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HCA Healthcare Acquires Valify to Rein in Medical Costs

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HCA Healthcare, Inc. HCA has acquired Valify, a technology entity that emphasizes on reducing overall healthcare expenditure for clients. However, terms of the deal were not disclosed.

Rationale Behind the Acquisition

The Frisco, TX-based acquired company is a web-based technology platform that offers healthcare systems with in-depth research and greater understanding across a wide range of services.

HCA Healthcare expects to gain traction from Valify’s advanced analytics, technology and advisory services, which in turn, would help it manage resources in ancillary areas.

This strategic move is in line with the company’s aim to provide patient-centric care. With the growing usage of benchmarking, analytics and technology, the medical care sector too noticeably follows suit to benefit from such solutions.

Rise of Technology in the Healthcare Sector

The industry remains a promising platform for investment owing to surging demand for better health outcomes at affordable rates through usage of analytics, AI and other advanced technologies. Industry players are taking up initiatives to avail of technology for cost-cutting, providing advanced healthcare, etc.

Price Performance

Shares of this Zacks Rank #3 (Hold) have gained 14.7% in a year’s time, underperforming its industry's growth of 15.1%. This looks pale in comparison to its peers like Universal Health Services, Inc. UHS, which has returned 17% but convincingly outclasses Community Health Systems, Inc. (CYH - Free Report) and MEDNAX, Inc. MD, which have lost 34% and 23%, respectively, in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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