Cloud Stocks: Change Healthcare Pushes APIs

According to a Markets and Markets report, the global Healthcare IT market is expected to grow 15% annually to reach $390.7 billion by 2024 from $187.6 billion in 2019. Tennessee-based Change Healthcare (Nasdaq: CHNG) is a leading player in the segment.

Change Healthcare’s Offerings

Change Healthcare was founded by Christopher Parks and Robert Hendrick in 2017. It was set up as a joint venture between Nashville-based Change Healthcare (formerly HCIT Holdings) and the Technology Solutions segment of McKesson Corporation. Change Healthcare offers software, analytics, network solutions, and technology-enabled services for an integrated healthcare system. Its services are designed to improve clinical decision making, simplify billing, collection, and payment processes and enable a better patient experience.

Its customer base includes approximately 2,200 government and commercial payer connections, 900,000 physicians, 118,000 dentists, 33,000 pharmacies, 5,500 hospitals, and 600 laboratories. Its network helps transact clinical records for over 112 million unique patients, which covers over a third of the U.S. population.

Change Healthcare’s Financials

For the third quarter, its revenues fell 1.7% over the year to $808.2 million, falling short of the market’s estimates by 0.9%. Net income was $31.2 million. On an adjusted basis, net income was $0.33 per share, ahead of the market’s forecast of $0.30 per share.

Change Healthcare operates through three segments — Software and Analytics, Network Solutions, and Technology-Enabled Services. Software and Analytics revenues grew 0.5% to $387.3 million. Revenue from Network Solutions grew 5% to $150.7 million and Technology-Enabled Services grew 6% to $241.5 million.

For the fourth quarter, the company expects Solutions revenues between $775-$785 million with an usted net income of $115-$125 million. It expects to end the current year with revenues growing 1%-2% over the year.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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