In line with its strategy to boost position in the Digital Health space, Hill-Rom (HRC - Free Report) recently partnered with Microsoft Corporation (MSFT - Free Report) , one of the largest broad-based technology providers in the world today. The companies have collaborated to make advanced, relevant and actionable point-of-care data and solutions that can be availed by healthcare providing organizations and caregivers.
Collaboration in Detail
The partnership will bring together Hill-Rom's extensive clinical knowledge as well as streaming operational data from medical devices and Microsoft's cloud , also including Azure IoT and Azure Machine Learning.
The collaboration will drive improved patient outcomes by dynamically analyzing real-time sensing data from medical devices and historical medical record information. It will also aid in delivering potential patient risk related information and hospital protocol actions directly to caregivers at the point of care.
Notably, Hill-Rom digital solution offerings will be made available to hospitals later in 2019.
Solid Market Prospects
Digital transition is accelerating demand for IT service solutions in healthcare. Robust adoption of technologies is enhancing management of billing, quality measurement and reporting, clinical documentation and data exchange, patient communication and referrals as well as many other related tasks.
Going by a report published by Global Market Insights, the digital health market is expected to see a CAGR of around 28% between 2018 and 2024. Considering the company’s efforts, we believe that it is well-positioned to gain from the favorable trend in the niche space.
Hill-Rom’s Progress in Digital Health Space
Hill-Rom has recently launched its smartphone application — Linq mobile. Per the company, the platform has integrated Clinical Workflows with Nurse Call and clinical surveillance in monitoring systems to enhance care team communication and efficiency. Per management, this move will pave the way for an additional market opportunity of around $200 million.
The LINQ mobile application is initially available in the United States and Canada. Hill-Rom will be expanding Linq’s reach to Europe and other regions in 2019.
In the past year, shares of Hill-Rom have outperformed the industry. Per the latest price movement, the stock has gained 5.8%, against the industry’s decline of 7.2%.
Zacks Rank & Key Picks
Hill-Rom carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) and Surmodics, Inc (SRDX - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2 (Buy).
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