Popular Stories

Health Catalyst: Riding the “Data Analytics” Wave

28 Jan Health Catalyst: Riding the “Data Analytics” Wave

Healthcare Stocks have been in great demand since last year, be it online healthcare delivery, predictive healthcare services or SaaS for healthcare management. Health Catalyst Inc (NASDAQ: HCAT) is one of the leading provider of healthcare data and analytics that helps organizations achieve measurable clinical, financial and operational goals though use of its comprehensive solutions platform.

The Company caters to a diverse Blue Chip customer base with more than 125 customers from academic medical centers, integrated delivery networks, community hospitals, large physician practices, ACOs, health information exchanges, health insurers such as Acuitas Health, Alina Health, Aloha care, Banner Health, Integris, UPMC, John Muir Health to name a few.

HCAT’s solutions encompass three specific areas of data –informed improvement, namely services expertise, analytics applications and data platform that together offer a nearly $8 Billion in Total Addressable Market (TAM). The Company’s analytics applications are built using Domain-Specific Software Applications and cater to areas such as Activity-based Costing (CORUSÔ), Patient Safety (Patient Safety MonitorÔ), Care Management, Quality and Regulatory Measures and Revenue Improvement and Workflow Optimization.

Additionally, the Company also provides Foundational Software applications for Registries & Measures Authoring, Benchmarking (TouchstoneÔ) and Dashboards & Reporting (Leading WiselyÔ) and Tailored Analytics Accelerators.

Health Catalyst, (NASDAQ: HCAT)

Market Cap: $2.19B; Current Share Price: 51.50 USDChart
Data by YCharts

Industry
The U.S Healthcare system is estimated to be a $3.2 trillion market comprising of various stakeholders such as hospitals, insurance companies, medical equipment suppliers and pharmacies to name a few. The world is moving towards digitization at a fast pace, and healthcare is one industry where online services are making swift inroads, owing to their promise of convenience, transparency and cost–efficiency.

According to Stratistics MRC, the Global Healthcare Analytics market is expected to reach $32.4 billion by 2022, growing at a CAGR of 24.8% from $6.8 billion in 2015. The growth in this sector will be primarily fuelled by an increase in geriatric population, rise in lifestyle related diseases such as diabetes, the growing number of venture capital investments, the increasing information technology adoption by healthcare organizations and mandates and regulations by governments to safeguard patient privacy and data security. There are various kinds of analysis available such as descriptive, predictive, prescriptive and cognitive that aid healthcare organizations make informed and data-driven decisions.

There is a growing demand for saas-based platforms that can offer comprehensive solutions ranging from patient registration, electronic medical record systems, revenue cycle management and clinical support and help them realise operational efficiency, improve financial profitability and attain clinical goals. A report by UnivDatos Market Insights quotes a survey by the Society of Actuaries (SOA), which shows that over 60 percent of healthcare executives used predictive analysis, while 20% of providers and payers would be using predictive analytics in the near future.

Image Source: Company

Company
Healthcare Catalyst offers cloud-based data operating system (DOS™), analytics applications and service expertise to organizations, to enable them to reach data-driven decisions and achieve financial, operational and clinical improvements. The Company provides solutions for a wide gamut of areas such as revenue and cost management, quality control and monitoring, data analytics, payer contracts etc.

The Company leverages its Adaptive Data Architecture that offers an agile, flexible and faster implementation, to bring transformative changes to healthcare management. The Company’s unique ability lies in unifying the vast amount of data generated in the healthcare settings such as patient records, hospital records, co-morbidities that can otherwise be overwhelming to manage and interpret. Health Catalyst has risen to the occasion to tackle the COVID-19 pandemic head-on by developing a new range of products and services like Vitalware®: Mid-Revenue Cycle Solutions for COVID-19, Capacity Planning Tool, Rapid Response Analytics, Touchstone® COVID-19 National Data Sets and Patient Safety Monitor™ Application to name a few.

Healthcare Catalyst has been the recipient of various laurels such as Microsoft health Innovation Award 2020 for Improving Operational Outcomes, Best Companies to work for by Glassdoor, Utah Business and others. The Company caters to organizations of repute like Stanford healthcare, UPMC,  Acuitas Health, Allina Health, Aloha Care, Banner Health, Integris, Memorial and Northwell Health among others.

Long-Term Growth Strategy
The Company has established a highly recurring revenue model with more than 90 of its revenue being recurring in nature across technology, analytics and services streams. HCAT has continued to add new customers in spite of the pandemic’s impact and is targeting more than 20 percent growth rate for the long-term. The current focus is on expanding its customer base by not only selling additional application and services to its existing base but also increasing its overall customer base by adding new customers across verticals.

HACT has a High dollar-based customer retention rate of 109 percent and has witnessed its base grow from 34 customers in 2017 to 65 customers in 2019, which demonstrates a high customer retention and stickiness. The Company aims to increase this further by cross-selling DOS to both DOS and application-specific customers.

Furthermore the Company has developed 8 new software applications and has been acquiring complementary technologies thorough strategic acquisitions. HCAT is keen on expanding its addressable market, by its foray into the Life sciences market and other healthcare organizations, besides exploring new geographical locations.

Expansion
In September 2020, the Company acquired Vitalware, a revenue workflow optimization and analytics SaaS technology solutions provider, through a mix of cash and stock. Vitalware brings to the table a best in KLAS chargemaster management solution that offers complex regulatory and compliance functions, Revenue Integrity and Price Transparency.

In June 2020, HCAT acquired Healthfinch, which would enhance its clinical workflows in the EMR and bolster its portfolio of Population Health. Furthermore the Company also acquired Able Health, Inc. a SaaS-based provider of quality and regulatory measurement tracking and reporting.

In October 2020, HACT entered into multi-year strategic partnership with Middle East Healthcare Company (MEAHCO) to service six Saudi German Hospitals in the Kingdom of Saudi Arabia (KSA), which would be implemented by Topmed, its exclusive partner for the region.

Impact of Covid-19
Covid-19 has served as a wake-up call for organizations by highlighting the need for adoption of big data analytics. The healthcare analytics industry is likely to gain from more and more organizations turning to them for recovering from the impact of COVID-19 and achieving operational and financial goals. The collective data from these organizations can provide valuable insights into the impact and management of the pandemic and serve as a data bank for real-time insights.

HACT in particular has a highly recurring revenue model and estimates very minimal impact on its revenue due to the pandemic. The Company’s COVID-19 recovery solutions are in great demand; In fact the usage of its data & analytics solutions has increased by over 40 percents since the onset of COVID-19. However it is estimating a lower professional services dollar-based retention in 2020, additionally it is likely to see the impact of covid-19 related discounts, which may impact its revenue growth and gross margin.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Click here to please visit our detailed disclosure

References

https://neighborwebsj.com/uncategorized/1747400/global-healthcare-analytics-market-by-type-by-application-by-segmentation-by-region-and-by-country-2016-2022/

https://www.prnewswire.com/in/news-releases/healthcare-analytics-market-to-reach-us-118-2-billion-by-2027-globally-cagr-31-univdatos-market-insights-844214700.html

https://ir.healthcatalyst.com/static-files/eb8e02f5-351e-4937-bf77-63e98a0fc784

https://healthcatalystinc.gcs-web.com/news-releases/news-release-details/health-catalyst-announces-agreement-acquire-vitalware-revenue

https://healthcatalystinc.gcs-web.com/news-releases/news-release-details/health-catalyst-announces-agreement-acquire-healthfinch

https://healthcatalystinc.gcs-web.com/news-releases/news-release-details/health-catalyst-announces-agreement-acquire-able-health-leading

https://healthcatalystinc.gcs-web.com/news-releases/news-release-details/health-catalyst-enters-middle-east-brings-data-and-analytics

No Comments

Post A Comment

WordPress Video Lightbox Plugin