From Raging Bull:
By: Despy
Reply To: 2786 by SouthFlorida Sunday, 26 Mar 2000 at 1:55 AM EST
Post # of 2798
EMED is a solid company. It has consistantly improved its earnings and most of us are expecting positive reports on quarter 2 earnings. It has a profitable business plan with mutiple product lines.
One of the product lines you will hear me rave about is sold by their financial services devision. EMED is currently applying for national contracts with the federal government to process 3rd party claims to Medicare.
With that accomplishment out of the way, the company will be able to provide electronic claim submission on behalf of doctors offices wanting to get paid by both Medicare and private payors quicker. Medicare will pay doctor's in 14 days if the claim is transmitted electronically. If claim is mailed, it is subject to data entry errors and subject to 30 day payment terms.
There are several competitors but only one to worry about. Medicare will sell the software to allow a doctor to transmitt electronically. Its downfall is that the doctor can not use the software for any other third party payor and must use a seperate billing program when billing private insurances. Rather than pay for two programs, most doctors mail the claims.
Other products on the market consist of expensive customized software that will transmit electronically to medicare and print UB92 or HCFA 1500 claim forms that can be mailed to private insurance carriers. However, these products do not transmitt to "private" carriers. I have worked in the Medical Billing industry for over 10 years and seen a number of different accounting packages. EMED is the first company to attempt to make one product that can bill both Medicare and Private carrierss via electronic claim submissions.
This requires interfacing with each potential payor's computer software. In the past, computers just didn't have the same compatibility options as they do now. Emed is continueing to negotiate with 3rd party payors to expand its product attractiveness.
EMED's distinct advantage is in its "dual" marketing plans and affordability of claim filing software. By selling the financial services, EMED can also offer doctors lower prices on Medical supplies utilizing economies of scale. The low-cost of the financial services will drive sales of other products and vice versa. Electronic claim submission products can be sold for less than the cost of a stamp.
This is not a "fly by night" Get rich quick plan. EMED's goals to eleminate paper claims will become a reality. It is not a question of if? It is a question of when? And who? Who will have largest market share. Use Yahoo and search for "Medical Billing Company" or "Accounts Receivable Managers." I did and was surprised at the results. Another selling concept is that doctors will not need the same number of office staff to mail and follow up on collecting the A/Rs if he/she utilizes a billing software that interfaces with his own accounting system and electroncially tracks his claims. EMED can carve a nich here.
Several companies are attempting similar plans. EMED is not trying to compete with companies like WebMD. This market is largely "UNTAPPED" and will remain so for the next five to ten years. There is plenty of room to grow. If you want to see another company offering similar products, look at www.medscape.com. They seem most likely to be a viable competitor. Don't be scared of Medscape.
They just dont have the same ideas. Medscape's billing system requires that the doctor leave confidential accounting and patient information on their company website. I dont think doctors will be willing to trust a an accounting system that saves confidential patient amd accounting data on an internet web server. MEDSCAPE takes away the doctor's options. EMED simply utilizes the net to transmit claims form the computer in the doctor's office to a computer in a medicare office or private insurrer. With EMED, The doctor still keeps the data and can bail at any time. MEDSCAPE is also targeting a different healthcare product sector. They are trying to allow the physician to transfer entire medical records via the internet for use by Managed care organizations. Currently their is a huge devide in the medical industry as a whole. MCOs on one side, and proividers on the other. The problem with catoring to MCOs is that most of them are filing chapter 11. I cant imagine a business that relies on bankrupt clients becomming a threat to EMED.
Medscape is not pounding the pavement signing up physicians. EMED already has providers on their client list that are utilizing the above products. That list is continueing to grow. I see their service becomming a fad in the medical industry without significant competition.
However; assuming others will compete successfully, THIS market is HUGE ! ! You only need about 5% of the market share to make good money off the residuals here. The closest analogy I can think of would be if GM bought BP. They make money on selling the car... and they make money selling the gas.
I like emed because of its financial services. Other's like it because one of the divisions, JUSTMED.COM, is schedualed to be sold to the public. That alone will rocket the stock north on the short run regardless of market share.
Regardless. This is a risk. Investing can be rewarding and punishing. GL... Let us know what you decide.
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