PASO Prospects FWIW:
In a nutshell, the Health Care segment is growing by leaps and bounds. In 2008, there were a couple dozen players in the market in the NYC area, currently, there are a couple hundred. Some of these players have big pockets and are aware that to remain viable, technology will be the key.
So, why now for PASO? This is my guess:
1. There is a national recognition that transitional care needs to be improved as in it's current state, there are lots of inefficiencies. There is a significant effort to move towards HMR / HIE technology.
EMR Technology: New York State is implementing a 'risk adjusted payment system' for providers in this market. A patient's clinical status must be transmitted to the state electronically and easily supported in the patient's medical record. Manual medical records do not allow for clinical data to be synthesized in any large scale manner. For many reason, which I won't go into here, those using manual systems are at a competitive disadvantage and will not be able to compete with those who have implemented a robust patient-care / patient record suite.
HIE Services: Improves access to critical medical information. If I am hospitalized but my home care vendor is part of an HIE, the hospital can access my diagnoses and medications if I/ caregivers cannot provide this information when needed for critical care. As part of the HCRA (Health Care Reform Act), hospitals also wont be reimbursed if someone is re-admitted within 30-days for the same condition, so access to this information becomes vital for the financial viability of hospitals now. The importance to having medical records available has also gotten the attention of Google...yes Google (do a search for Google Health and you'll see what I mean).
Other technology that PASO has developed: During the passage of the HCRA (Health Care Reform Act), it is stipulated that something like 87% (I might be wrong with the exact number, but you'll get my drift) if funds provided to health care service providers (HMO's, etc) are required to be spent on direct patient care. Staffing and real estate are the costliest overhead items....reduced by employing a mobile workforce where technology offered by the likes of PASO is a necessity. You can have a small office with 100+ employees if they work from home / in the field by being equipped with the technology referenced by PASO (and others in this segment).
Why now? 2011 budgets have likely just been determined and technology vendors are likely being selected for system changes, upgrades or implementation. With the movement toward greater emphasis on transitional care, HIE's, EMR's. Health Care vendors have to implement related technology to stay competitive and to prepare for state / government mandates as well as cuts to Medicaid.
That's my guess as to why there might be current interest in PASO and why they might be poised to do well at this point in time. Of note is the company indicates their focus is also the financial industry. A more diversified revenue stream never hurts, but that market segment I cannot speak on. I've said a lot. I'll try and post some links that can provide those here with some references backing up the above. Does this mean PASO is the place to be? No. That will depend on their success penetrating this marketplace with their products.
GLTA!
