A recent client win by
) should help further propel investor confidence in the stock. On
a year-to-date basis, the company has returned an impressive
40.7% to its investors.
Riverdale, Ga.-based Southern Regional Medical Center ("SRMC")
has entered into an agreement with MedAssets to improve its
operating as well as financial performance. The hospital will be
using MDAS' Accounts Receivable (A/R) Services and revenue cycle
consulting expertise to manage aged receivables and liquidate
cash more efficiently.
As per the agreement, SRMC will engage MedAssets A/R Services to
maintain as well as enhance its net cash collections, as it
installs a new fully integrated revenue cycle platform, including
an electronic health record and physician order entry modules.
SRMC will outsource its aged receivables management to MDAS, on
an ongoing basis, so that management can fully focus on
implementation and training for the new system.
MedAssets provides web-based workflow technology that helps
mitigate increasing financial pressures faced by hospitals,
health systems, and other non-acute healthcare providers.
Management asserts that its full suite of solutions is capable of
improving client operating margins by 1.5%-5.0% by increasing
revenue capture, reducing supply costs and improving clinical
resource utilization. The company's client-base boasts over 4,200
acute care hospitals and more than 122,000 ancillary or non-acute
Earlier, The Texas Purchasing Coalition (TPC) renewed its
performance management relationship with MDAS. The contract
extension builds on the former's success in realizing more than
$90 million in documented savings since 2010.
Currently, MedAssets has a Zacks Rank #3 (Hold). While we choose
to remain on the sidelines regarding MDAS, other
better-performing medical services stocks include
Quintiles Transnational Holdings Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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