Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Health IT Stocks: A Good Long-Term Bet?

By  +Follow June 26, 2013 10:55AM
Tickers Mentioned:

Efforts to encourage the use of electronic medical records, or EMR, have existed since at least 1996 when the Health Insurance Portability and Accountability Act was passed with the intention of more effectively combatting insurance fraud. Along with the Affordable Care Act (ACA) this previous legislation has been bolstered by the Physician Quality Reporting Initiative that seeks to incentivize physicians and hospitals around the country to adopt a modernized medical records system.

Bloomberg recently reported that the U.S. ranks only 7th among industrialized nations in terms of its adoption of EMR, with 69 percent of physicians claiming to have used the electronic system in 2012. But one can only imagine that the number will increase, and that it will do so in the short-term; according to Accenture research, the $24 billion dollars in revenue generated globally by the industry in 2012 is set to increase some 10 percent a year through 2015.

Even a precursory look at some of the publicly traded companies that have become involved in the IT side of the health industry would seem to corroborate this. McKesson Corporation (MCK), is one such example. The $25.7 billion market-cap company is trading at $114.82, up 22 percent over the last 12 months.

The same can be said for Cerner Corp. (CERN), a $16.33 billion market cap company with shares at $96.35, up nearly 20 percent on the year, as well as Allscripts Healthcare solutions (MDRX), a $2.2 billion market cap company trading at $12.75 per share and up over 25 percent in the past year.

EMR seems to be the inevitable way of the future for how medical records are kept, and a host of other developed countries are way ahead of the U.S. in effectively utilizing them. But there have been a number of controversies that have arisen along with the increasing adoption of digitized records in the U.S. since the ACA was first approved in 2010.

Reports have surfaced that harmful and at times lethal doses of drugs have been administered to patients due to human error in the process of data entry and network delays in updating medical information. A December study from the Pennsylvania Patient Safety Authority found that over an 8-year period, 3,099 incidents of medical errors due to difficulties with electronic records were reported. 1,142 of those incidents were reported in 2011 alone, more than twice the number that were reported in the previous year.

Furthermore, companies that design EMR software are not beholden to any form of government oversight in the way that, say, medical equipment makers are forced to report injuries and deaths resulting from the use of their products. There have also been privacy concerns with regard to how a patient’s medical information may be sold for marketing purposes.

That said, some 200,000 deaths per year are the result of medical malpractice, with a great number of these resulting from preventable errors, including those involving a patient’s health records. EMR errors appear to be most common when a hospital first changes over to an electronic system, but there is plenty of evidence to suggest that a properly functioning EMR system actually helps to reduce these errors, and along with them, the resulting financial burden on the health care system in general. And this could mean that health IT stocks have a bright future ahead of them indeed.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for CERN
Michael James
30 Jul 15 08:56:24
After A MASSIVE 525% Gain On $GEQU, We Have A New Pick Ready! Special Update: http://t.co/wFGuoXnIev $SYMC $CERN $ATVI
Paul Henry
30 Jul 15 08:51:00
Our Penny Stock Picks Have Gained 3,600% In 10 Months! Get Early Access To Our Next Pick: http://t.co/xXdYdpiHOc $SYMC $CERN $ATVI
Healthcare Dive
30 Jul 15 08:45:04
@DeptofDefense announces long-awaited winner(s) of $4.3 billion contract to overhaul Military Health System... http://t.co/qkQpmvfrqS $CERN
Market Int Center
30 Jul 15 08:39:26
Cerner $CERN Showing Resistance Near $79.13 ( http://t.co/MxnCjAGDhS )
30 Jul 15 08:02:02
$CERN: Wall Street analysts bullish on CERN's earnings growth: http://t.co/y75NI98UnR http://t.co/b13skl3ZfE
30 Jul 15 08:00:00
Active Stocks in Review: Pfizer, Inc. Common Stock HBAN $CERN
30 Jul 15 07:52:52
Active Stocks in Review: http://t.co/vftfIO4yl2 $PFE HBAN $CERN
Kiran Nandavarapu
30 Jul 15 07:38:55
Leidos wins $4.34B military healthcare records contract http://t.co/bPmbDmBUQM $LDOS $CERN $IBM $MDRX
ARK Web x.0
30 Jul 15 06:52:20
Thanks to @coltssteve for pointing us to $CERN + $ACN winning $9B #DoD contract for #EHR interoperability.
30 Jul 15 06:40:00
$CERN - BUY Signal at 73.4 on Jul 29, 15 By YaMasuta, FREE Algorithmic Trading Software http://t.co/LaBa1JZUYz #stock #trading #trade
30 Jul 15 06:31:01
RT Sentiquant: #sentishiftdown $WFM $GPRO $DATA $TBF $UPL $MNKD $CERN $XIV $DWTI $IMO #sentiquant #FinTech 20150730 09:25:04:656
30 Jul 15 06:25:01
#sentishiftdown $WFM $GPRO $DATA $TBF $UPL $MNKD $CERN $XIV $DWTI $IMO #sentiquant #FinTech 20150730 09:25:04:656
Sentifi US Market
30 Jul 15 05:08:16
$CERN: Cerner wins Pentagon's $9 bln contract to revamp health data. More about #Cerner: http://t.co/ZkdvrYt26d http://t.co/3fBNkIbE3Z
Sentifi US Market
30 Jul 15 05:06:39
Today's Hottest #NASDAQ100 Stocks http://t.co/xPMTGGwJBP $WFM $CERN $CTXS $FB $QIA $MU $NASDAQ http://t.co/zrlDngpLL0
30 Jul 15 05:01:04
RT Sentiquant: #volumeshiftup $KODK $CALX $APD $RGI $YRCW $ENI $UPL $RJET $CERN $RBS #sentiquant #FinTech 20150730 08:00:06:886
30 Jul 15 05:01:04
RT Sentiquant: #sentishiftdown $DATA $UPL $TBF $WFM $CERN $XIV $TWC $DWTI $MNKD $CTXS #sentiquant #FinTech 20150730 08:00:06:761
30 Jul 15 05:00:03
#volumeshiftup $KODK $CALX $APD $RGI $YRCW $ENI $UPL $RJET $CERN $RBS #sentiquant #FinTech 20150730 08:00:06:886
30 Jul 15 05:00:03
#sentishiftdown $DATA $UPL $TBF $WFM $CERN $XIV $TWC $DWTI $MNKD $CTXS #sentiquant #FinTech 20150730 08:00:06:761
30 Jul 15 04:03:03
RT @berthacoombs: Spoke with #DoD brass on selection process behind @Cerner #EHR contract win. http://t.co/wPjHnMDjiR #dhmsm $CERN http://…
Bertha Coombs
30 Jul 15 03:54:42
Spoke with #DoD brass on selection process behind @Cerner #EHR contract win. http://t.co/wPjHnMDjiR #dhmsm $CERN http://t.co/Pv9wB6SvxN
30 Jul 15 03:50:07
SBUX Starbucks Corp. 52Wk High http://t.co/5ShJRMVHVy $SBUX $JD $FXY $CERN #SBUX #stocks #share
30 Jul 15 03:50:07
UWTI VelocityShares 3x Long Crude ETN Summary http://t.co/OzqP0Kwep0 $UWTI $STNG $CERN $FIUIX #UWTI #stock #tradeideas
30 Jul 15 03:46:12
NUGT Direxion Daily Gold Miners Bull 3x Shares EOD Data http://t.co/9QpOIqzwl4 $NUGT $EFA $CERN $PMCB #NUGT #stockmarket #investing
30 Jul 15 03:46:11
RSX Market Vectors Russia ETF Trust Current Price http://t.co/8kPQimvTN7 $RSX $XLK $CERN $JNK #RSX #investing #stocks
30 Jul 15 03:46:06
NBIX Neurocrine Biosciences, Inc. Stock Forum http://t.co/oe7LPL6WEV $NBIX $IJR $CERN $GE #NBIX #investing #investing
30 Jul 15 03:44:19
KBE SPDR KBW Bank Index ETF Quotes http://t.co/fuEfHksvjJ $KBE $GDX $FSHOX $CERN #KBE #stockmarket #nasdaq
30 Jul 15 03:43:42
JD http://t.co/RS9cPindCL, Inc. Bid Size http://t.co/XR0BSmFkC8 $JD $CERN $JD $FCX #JD #tradeideas #invest
30 Jul 15 03:43:10
ITB iShares Dow Jones U.S. Home Construction Market Cap http://t.co/yVlfOAYNjR $ITB $CERN $FDLSX $EOG #ITB #pennystocks #nasdaq
Investors Hangout
30 Jul 15 03:42:11
IJK iShares S&P MidCap 400 Growth Index News http://t.co/Nr8ZVSc6sE $IJK $HL $CERN $ASHR #IJK #investing #finance
30 Jul 15 03:41:43
IBB Biotech iShares Short Sales http://t.co/M8obFFi0Tr $IBB $CAT $KITE $CERN #IBB #stock #tradeideas
Investors Hangout
30 Jul 15 03:41:14
GLD SPDR Gold Trust Shares Bid http://t.co/ilmk7snaDZ $GLD $CEMP $FSELX $CERN #GLD #pennystocks #investing
30 Jul 15 03:39:41
FSRBX Fidelity Select Banking Day Low http://t.co/FbkJENdqLo $FSRBX $XLY $CERN $CELG #FSRBX #investing #stock
30 Jul 15 03:39:09
FSMEX Fidelity Select Medical Equipment Shares http://t.co/fc5GPUeAPQ $FSMEX $SHOP $FSHCX $CERN #FSMEX #finance #nasdaq
Investors Hangout
30 Jul 15 03:38:39
FSDPX Fidelity Select Materials Portfolio News http://t.co/Huu0qPRhja $FSDPX $FARE $CERN $BIDU #FSDPX #pennystocks #pennystocks
Rosner Stocks
30 Jul 15 03:36:48
FCX Freeport-McMoRan, Inc. Tick http://t.co/wPxqwQFFz1 $FCX $CERN $SEDG $CBL #FCX #stockmarket #nasdaq
30 Jul 15 03:33:44
CERN Cerner Corp. Exchange http://t.co/iTc9HbAi5F $CERN $MMTC $SMH $MPC #CERN #pennystocks #invest
30 Jul 15 03:33:41
CERN Cerner Corp. Shares http://t.co/s0cndyUH3s $CERN $FSNGX $CBAI $FIUIX #CERN #share #stockmarket
Rosner Stocks
30 Jul 15 03:33:38
CERN Cerner Corp. Investor Opinions http://t.co/ODYAM8DLRr $CERN $GPRO $EMC $IJK #CERN #share #investing
30 Jul 15 03:33:38
CERN Cerner Corp. Dividend http://t.co/uiaNy4C95N $CERN $MBHC $EXEL $FSLBX #CERN #tradeideas #share
30 Jul 15 03:33:36
CERN Cerner Corp. 52Wk High http://t.co/JREFTd7ojC $CERN $FSPTX $SMN $FSLBX #CERN #stock #stockmarket
Investors Hangout
30 Jul 15 03:32:45
BLUE Bluebird Bio Inc. Company Info http://t.co/h0qz9nOkig $BLUE $CERN $FSPTX $DXJ #BLUE #invest #finance
James DiPlata
30 Jul 15 03:08:46
RT @lookn4wins: CERN Cerner Corp. Stock Forum http://t.co/NKP9SCJf4o $CERN $AAPL $SPXS $UCO #CERN #share #tradeideas
30 Jul 15 01:57:42
RT @InvestorsLive: $CERN huge rip
Lucky Jimmy
30 Jul 15 01:47:34
XLV Health Care Select Sector SPDR EOD Data http://t.co/tVwIIWSpAs $XLV $CERN $FV $FXS #XLV #stock #nasdaq
30 Jul 15 01:45:33
TZA Direxion Daily Small Cap Bear 3x Shares Quotes http://t.co/WsbBz0tFF0 $TZA $UDOW $CERN $RGLD #TZA #stock #share
30 Jul 15 01:45:06
TLT iShares Barclays 20+ Year Treasury Bond Fund Quotes http://t.co/qVc3hLjKaI $TLT $CERN $FXE $JPM #TLT #invest #stockmarket
30 Jul 15 01:35:24
CERN Cerner Corp. Bid Size http://t.co/haSgfdJNGh $CERN $ARNGF $EBAY $APC #CERN #pennystocks #tradeideas
30 Jul 15 01:32:41
ANTH Anthera Pharmaceuticals Inc. % Change http://t.co/iGuNrJgZY5 $ANTH $CERN $PTN $HZU.TO #ANTH #finance #investing
30 Jul 15 01:04:53
VOD Vodafone Group Public Limited Company Volume http://t.co/FAlCk8BO5W $VOD $TWTR $CERN $BAC #VOD #invest #sto… http://t.co/RBfA8LcTJ0
30 Jul 15 00:50:39
XLE Energy Select Sector SPDR Company Info http://t.co/SqEEx0dNDG $XLE $ASHS $CERN $OWOO #XLE #tradeideas #tradeideas
By  +Follow June 26, 2013 10:55AM



blog comments powered by Disqus

 Today's Must Reads

5 Small-Cap Energy with Hedges to Survive Oil's Bear Market

DraftKings and FanDuel: The New Face of Legalized Online Sports Betting

Is the Market Paying the Toll of Tech?

What Will Uber Look Like in the Future?

How Dodd-Frank Divides Political Parties Prior to 2016 Election


Apple (AAPL) is expected to announce its latest quarterly earnings next week. As the most valuable company by mark... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register