Medical Transcription Billing Corp ($MTBC) is an IT company that provides electronic health record (EHR) software, practice management and medical billing services to small practices with less than 10 healthcare professionals.
This is a fast growing industry with MTBC’s services offering significant cost savings while focussing on smaller practices means MTBC is targeting about 70% of the market (practices are generally of a small size) while avoiding competing with large players such as Athena who target larger practices.
There are significant benefits to be gained from using an EHR system including improved accuracy, efficiency and a reduction in medical errors. One growing trend that is driving growth in the EHR market is the increasing use of predictive analytics as medical offices generate a huge level of data that are ideal for data mining technology.
As a result MTBC has grown revenues quickly from $9m in 2009 to $24.5m in 2016 but, due to its small size and high SGA expenses, profitability has remained elusive. That may be about to change with ground breaking new product.
Two weeks ago the company announced the release of its talkEHR product which;
“is the world’s first cloud-based Electronic Health Record software that understands what you’re saying. Now you can interact with your EHR using the most natural way of communication—by talking to it. Doctors can now simply create patient charts, generate claims and carry out other clinical tasks by naturally conversing with talkEHR”
MTBC will now undertake a major marketing campaign in which it will be contacting approximately 1,600,000 physicians to offer the base talkEHR application for free. The system will include a number of added value functions and support services including electronic claims submission, electronic prescriptions, appointment scheduling, automated reminders and quality incentive support. However, most importantly, MTBC will also be offering a full-service package that includes medical billing, for 2.95% of a physician's collections, which is expected to be a very popular and very profitable selection.
With the market predicted to increase by 170% to $65 billion by 2025 even small players like MTBC should benefit from rising demand. However, if its talkEHR gains traction in the market with small offices it could transform the companies $25m revenues. Importantly, this is a resilient product that practices will be reluctant to change once adopted and staff are trained. This means strong pricing and margins should be achievable.
The Company has already revised upward its guidance for full year 2017 revenue to a range of approximately $31 to $32 million, which represents growth of 27% to 31%. Mahmud Haq, MTBC's Chairman and CEO said “we anticipate a remarkable year of achievement for MTBC."
If the marketing campaign is successful there could be alot more growth.
Please be aware that this is a highly speculative nano-cap stock with elevated risks and no liquidity.
This is not a recommendation to buy or sell. Stocks are not suitable for all investors. Please do your own research.
For the record, I don’t work for the company, I don't own the stock and I am not receiving any compensation for writing this.
Submitted September 16, 2017 at 10:31AM by InterestingNews1 http://ift.tt/2wklb8S
