 hospitals are already using PatientKeeper over a period of seven years. This deal will benefit HCA’s electronic health record with consistent development and will add additional Patientkeeper applications to provide physicians computerized physician order entry (CPOE), medication reconciliation and documentation facilities.
With this agreement, HCA Holdings has taken a major step to facilitate doctors in relating to patients’ electronic health records and document care. The acquisition will result in advanced usability, quality, effectiveness and better care. The combined companies are expected to continue to improve and expand PatientKeeper’s product offerings.
PatientKeeper’s present President and Chief Executive Officer is expected serve as the CEO of the organization post acquisition. The company will operate as a wholly owned subsidiary of HCA Holdings and retain its 160 employees. Its headquarters will be at Massachusetts from where it will be serving over 100 clients and also marketing its products.
The deal will likely be completed by late 2014 and the amount of consideration to be paid by HCA Holdings was left undisclosed.
This deal is an important move by HCA Holdings to expand and enhance its healthcare services. This generated optimism, as reflected in the upward revisions in the Zacks Consensus Estimate, which rose 1.9% to $4.21 for 2014 and 5.1% to $4.74 for 2015 in the last 60 days. The long-term growth is targeted at 11.3%.
Currently, HCA Holdings carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Investors interested in the medical-hospital sector could also consider stocks like Universal Health Services Inc. (UHS - Free Report) , Community Health Systems, Inc. (CYH - Free Report) and Lifepoint Hospitals Inc. . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Community Health Systems and Lifepoint Hospitals carry the same rank as HCA Holdings.