Leading provider of advanced cloud-based data analytics and data-driven intervention platforms to the healthcare industry, Inovalon Holdings Inc. (INOV - Free Report) , recently announced that it has entered into a five-year agreement with UnitedHealth Group (UNH - Free Report) .
Per the agreement, Inovalon Holdings’ proprietary ONE Platform will be utilized by UnitedHealth. This would enable UnitedHealth to enable ultra-high speed analytics for better clinical quality outcomes insight and real-time data visualization within its Medicare Advantage and commercial membership nationwide. The engagement will help drive population health programs for more than 30 million members of UnitedHealthcare across the United States.
The use of the platform will bolster UnitedHealth’s health management business which includes aggregation of patient data across multiple health information technology resources along with the analysis of that data into a single, actionable patient record. This synthesized data can then be used to improve both clinical and financial outcomes.
Over the past three months, Inovalon Holdings has outperformed the industry. The stock has increased 19.1% compared with only 11.3% gain of the industry it belongs to.
Inovalon Holdings aims to make it big in the market for population health management which is anticipated to grow significantly in the coming years. The need for population health management is becoming imperative. The healthcare payment system is shifting from the one based on fee-for-service and volume of patients served to one based on value, improvements in patient health and associated decreases in healthcare costs.
Going forward, we are optimistic about continued advancements in Inovalon Holdings’ technology platforms, client base, expanding platform applicability and sales pipeline. Also, a long-term expected earnings growth rate of 19.07% and a projected sales growth of 20.95% instill some confidence in investors.
Inovalon Holdings is a technology company which provides cloud-based data analytics and data-driven intervention platforms for the healthcare sector. The company operates through IT and Services group.
Zacks Rank & Key Picks
Inovalon Holdings carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks in the medical sector are Edwards Lifesciences Corporation (EW - Free Report) and Amedisys, Inc. (AMED - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Amedisys carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 22.2% over the last six months.
Amedisys has a long-term expected earnings growth rate of 18.2%. The stock has gained around 5.3% over the last six months.
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