MedAssets, Inc. ( MDAS ), a company dedicated to revenue cycle management ("RCM") and supply chain management, recently revealed a strategic partnership with the SAP company, Ariba. This understanding provides suppliers and providers in the health care business with a composite platform for electronic commerce.
Consequently, health providers may now carry out e-commerce with the almost one million firms on the Ariba Network via the MedAssets eCommerce Exchange. The amalgamation of the strengths of the two parties will improve management of costs and enhance collaboration between providers and suppliers. Among other benefits, health care providers will find it possible to discard most, if not all of their paper invoices given by suppliers and instead utilize Ariba's invoicing offerings.
MedAssets may leverage Ariba's network and cloud-based services to improve accuracy of contract pricing, reduce operational costs, enhance contractual compliance and provide discounts for providers and suppliers.
Ariba offers a network for business commerce. It brings together cloud-based offerings with the biggest internet-based trading circuit. The Ariba network may be used by businesses for dealings with their business partners at any time.
MedAssets teams with health-related entities to implement revenue cycle management and other offerings that curb costs and lead to better margins and cash flow. The company works with over 4,200 hospitals and 122,000 health providers. It handles $50 billion in health supply expenditure and slightly more than $365 billion in overall patient revenue.
We currently have a Zacks Rank #3 (Hold) on MedAssets. We are more positive about Air Methods Corp. ( AIRM ), which carries a Zacks Rank #1 (Strong Buy). Further, Becton, Dickinson and Company ( BDX ), and The Cooper Companies Inc. ( COO ) each carry a Zacks Rank #2 (Buy) and are expected to do well.
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