In order to convert medical charts to electronic formats
) has entered into a partnership with ScanMD recently. Cintas will
now be able to switch to electronic medical records (
) instead of maintaining elaborate paper charts and files.
The coalition will guarantee Cintas the security of medical
records by converting the paper charts into electronic formats,
backed-up on secure servers. The searchable data fields will
make the task of searching the patient's records easier. The PDF
files will simplify the navigation process, thus saving time.
Alongside, the solution will also save the cost and space required
for maintaining the paper charts and files.
The alliance with ScanMD has helped Cintas in curtailing the
cost and labor of transforming the healthcare information and
records to EMR program. Moreover, Cintas is also able to stay ahead
of the future legislative regulations of utilizing EMR
ScanMD specializes in converting paper medical charts to
electronic formats. It integrates paper charts to EMR and
safeguards them, fulfilling the norms of Health Insurance
Portability and Accountability Act (HIPAA). The system also
diminishes the risk of HIPAA issues by reducing the number of lost
or inaccessible files.
In the recently reported quarterly results, Cintas' earnings
increased 50% to 57 cents per share from 38 cents in the
year-ago-quarter. Total revenue increased 9% year over year to
$1.02 billion. The Zacks Consensus Estimate for the third quarter
of the year 2012 is 52 cents.
Cintas continues to deliver margin expansion through better
sales productivity and cost efficiencies, offsetting the rising
headwinds from higher energy and other input costs. During the
second quarter of fiscal 2012, gross margin increased 50 basis
points to 42.2% and in operating margin there was an impressive 200
basis point expansion to 13%; this happens to be the fourth
consecutive quarter of strong operating margin expansion after
several years of decline.
This performance was commendable considering the ongoing
headwinds from higher energy and garment material prices. There is
scope for further gross margin expansion as the company has
unutilized capacity in facilities that it can leverage.
Furthermore, due to a weak labor outlook, much of the growth over
the last few quarters has been driven by new business sales rather
than existing customers adding more employees, which is more
profitable. Any increase in hiring at existing customers will boost
Currently, the shares of Cintas maintain a Zacks #2 (short-term
"Buy" recommendation) Rank. It competes with the likes of
G&K Services Inc.
) and privately held
Based in Cincinnati, Ohio, Cintas Corporation (
) provides specialized services to businesses of all types
throughout North America. The company designs, manufactures,
implements corporate identity uniform programs, and provides
entrance mats, restroom supplies, promotional products and first
aid and safety products for approximately 800,000 businesses.
Cintas operates under two operating segments, Rental Uniforms and
Ancillary Products and Other Services.
CINTAS CORP (
): Free Stock Analysis Report
G&K SVCS A (
): Free Stock Analysis Report
To read this article on Zacks.com click here.