), provider of end-to-end automated solutions for medication-use
process, has expanded its customer base as Springhill Medical
Center selected it as its exclusive provider for medication
management solutions. Mobile, Alabama-based Springhill Medical
Center is a hospital with 252 beds.
Omnicell serves a niche market that is expected to grow
further as it continues to gain more clients. With the growing
demand for more efficient medication administration, Springhill
Medical Center will deploy Omnicell's G4 and Anywhere RN remote
medication management system to better manage its hospital.
The decentralized pharmacy model on G4 platform is expected to
result in reallocation of nursing hours in patient care. This
should lead to improvement in the hospital's operations and
nursing workflow. Moreover, the hospital expects to increase
standards of patient care with a less labor-intensive method of
In a bid to standardize its management solutions, the hospital
will also deploy Omnicell's well-regarded Pandora business
analytics solutions. Pandora analytics will provide valuable
insights into the clinical operations of the hospital and curtail
medication-associated administrative errors.
Currently, an increasing number of institutions are planning
to shift to the automated mode to improve workflow and medication
management. Further, the shortage of nursing facilities in the
U.S. should drive demand for automated solutions for medication
and supply solutions.
Omnicell also stands to benefit from demographic tailwinds as
well as higher investment in the healthcare industry. However,
lower capital expenditure by hospitals as they battle
reimbursement cuts and budget constraints remains a looming
concern for the company.
We currently have a long-term Neutral recommendation on the
stock which carries a Zacks Rank #3 (Hold).
), a major player in the medication management and supply chain
solutions market, carries a Zacks Rank #2 (Buy).
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