Punk Ziegel has just published a report titled "Healthcare Web Watch"
We quote from the report (can be downloaded from www.pzk.com):
"Two to Watch. Abaton.com (private) and Medix Resources (MDIX: OTCBB) offer compelling solutions that can quickly create virtual private transaction networks using the public Internet. First and foremost, the solutions are typically free to the healthcare provider. The Companies business models call for large sponsors such as payors and PBMs to pay per-transactionfees. Beyond the high-ROI benefits of EDI discussed earlier, the advantages to the sponsor include a fast rollout for in-network providers, the ability to create repositories of clinical content for its affiliates, and the elimination of network clearinghouses. Wellpoint (WPN: NYSE)is currently piloting Medix's solution in California,while Merck/Medco is an equityinvestor and key sponsor for Abaton.com.
One key difference separates the two approaches, and both are likely to be very successful, in our opinion. The difference is that Abaton.com offers a thin-client solution that requires nearly zero implementation on the part of the Company (a clear plus). The barrier is that providers must be compelled to invest the time and effort (a scarce resource in today managed care environment) to learn how to use the solution. Near term, manywill and many won't, in our opinion. Ultimately, the thin-client approach
will prevail as all information systems are migrated to the Web. The Medix solution, on the other hand, represents a compelling transitional solution. The solution circumvents the provider (a big plus) since the pre-existing thick-client, standalone practice management systems feed Medix's solution which, in turn, generates Internet (IP) transactions. Medix's software-based solution is capable of quickly integrating to any practice management system using the Companys proprietary data mapping tools and
universal interface. It therefore does involve up-front implementation expense, which we expect to typically be paid by the sponsor."
reh
Healthcare Web Watch
----------------------------------------------------------------------------------
Rolv E. Heggenhougen
stocksandmoney.com
|
