FYI Another informed opinion on this co. I paste from RB:
my take on Claimsnet
I used to work under contract for United HealthCare Corporation (UNH) as a computer systems analyst. At the time, the client/server software wave was going strong (not for me, I'm a mainframer). From what I have read lately, web-based forms processing is the new thing these days. Costs are lower than with client/server since the forms work the same on any operating system or web browser. No software distribution necessary, since the users already have web-enabled PCs. Companies like United HealthCare (a Claimsnet client) are only too happy to outsource anything they can. They prefer to receive claims via EDI (Electronic Data Interchange) as they have for years now. What Claimsnet (and Healtheon) are doing is providing web-based claims entry to clinics, doctors and hospitals. Presumably, they then aggregate the claims into EDI batchs and transmit them to the payor. This saves money for the HMOs. HMO stocks were down today because of higher claims cost. Of course, this may mean that more claims are being filed, which benefits CLAI and HLTH, since it makes a larger pie for them to carve up.
From what I have read, Healtheon is being picked up by mutual funds and perhaps by corporations in related industries. A net stock like HLTH or CLAI is not just selling air, like most of the high-fliers are. They provide a real service that is necessary to other corporations. This is the future of medical claims processing. Hopefully, CLAI can get the right clients now that it is well-capitalized from the IPO. This sort of business is highly scalable, so once the fixed expenses are met, profitability should be easy to attain and grow. Once a critical mass is reached, they can expand by getting a more robust web server and a fatter pipe to the Internet. I really believe in this company, good luck to all who are long. |
