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Technology Stocks
IGHS: Integrated Healthcare Systems

An SI Board Since April 1999

Posts	SubjectMarks	Bans
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Emcee: E. M. Edds	Type: Unmoderated

Introduction Compact

I find it appropriate to create a new thread for IGHS, as according to management during the conference call today, April 27, 1999, held at 4:15 PM, the company is emerging during this fiscal year from a development stage company to a revenue generating, profitable company. The conference call can be heard in its entirety at 1-800-475-6701 ext. 446334. Also, up-to-date information on IGHS can be accessed at www.ighs.com.
The potential market size for the conductivity segment of the health care market, which IGHS is positioning itself as a major player in, is $10 billion dollars. With contracts already in place, IGHS has 189 hospitals thru the Ohio Hospital Association which they are combining into one database. In addition, they have recently been awarded a risk strategy/risk info. contract in Alabama. In total, IGHS has nearly 500 hospitals already under contract, which is roughly 10% of the 5200 hospitals listed with the American Hospital Association. The management also made reference to contracts pending with other hospital associations, which are simply waiting for IGHS to rollout the contracts won in the last month or so. They specifically mentioned "new contracts we believe will happen." In addition, the database they are creating has other so-far untapped utilities. They specifically mention adding physician practice info and creating healthcare portals. I can also see a large market for their information with insurance companies. For the fiscal year 1999, ending in December, the company predicts earnings of $.14 per share, with only 6.25 million shares outstanding. They affirmed that they are "on track" to achieve those earnings. There are currently 20 employees at IGHS.
Competitors? There are competitors on two levels. The first is on the individual hospital/tactical level. Competitors include Landacorp and NIDS (sp?). The second level of competitor is the statewide-to-national level, and includes HCIA. (HCIA trades for $5.70 on negative earnings and a book value of nearly $10.) The strengths of IGHS versus their competitors are many fold:
1. The IGHS platform is "robust", and is modular based versus competitors monolithic (all-or-none) systems. Thus, the individual hospital or even statewide association has the option of buying the IGHS system in modules, ranging from $30000 to $150000.
2. The IGHS system requires no programming, but rather is parameter driven.
3. It is therefore easy to adjust the IGHS system.
4. IGHS uses "the latest and greatest software."
5. IGHS collects their data before it becomes billing data--which is perhaps the most significant difference. This allows more precise monitoring and compilation of data.
6. IGHS is able to perform on a large network basis.

For background information, IGHS's product is I-link, which can be expanded across hospitals via a private network internet backbone otherwise known as a virtual private network. Thus, not only does IGHS provide in-hospital warehousing of information, but also provides a network of information on a statewide and likely ultimately a nationwide level. Their focus is on quality and risk management strategies. This provides an economic benefit to users on a hospital or larger level by reducing risk and improving quality. Such areas as length of stay, staff credentialing, infection control, and occurrences/incidents (including medical errors and needle sticks). The individual patient is effectively monitored on a minute-by-minute basis, and the staff is monitored by many performance and credentialing parameters. In the end, this saves the user money, decreases risk, and even can decrease liability insurance. With national changes in healthcare, such data and information is becoming mandatory, such as at the VA hospitals which are mandatorily subject to such review, and IGHS is in an ideal position to take advantage of and provide such needs.
IGHS plans to file a Form 10 this quarter. Asked about selling IGHS, the management replied that they "are not actively engaged in a campaign to sell the company," but they have an investment banker and would do "whatever is best for the shareholders." They also are considering adding strategic partners, if it benefits the company and its shareholders.
I will end with a few quotes from the conference call: they "know this year will be profitable," the cash position is "very adequate, thank you very much," and lastly, the management is "very keen on IGHS stock."

I have compiled this information to the best of my ability to remain consistent with the conference call. All investors must perform their own due diligence and must not rely on information contained herein. Any deviations from the content of the conference call is not intentional, and I accept no responsibility for any such deviations. The company referred to the Safe Harbor Agreement of 1995 regarding forward looking statements at the beginning of the conference call.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
4	Nice thread, E.M. Always interested in a stock trading for only four times pre	Impeccable	-	4/28/1999
3	Thanks for your insight (LOL).	E. M. Edds	-	4/27/1999
2	edit nothin	ciVic	-	4/27/1999
1	See also the IGHS link below for more background and discussion: Subject 20453	E. M. Edds	-	4/27/1999

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