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Change Healthcare (CHNG)-Luma Launch Patient Engagement Suite

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Change Healthcare Inc. recently introduced Patient Engagement, a suite of technology solutions, by partnering with Luma Health. The suite is aimed at effortlessly connect touchpoints throughout a patient’s healthcare journey, thereby increasing access and enhancing communication between patients and providers.

The Patient Engagement suite is centered around the patient’s success, where the tools work to increase patient volumes and loyalty while reducing denials and other administrative burdens for providers. Change Healthcare’s revenue cycle management capabilities and reach in healthcare, in association with Luma Health’s KLAS-recognized Patient Success Platform, will likely deliver a comprehensive set of patient engagement solutions that drive real outcomes.

The latest launch is expected to provide a substantial boost to Change Healthcare’s revenue cycle management business, which is a part of its broader Technology-Enabled Services segment.

Significance of the Launch

Patients expect convenience and ease of communication when they seek medical care. The Patient Engagement solution is expected to provide autonomy to patients while booking an appointment, which at times might take up to an average of eight minutes to complete. Also, the solution will likely complete intake forms at patients’ convenience while also reducing administrative burden on providers.

It is worth mentioning that Luma Health’s internal data suggests that providers who used the Patient Engagement solution experienced a strong uptick in appointment-based revenues and also witnessed higher patient satisfaction.

Change Healthcare’s revenue cycle management capabilities and Luma Health’s solutions will likely enable providers to unify operational, clinical and financial journeys. This, in turn, is expected to create a more streamlined experience for patients.

Change Healthcare’s management believes that this suite will likely represent a complete evolution of the patient and provider experience.

Industry Prospects

Per a report by MarketsandMarkets, the global revenue cycle management market is anticipated to reach $67.8 billion by 2026 from $40.9 billion in 2021 at a CAGR of 10.6%. Factors like increasing patient volumes and growth in health insurance, loss of revenues due to billing errors, and the rising need for robust process improvements in healthcare are expected to drive the market.

Given the market potential, the recent launch is expected to strengthen Change Healthcare’s position in the global revenue cycle management space.

Notable Developments

In May, Change Healthcare reported its fourth-quarter fiscal 2022 financial results, wherein it recorded solid overall top-line growth. It also registered robust solutions revenue growth, which was driven by increased volume, COVID-19 activities and new sales.

In April, Change Healthcare released InterQual 2022, the latest edition of its flagship clinical decision support solution for the delivery of the latest evidence-based appropriate care. The release includes new criteria for emergent trends, restructured and interactive criteria to streamline workflows, and artificial intelligence to drive proactive insights and efficiency.

The same month, Change Healthcare agreed to extend its merger agreement with diversified health services company — Optum — to Dec 31, 2022. The combination of both players is expected to connect and simplify the core clinical, administrative and payment processes health care providers and payers depend upon to serve patients.

Price Performance

Shares of Change Healthcare have gained 0.4% in the past year against the industry’s 59.2% fall and the S&P 500's 12.4% decline.

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Zacks Rank & Stocks to Consider

Currently, Change Healthcare carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Omnicell, Inc. (OMCL - Free Report) and Masimo Corporation (MASI - Free Report) .

AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare has gained 10.2% against the industry’s 53.8% fall in the past year.

Omnicell, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.

Omnicell has lost 24.3% compared with the industry’s 59.2% fall over the past year.

Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.6% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.

Masimo has lost 47.1% compared with the industry’s 28.5% fall over the past year.


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