Stock Index for Public Health IT Companies Falls by 9.6%, Report Finds

July 28, 2014 in News

The stock price index of public companies in the health IT sector declined in the first half of 2014, according to a report by Healthcare Growth Partners, Health Data Management reports.

For the report, researchers tracked the stock prices of seven health care industry sectors, including health IT and health IT services companies (Goedert, Health Data Management, 7/28).

Findings in Health IT Sector

Researchers found that the stock index of 23 health IT companies declined by 9.6% in the first half of 2014, after previously increasing by 23.2% in 2012 and by 53.2% in 2013.

Specifically, the stock price in the first half of this year increased for eight health IT companies:

  • Everyday Health, increasing by 36.9%;
  • WebMD, increasing by 25.2%;
  • Health Insurance Innovations, increasing by 22.9%;
  • MedAssets, increasing by 16.6%;
  • IMS Health Holdings, increasing by 11.7%;
  • Imprivata, increasing by 5.7%;
  • Computer Programs Systems, increasing by 5%; and
  • Allscripts Healthcare Solutions, increasing by 4.3%.

The stock prices decreased for 15 health IT companies, with the largest declines at:

Findings in Health IT Services Sector

For four companies in the health IT services sector, the stock price cumulatively increased by 6.4% in the first half of 2014. The companies were:

  • Computer Sciences Corporation;
  • DST Systems;
  • Huron Consulting Group; and
  • Navigant Consulting (Health Data Management, 7/28).

Researchers’ Comments

Researchers found that the health IT industry “continues to move at an accelerated pace” toward increased:

  • Decentralization of care;
  • Infrastructure maturity;
  • Patient engagement; and
  • Risk-based payment models (Healthcare Growth Partners report, 2014).

The report predicted that health IT will be a major driver of transformations in health care delivery, health management and health sustainability. In particular, researchers predicted that health IT would drive changes in the health care market by:

  • Establishing software infrastructure, including electronic health records, electronic information exchanges and health care management systems;
  • Expanding the care continuum, with the Affordable Care Act’s value-based reimbursement programs and new health IT infrastructure pushing payers to use health IT to leverage data and patient networks and pushing providers to increase their use of EHRs and other health IT infrastructure;
  • Empowering consumers, with deductibles and out-of-pocket costs increasing demand for data transparency (Dvorak, FierceHealthIT, 7/25); and
  • Delivering personalized medicine (Healthcare Growth Partners report, 2014).
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