) announced that Allina Health, a not-for-profit health system,
has extended its prior agreement with the company to align
hospital and physician reimbursement strategies more efficiently
across its own healthcare domain. Following this positive piece
of news, MedAssets' shares gained 15 cents (since Nov 25) to end
the session at $21.54 on Nov 29, 2013.
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Allina Health delivers care for patients, from birth until the
end of life, through its wide network of 90+ clinics, 12
hospitals, 14 pharmacies, specialty care centers and specialty
medical services. The extension of the relationship with
MedAssets demonstrates the Minneapolis-based healthcare system's
intentions to comply with the accountable care organization (ACO)
delivery model and grow as a value-based organization.
The sole intention of The Patient Protection and Affordable Care
Act is to ensure that all Americans have access to superior
quality healthcare at affordable prices. It includes payment
reform initiatives that seek to promote physician-hospital
integration, including ACOs. Under this new mechanism, all
providers like hospitals, medical groups and independent
physicians will be jointly accountable, financially, for both the
cost and quality of a defined patient outcome.
MedAssets is a healthcare performance improvement company,
focused on helping providers realize financial and operational
gains, so as to serve better the health care needs of the
This relationship is also expected to bring in new payment
methodologies that promise, within the scope of one payment,
services from pre-acute, acute and follow-up care providers.
Moreover, with the implementation of MedAssets Contract
Management Professional and Prospective Episode Manager, Allina
Health will be able to model, bundle and price both hospital and
professional claims under a single-bundled contract. Allina
Health can incorporate the insight gained therein into its pay or
Such in-depth analysis will help Allina Health to determine
reimbursement patterns in future, in order to mitigate financial
risks and identify greater cost-saving avenues.
MedAssets Contract and Episode Management Solutions enable health
systems to narrow the gap between traditional fee-for-service and
fee-for-value reimbursements. The Contract management and
Modeling tools from MedAssets have helped Allina Health achieve
annual financial improvement of $6 million to $8 million during
the last 10 years.
Currently the stock carries a Zacks Rank # 4(Strong Sell).
Investors interested in the industry may consider stocks like
Charles River Laboratories International, Inc
ICON Public Ltd.
Air Methods Corp.
) carrying a Zacks Rank #2 (Buy).