Health Catalyst (HCAT)

Investment Analysis Clubs Saul’s Investing Discussions
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Bert is bullish on this digital health play :

https://seekingalpha.com/article/4279470-health-catalyst-usi…

"Health Catalyst came public last week.

The company sold shares at $26-they are now trading in the $40 range.

The company is a leading vendor in the Health Care analytic space with a proprietary data warehouse/date integration platform.

The company has a variety of pre-packaged templates/applications that can dramatically improve the operational performance of its users.

The company is a pioneer in the use of AI and big data in terms of providing its health care users with decision support and process improvement capabilities.

…

While I certainly would like more current financials, and a discussion of the results of the June quarter, I think that most of the data available suggests that Health Cat will show excellent growth over coming years. I think it has a leading platform in what should be a hot space, and I expect to see some of its newer analytic platforms drive additional growth as they mature in the market. While the shares are certainly far higher than they were in the pre-IPO stage, my belief is that they are fairly valued with strong potential for positive re-rating."

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I recently bought this one too.
Liked the intersection of healthcare and data/AI.

Harder to find info, as newer IPO, but I did see this article.
https://www.healthcareitnews.com/news/health-catalyst-ipo-us…

“When we and our board thought about the decision to go public, we wanted to make sure we were of a size and scale, as well as predictability, to be a good public company,” Nelli explained.

“We’ve reached that size and scale, and a level of predictability – with greater than 90 percent of our revenues being recurring in nature last year – where we felt comfortable doing this,” he said.

“There is a trillion dollars of waste in the U.S. healthcare system, 30 cents of every dollar,” he explained. "In order to fulfill our mission, we need to get much larger. So this capital will help support our growth over the foreseeable future.”

As of Thursday afternoon, Health Catalyst shares were up 49%, trading above $38.

“We are in the early innings of the digitization of healthcare,” said Nelli. "A lot of our customers have only had information in a digital format available to them over the last several years. So that means we are just scratching the surface when we think about these types of various use-cases for using data to help these organizations drive improvements.

“Given that we’re still in the early stages,” he added, “we think we’ll continue to see improvements like the ones that we’ve helped customers achieve, such as helping them reduce their sepsis mortality rates by making more data-informed decisions, or helping them increase their patient throughput in the emergency department. We think there’s a lot of room to continue to go in helping our customers with clinical, financial and operational use-cases.”

About a 3% position for me…will keep for a while and see how it goes.

Dreamer

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Last note…found an example of how they interact with a larger client (Kaiser):

https://www.healthcatalyst.com/news/kaiser-permanente-announ…

Burton says Kaiser will initially use Health Catalyst for two projects. “They have a specific need for system-wide access to a subset of data around transplant patients,” he explained. Dover added that Kaiser is working on a specific project for diabetic patients in Colorado. “Kaiser is reaching out to diabetic patients. They were going after patients using spreadsheets and complex SQL extracts. They told us Health Catalyst builds a cohort in 180 seconds when it used to take 180 days. This allows them to proactively go after patients for population health management.”

Eleven of Health Catalyst’s customers, including Kaiser, are Epic clients. I asked Burton why Kaiser chose a third-party tool over Epic’s Cogito data warehouse and reporting platform. “In our experience, it’s an apples to oranges comparison,” he said. “Cogito offers basic functionality from a data storage perspective that could meet rudimentary needs. We’re offering a data warehouse as a platform for transformation from an advanced clinical apps perspective.” Dover added, “When I worked at Medicity, customers always asked for analytics tools. No client really knows what they want to analyze – it’s a never-ending list. The market demands an incredibly flexible platform. We have 17 case studies and none of them have anything to do with each other – it’s what each of them needed to improve quality and cost.”

I asked Burton about the $50 million in product development to create 200 advanced clinical applications. “A couple of our longstanding customers, Texas Children’s and Stanford, worked on specific areas to identify inefficiency and variation of care in heart failure and asthma patients, showing where the variation existed, what needed to change, and tracking progress, even tracking the return on investment of the improvement. At a CEO level, said they need to target 20 applications per year over the next five years to measurably and meaningfully bend the cost curve to allow them to not only survive, but thrive and lead. That opened our eyes that what our clients are seeking is a roadmap. We decided to become a company that offers hundreds of analytic applications so we can be a long-term partner to help these health systems transform themselves.”

Dreamer

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