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Omnicell, Huron Sign a Pact for Outcome-Based Expert Services

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Omnicell, Inc. (OMCL - Free Report) recently made a significant progress with implementation of professional IT services within medication management and adherence. The company has partnered with global professional services firm Huron to provide outcome-based professional solutions for customers adopting Omnicell technology. However, financial terms of the deal have been kept under wraps.

Per the company, these days, healthcare systems are facing challenges to optimize operations, improve clinical outcomes and deliver a more consumer-centric healthcare experience.Accordingly, the requirement for this kind of professional IT services in the field of medication management and adherence is rising by the day.

However, growing complexity of technology induces more scope for mishaps, pitfalls and mismanagement, causing overall failure of the project. According to a study by the IT Research firm The Standish Group, only 29% of healthcare IT projects is considered successful.

Recognizing this scenario and realizing the importance of a seamless implementation and integration experience, Omnicell has involved Huron to offer customers dedicated expertise. Per the company, this will help drive faster adoption of Omnicell technology solutions and achieve better clinical plus financial outcomes.

Industry Prospects

Going by a Grand View Research report, the global medication management market was valued at $1.20 billion in 2016 and is expected to see a CAGR of 20.5% between 2018 and 2025. The key drivers of the market are higher investments by hospitals in enhancing workflow, rapid advancement in medical technology and deepening focus on lessening medication errors.

Given the increasing potential of the market, the company's recent pact with Huron seems timely and strategic.

Recent Developments in This Line

Omnicell signed a sole source partnership agreement with Med Center Health in October to streamline and secure its medication management process. In the same month, Omnicell forged an alliance with Mercy (one of the top five U.S. health systems serving Arkansas, Kansas, Missouri and Oklahoma) to support medication management across Mercy’s service network through Omnicell Automation and Intelligence solutions.

Omnicell teamed up with Salem Health Hospitals & Clinics in October for better safety and efficiency in the latter’s medication management processes through the Automation and Intelligence solutions of the former at the flagship Salem Hospital in Salem, OR.

Price Performance

Shares of Omnicell have gained 14.4% in the past year compared with the industry’s 11.5% growth.

Zacks Rank & Other Key Picks

Currently, Omnicell carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , National Vision Holdings, Inc (EYE - Free Report) and ResMed Inc (RMD - Free Report) .

Haemonetics currently has a Zacks Rank of 2 and a projected long-term earnings growth rate of 13.5%.

National Vision’s long-term earnings growth rate is estimated at 17.8%. The company is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ResMed’s long-term earnings growth rate is expected at 12.9%. It currently flaunts a Zacks Rank #1.

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