Healthcare Quarterly Earnings Call Synopsis – Q4 2018
We are pleased to present our Fourth Quarter 2018 review of the Healthcare Consulting and IT Services sector, which consists mainly of a mix of buyers providing management consulting, technology-enabled services, and technology platforms for the Healthcare Provider sector.
Key trends in this sector include:
- Favorable Regulatory Outlook: The current U.S. Administration, including CMS and HHS, has signaled a favorable regulatory environment for the use of innovative technologies and continues to push the shift from a fee-for-service to a value-based care payment model, opening up opportunities for Healthcare IT companies to provide their differentiated offerings to companies undergoing their business model and operational transitions.
- Healthcare IT and Consulting Companies Move to Recurring Revenue Models: Companies in the space are undergoing a shift towards offering more services associated with recurring-revenue streams including SaaS-based subscription models and ongoing managed services engagements. Companies employing this pricing and business model drive operating leverage and show significantly higher profitability.
- Healthcare Executives Reinventing Patient Experience: As healthcare executives manage the path to accountable care and reinvent the patient experience, the biggest areas of investment by healthcare provider organizations continues to be value-based care delivery initiatives, patient engagement and care management, and enterprise digital. At the same time, healthcare executives are searching for ways to demonstrate a return on investment for IT technology, including the estimated $30b-plus related to EMR in 2018.