Yesterday, Telus Health announced the acquisition of MD Practice Software LP, the electronic medical records business of the Canadian Medical Association.
The move, says Telus, will make it Canada’s largest EMR provider.
Telus Health Presdient Paul Lepage said the move will mean general improvement in the health care system for all Canadians.
“Telus Health firmly believes that by securely connecting physicians to the broader health care continuum and facilitating confidential interactions between the patient and their full care teams, we will further realize our vision of turning information into better health outcomes,” he said. “This acquisition is part of Telus Health’s future vision for next generation EMR, which enables us to examine best practices, drive efficiencies and reduce care gaps throughout the health care system, resulting in strengthened primary care access for Canadians.”
Yesterday’s acquisition was the third by Telus in the past year, following the pickup of Wolf Medical last February and KinLogix in October.
Industrial Alliance analyst Steve Li says Nightingale Informatix (TSXV:NGH) is a prime candidate to be TELUS Health’s next consolidation target. He says Telus’s acquisition of Practice Solutions will have minimal impact on Nightingale because Nightingale is supported by a large backlog of work, such as contracts with MCI Medical Clinics, Six Nations Health Services, and AOHC. Li says Nightingale should post Q3 revenue of $5.8M, up 12.9% year-over-year, when it reports tomorrow, a number driven by the continued deployment of several large ongoing contracts. In a research update to clients this morning, Li reiterated his Strong BUY recommendation and 12-month target price of $0.75 on Nightingale Informatix.
Formed in 2002, Nightingale has become one of the fastest growing health care IT service and software and electronic medical records companies in North America. At the end of Q1, 2013, the company had more than 12,500 practitioners in its customer base, up more than 5000 from a year prior. Li says the adoption rate of EMR is quickly trending upwards, but at a penetration rate of 37% in Canada and 46% in the United States, Nightingale still has a lot of runway for growth.
Shares of Nightingale Informatix closed today down 2.17% to $0.225.
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