HCAT stock moved higher on June 18, 2020, after the stock got a Buy rating from Stifel.
Stifel analyst David Grossman initiated coverage of Health Catalyst with a Buy rating and $36 price target. Hospitals are under increasing pressure to provide better clinical outcomes at lower costs and Health Catalyst provides large health systems software and the professional services expertise, which enables the company to improve clinical outcomes and financial performance, Grossman tells investors in a research note. Despite some near-term uncertainty due to COVID-19,Health Catalyst is a 20% grower with expanding margins, says the analyst.
Today, Health Catalyst, Inc. (“Health Catalyst,” Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, announced its participation in the COVID-19 Evidence Accelerator, an expansive public-private partnership that combines the efforts of academic, government, and private sector organizations by applying real-world data to advance the understanding of COVID-19. The COVID-19 Evidence Accelerator was launched by the Reagan-Udall Foundation for the FDA, in collaboration with Friends of Cancer Research (Friends).
As part of its involvement, Health Catalyst will provide real-world insights to address important COVID-19-related research topics, including the natural history of the disease, how existing treatments may affect patient outcomes, and the use of diagnostics and medications in different patient populations. This crucial data will be sourced from the company’s COVID-19 National Registry, powered Touchstone™. The COVID-19 National Registry includes more than 64,000 COVID-19 patients, along with an additional 500,000 patients with COVID-related symptoms that are being analyzed for risk of being an undiagnosed COVID patient.
“As the country continues working to respond to COVID-19, it is critical for all sectors of the industry to come together and work as one,” said Dr. Sadiqa Mahmood, Senior Vice President and General Manager of Health Catalyst’s Life Sciences Business. “We are proud to contribute our platform, real-world insights and expertise in data-driven outcome improvement to the Evidence Accelerator. This collaboration has the potential to highlight the value of near real-time data to generate deep clinical insights and inform regulatory decision making. All of this feeds our ultimate goal, which is to help our customers diagnose, treat and prevent COVID-19, and manage the associated supply chains.”
The Evidence Accelerator mobilizes the country’s leading experts in health data aggregation and analytics in a unified effort to share insights, compare results, and answer key questions about COVID-19 treatment and response as quickly as possible. As a contributing researcher, Health Catalyst will participate in weekly meetings with partner organizations to present and discuss findings from various data sources. In addition, the Evidence Accelerator will facilitate parallel analyses of key questions to rapidly identify patient characteristics, treatment patterns, and management strategies for COVID-19.
On June 15, 2020, Evercore ISI analyst Elizabeth Anderson assumed coverage of Health Catalyst with an Outperform rating and $32 price target.
On June 10, 2020, Health Catalyst announced that it will be offering a comprehensive quality measures solution that combines its Data Operating System (DOS™) with a scalable measures application designed to improve provider quality measurement.
This solution is focused on Able Health, which was acquired by Health Catalyst in February 2020, and bolsters Health Catalyst’s existing Quality & Regulatory Measures capabilities to provide clients with one comprehensive quality performance system by combining complete data from DOS with complete measures, visualizations, and workflows (i.e., monitor, improve and submit to payers) into one product. Focusing on quality performance is as important as ever in a post-COVID-19 world. Able Health supports high-quality outpatient care designed to prevent and control chronic conditions, including those that can lead to poor inpatient outcomes in COVID-19 patients when present or uncontrolled.
Rachel Katz, Senior Vice President for Able Health Product Solutions, said, “In the midst of the COVID-19 crisis, we continue to learn about the chronic conditions leading to problematic outcomes for patients. We think of Able Health as a preventative solution; our efforts have been inspired from the belief that ‘an ounce of prevention is worth a pound of cure’.”
“Ultimately, the combined Health Catalyst DOS and Able Health offering will further reduce the administrative burden of quality reporting, allowing care teams to focus on patient care. This is key to making value-based care work for providers and patients,” Ms. Katz continued.
The Able Health application will be progressively integrated with DOS in various stages, with full integration anticipated in early 2021. The first phase of integration will focus primarily on making integrated claims and clinical data in DOS available to the Able Health measures engine and application. Clients will be able to compute any of the hundreds of measures in Able Health’s catalog. Later stages of integration will focus on integrating computed measures with other applications in the DOS ecosystem.
“We are excited that through the integration of Able Health’s capabilities with our DOS platform, we can more effectively support our clients in creating an end-to-end quality measures solution – all the way from data source to measures submission, and everything in between,” said Dan Burton, CEO of Health Catalyst. “Powered by DOS, Able Health’s measures engine will provide meaningful value to our clients by relieving the massive burden of managing regulatory measures.”
Eric Just, Senior Vice President and General Manager, Application Suite Business at Health Catalyst added, “Our DOS platform’s integration of vast sources of claims and clinical data is perfectly complemented by the breadth of Able Health’s measures library and comprehensive application. We are thrilled with the value this will deliver to our clients by creating massive efficiencies in monitoring quality performance, identifying meaningful outcomes improvement opportunities, and providing submission capabilities for both commercial payers and Medicare.”
On May 27, 2020, Piper Sandler analyst Sean Wieland reiterated an Overweight rating on Health Catalyst with a $50 price target after hosting virtual meetings with management. COVID-19 underscores the need for the country’s healthcare data management and analytics infrastructure to, in essence, “grow up,” Wieland tells investors in a research note. The analyst believes Health Catalyst’s data and analytics helped health systems survive COVID-19 and that the platform “is defining the path to recovery.” Wieland is bullish on the company’s opportunities post the pandemic.