MedAssets, Inc. (MDAS) is seeing potential for multiyear growth, as the company is providing hospitals with technology-enabled products and services that include useful tracking software and cost-saving Saas and cloud-based systems, says Leo Carpio, Senior Research Analyst at HM Global, LLC.
“The MedAssets story has two components: They are both revenue cycle management and supply chain. Revenue cycle management accounts for 40% of the business as a percentage of revenues. They provide software that helps the hospital with billing and tracking patients, everything from inpatient admission into ER all the way through the discharge. The software tracks the patient’s care, ensures that they’re properly billing for the patient’s care, and helps them get the best return and reimbursement possible,” Carpio said.
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MedAssets‘ supply chain management side is 60% of the business and uses analytical software to help hospitals reduce costs while improving outcomes, Carpio says. Additionally, because the company’s systems are SaaS and cloud-based, hospitals are seeing value with MDAS as they work to improve operating expenses.
“Because the system is SaaS, all these systems are SaaS and cloud-based, it’s system-agnostic. It can attach itself to any existing IT infrastructure, pull the data from it and deliver the necessary data analytics. That means hospitals don’t need to rip and replace their existing IT investments; they just buy the needed modules and then reap the benefits,” Carpio said. “Because MedAssets products are SaaS-priced, it’s mostly viewed as an operating expense. Since hospitals are going to be focused on improving operating expenses and the top line over the next decade, I can easily a multiyear growth track for this company.”
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