Companies offering integrated health care IT product suites are the most likely to benefit from the near-term rush of IT purchase decisions by hospitals and physician practices. Health care providers are rushing to fulfill HITECH Act‘s stage one meaningful use requirements, says Steven P. Halper, Managing Director, Stifel, Nicolaus & Co., Inc.
“Hospitals and physician practices are accelerating purchase decisions for IT so that they can qualify for what we call stage one meaningful use incentive payments,” Halper said. “That program started a couple of months ago. So we see that hospitals and physicians are responding accordingly.”
Halper has a “buy” rating on athenahealth (ATHN), a health care solutions company offering an integrated cloud-based product suite. The company offers its athenaCollector product to create efficiencies in billing and its athenaCommunicator as a virtual liaison between health care providers and patients.
“We’re looking at 30% revenue growth with 30% or 40% operating margins,” Halper said. “athena is capable of significant earnings growth as it increases its market share. And I think the long-term future cash flow streams are not well reflected in the stock’s valuation at current prices.”
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