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Lionseeker.com looks at how SCWORX, a NASDAQ company, transforms hospital operations amid financial challenges

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Lionseeker.com looks at how SCWORX, a NASDAQ company, transforms hospital operations amid financial challenges

January 16
21:20 2023

SCWORX provides SaaS solutions to hospitals that directly impact operational efficiencies and costs. It’s proprietary software allows hospitals to use existing systems to build a single source of truth for their data with over 1,300 hospitals currently using SCWorx solutions.

Hospitals are facing financial challenges for a variety of reasons, including rising operating costs, Additionally, hospitals struggle with inefficient processes and outdated technology, which contribute to financial losses.

Lionseeker.com has released an analysis on the unique value propositions SCWorx provides to hospitals as well as why it believes SCWorx is an example of a strong candidate for inclusion in a stock portfolio for 2023.

4 ways SCWorx is transforming the business of hospitals

1- SCWorx empowers hospitals with evidence-based and data-driven best practices

The truth is, most hospitals don’t have accurate data which causes them to spend excessively. SCWorx improves data accuracy considerably and provides integration and interoperability which is proven to help hospitals realize greater savings and recapture revenue lost. SCWorx cleans hospital data to ensures hospitals can rely on enabling better decision-making and reductions in product costs. Missed charges alone can account for a shortfall of over 10%.

2- SCWorx enables increased efficiency in hospital supply chain operations

When a hospital buys a product, entering the new item into a hospital’s system is cumbersome and fraught with errors. SCWorx has over 12,000,000 items in its Master List of hospital items each with 250 attributes collected. SCWorx allows the hospital to simply enter the SKU and their systems populate with the information from SCWorx database. This automated process eliminates hospital administration redundancy, provides greater product visibility, and facilitates the easy sharing of information. SCWorx’ solution is far quicker than the current error prone manual entry while ensuring accurate data.

3- SCWorx Delivers on the promises of the HITECH Act by making EPIC smart and hospital systems interoperable

No trend has been more consequential to healthcare than its adoption of technology. In 2009, the HITECH Act set in motion the adoption of technology to collect and exchange data about patient care from every touchpoint. In short, it forced EMRs to become accessible to and used by providers and patients. The EPIC system is used by hospitals to access, organize, store and share EMR.Epic holds information on a per patient basis. The problem is, they need to tie the patient to the utilization whether it’s a procedure or an office visit or whatever. There can be a hundred different locations within a hospital for utilization. Hospitals need to be able to tie all to one source. You can’t tie it back in one system to a person’s name, another system to the product, another to the insurance. EPIC creates a patient ID where everything ties back. The problem with that is it only ties back to a central point of utilization. It doesn’t tie back to supply and it doesn’t tie back to the general ledger. It doesn’t tie to reimbursements or rebates or anything else. When the legislation came in to digitize health records, that was the main goal and till now it has failed horribly.  SCWorx solves this problem.

There is a significant amount of slippage and inefficiencies from supply chain, over purchasing and lost charges.  Each disparate hospital system has its own code. Supply has its code. The patient has their code and finance theirs as does the operating room and the cath lab because they’re separate as well. There is an overwhelming amount of actionable data that is being lost due to not being able to look at it in totality or with confidence that it is accurate. SCWorx improves the flow of information quickly and accurately between the existing systems allowing for supply chain cost reductions, decreased A/R aging, accelerated and more accurate billing.  Individual clients of SCWorx have reported saving over $3 million dollars in annual cost savings and revenue capture.

4- Benchmarking hospital supply chain costs is achievable with SCWorx

Supply chain costs begin at the contract level. Having the ability to perform spend comparisons is essential to reducing costs and having a better understanding of your business yet is very hard to perform without corresponding data.SCWorx Solution is uniquely positioned to provide benchmarking to compare a hospital’s spend to similar hospitals.  As an example, a small hospital in New Hampshire might pay a different price for supplies than a major center in New York because the spend is that much larger. This ends up causing consolidation in the industry. There may be 15 rural hospitals in the New England area that on a consolidated basis buy through a larger Hospital for better pricing. The large hospital in an effort to take advantage of its new economies of scale may want to compare its spend to an even larger hospital in the Northeast. SCWorx solution allows the New England hospital the ability to compare the two entities and finds their costs to the comparable hospital are 20% higher on certain products. Once identified, the hospital can renegotiate its contract pricing. Contract renegotiation based on benchmarking can save a hospital upward of 20%.

SCWorx is positioned for growth

SCWorx has been building SaaS solutions for healthcare for over a decade. As an investment,SCWorx is currently trading at around 1X sales. A customary metric used for healthcare SaaS companies is between 7X ARR-14X ARR which would make SCWorx significantly undervalued. The company is positioned for growth having high client retention, large client long term value, a scaleable model, no debt, and one of the largest databases in an industry that has few players and none that can solve the problems as effectively or at the price point.To pick microcap stocks start by identifying the companies that serve markets in need of disruption. From an investment perspective, the above analysis meets such criteria for SCWorx. Microcap investing can involve significant risk due to low trading volume and lack of coverage however, there is the potential for outsized gains.  

THE FULL ANALYSIS IS AVAILABLE AT LIONSEEKER.COM

Media Contact
Company Name: Lionseeker
Contact Person: Philip Beer
Email: Send Email
Country: United States
Website: https://www.lionseeker.com

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