Digitalisation in the health care sector is growing exponentially, driven at first by smartphones and then by artificial intelligence (AI). Digital health care segment includes big data and digital transformation, telehealth as well as telemedicine, e-health, m-health, genomics and precision medicine.
With digitalisation in the health care industry, workload of health practitioners has been reduced, as they can operate and keep a record of patient activities and provide quick patient care. Owing to the significant growth in investments in the segment over the period of past 5 years, interest in digital health is palpable.
Artificial Intelligence (AI) in Health Care
The interest in automating labour-intensive tasks in the health care sector, enhancing the ability to intervene at an earlier time for avoiding adverse event and the expectation of lowering the development cost of therapeutic compounds has led to broad interest in the potential of integrating AI tools into the health care industry.
The five must checks before investing in digital health care businesses are:
- Regulatory Approval or a Proven and Well-Identified Pathway- The most crucial factor that investors should look out for in digital health care businesses is their ability to obtain a regulatory approval or an established and well-identified pathway, as without all these the digital health care space is unlikely to grow.
- Existing Clinical Data- The existing clinical data such as robust and completed clinical studies is a must check before investing in digital health care stocks. If a company has developed new products and it is performing well in clinical studies, it could be a sign that the company might achieve significant growth in upcoming years.
- New Models and Developments in Digital Health Care- There is always a need of innovation in any industry, but it is of crucial importance in the health care sector. There is a constant requirement of new developments in the sector due to increasing aging demographics as well as the chronic illnesses. Talking about digitalisation in the health care sector, accuracy in recording patients’ activities and keeping a track on it is essential, so the innovations in the models of providing digital care might be helpful for maintaining and improving the patient care. The investors should always keep an eye on the company’s new developments in which they want to invest.
- Management Team- A team with relevant experience is the backbone of any organisation, thus having a top-notch management team is essential. Same goes for digital health care businesses.
- Financial Checks- Analysing the financial performance of a company is one of the significant factors for investing. It is essential to check the company’s net profit, sales, margin, cash flow and debt before making investments. The rule remains the same for digital health care stocks.
Let us delve deep and discuss growth of one of the potential players in the digital health care space.
Alcidion Group Limited (ASX: ALC)
On 20 December 2019 (AEDT 01:30 PM), the stock of ALC was trading at $ 0.175, with outstanding market shares of approximately 990.69 million. The company has a market cap of nearly $ 173.37 million, while the 52 weeks low and high price of the stock is $0.038 and $0.306, respectively. The stock has delivered an excellent return of 272.34% on a year to date basis and 52.17% in the last six months.
About the Company
ASX listed digital health care player, Alcidion Group Limited (ASX: ALC) is a provider of smart, intuitive technology solutions, targeted towards meeting the needs of hospitals and allied health care, at a global level. The company offers a supportive set of software (products and services) to establish an offering that is unique in the industry. With an experience of more than 25 years, Alcidion brings together the best in technology and market knowledge, catering with solutions that make health care better for everyone.
Alcidion offers four major products for providing better health care to patients.
Deal with Taunton and Somerset NHS Foundation Trust
On 19 December 2019, Alcidion announced that Taunton and Somerset NHS Foundation Trust selected the company to deliver Patientrack, its electronic observations and patient assessment solution, and signed a deal of approximately $500K for more than three years.
Patientrack would be implemented by Taunton and Somerset NHS Foundation Trust for digitisation of the capture of patients’ bedside vital signs and observations. It would ensure that patients’ early warning scores are precisely evaluated, and that nurses and doctors are automatically alerted to patients at risk of deterioration, so that they can take any immediate action.
The deployment is projected to deliver considerable gains for patient safety and is a component of the trust’s broader digital priorities. NHS Trust Taunton is one of 17 hospital trusts in the NHS England’s Global Digital Exemplar program, which is designed for improving patient care via the adoption of world-class technologies.
Launch of Miya MEMRe
On 19 November 2019, Alcidion notified the launch of a mobile Electronic Medical Record- Miya MEMRe, which enables clinicians to review their current activity and caseload and get informed about the critical issues and access a comprehensive record of patients.
Some Key Facts about MEMRe-
- Miya MEMRe is in the trial stage in the Australian heath services, interacting with local clinical systems and providing clinicians in high-intensity areas like emergency departments with vital test results and risk indicators in real-time, through mobile devices, for improving decision-making;
- Alcidion’s product Miya MEMRe is aimed to exploit the immense amount of information available in an organisation’s electronic medical record and clinical systems, collecting that data and presenting it in an intuitive and focused user interface aligning to clinical workflow;
- Health care professionals can immediately identify problem areas and trends, and access data they require to provide precise care.
Operational Updates for FY2019
- Implementing and delivering significant projects-
- Dartford and Gravesham NHS Trust – Phase 1 of the strategic project (Patientrack) – now live;
- Launched referral service directory for Queensland Health;
- Delivered Alfred hospital data analytics platform;
- The company appointed General Manager of Sales and Marketing, UK and also added new sales executive for its Southern Region based in Victoria;
- eHealth NSW Proof of Concept innovation challenge early outcomes being presented at eHealth NSW expo.
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