For Immediate Release
Chicago, IL – April 29, 2021 – Today, Zacks Equity Research discusses Medical Service, including Avantor, Inc. AVTR, Eurofins Scientific SE ERFSF, GoodRx Holdings, Inc. GDRX, Apollo Medical Holdings, Inc. AMEH and COMPASS Pathways plc CMPS.
The COVID-19 crisis has drastically transformed the fortune of the medical services industry. Since the onset of the pandemic, with digital healthcare treatment becoming indispensable, the industry has been witnessing significant demand for telemedicine-focused online medical and AI-powered technology services.
Companies in the remote healthcare space have seen their stocks rally amid the economic volatility. Avantor, Eurofins Scientific, GoodRx Holdings, Apollo Medical and COMPASS Pathways are a few such stocks. However, at the same time, the resurgence of new COVID-19 cases has dealt a blow to manual workforce and healthcare infrastructure as patients are once again deferring their non-essential procedures and hospital stay.
The Zacks Medical Services industry comprises third-party service providers and caregivers appointed by core healthcare companies for economies of scale. The industry includes pharmacy benefit managers, contract research organizations (CRO), mobile and wireless medical technology companies, third-party testing labs, surgical facility providers, and healthcare workforce solutions providers among others.
Over the past few years, the healthcare industry has strategically moved from volume- to value-based care. This changing pattern of care calls for efficient and better-quality facilities, thus gradually increasing the need to appoint specialized external service providers.
In recent times, biotechnology and pharmaceutical companies have often been seen outsourcing clinical development and data-solution services to improve quality of medical care at competitive costs. With growing importance of effective healthcare management, the medical service industry has become an integral part of the modern healthcare mechanism.
4 Trends Shaping the Future of the Medical Services Industry
COVID-Led Procedure Deferral May Continue: Undoubtedly, the medical service sector’s overall response to the pandemic has been resilient and the recent vaccination rollouts appear to be the light at the end of the tunnel. However the fast-mutating SARS-CoV-2 through its constant process of bringing in new virus variants is once again raising questions about the sustainability of the ongoing economic rebound process.
From November till February, the resurgence of the new wave resulted in limited and regional stay-at-home restrictions. This majorly deferred non-essential and elective procedures. If this situation recurs, it might once again impact the non-COVID healthcare infrastructure, pulling down their revenues.
Digital Revolution Amid the Pandemic: With an increase in the adoption of digital platforms within the medical device space, remote monitoring, robotic surgeries, big-data analytics, bioprinting, 3D printing, electronic health records (EHR), predictive analytics, real-time alerting and revenue cycle management services are gaining prominence in the United States.
A June 2020 Digital Health Market report suggests that this market, valued at $106 billion in 2019, will grow at 28.5% CAGR through 2026. Various other reports suggest that companies that adopted artificial intelligence technologies witnessed a 50% reduction in treatment costs and also experienced more than 50% improvement in patient outcome. Amid the pandemic, this line of healthcare is becoming a major choice for contactless healthcare services.
In 2020, the Centers for Disease Control and Prevention asked healthcare service communities to increase the use of telemedicine. Added to this, the House passed an emergency spending bill, allowing…