Mohan Naidu, CFA, is Managing Director and Senior Analyst, Healthcare Information Technology of Oppenheimer & Co., Inc. Mr. Naidu joined Oppenheimer from Stephens, where he had been a senior analyst covering HCIT since 2013. Prior to Stephens, Mr. Naidu spent five years as a member of the highly ranked HCIT equity research team at Piper Jaffray & Co. Before his career as a research analyst, Mr. Naidu worked at GE Healthcare IT for seven years, first as a senior lead system designer and later as a product development manager.
In his exclusive interview with the Wall Street Transcript, Mr. Naidu reviews the current investment landscape for health care software services stocks: “I would say the companies that have been providing what I call electronic health records are going to struggle a bit in the next 12 months, but outside of that, the niche vendors that provide productivity enhancement and work resolutions to hospitals are going to grow a lot because the hospitals have continued to spend and focus on trying to help the physicians and clinicians expand or at least improve their workflow in the post-electronic-health-record environment. Of course, there are newer services around telehealth and consumerization of health care, and also even the changing reimbursement angle. All these three subareas are going to really get a lot of tailwind, not just in the next 12 months but probably the next five years or so.”
“The other company that I am really excited about is HealthEquity (NASD:HQY), which is a company that manages and provides technology and services to employers so that they can actually provide the platform for employees to manage their high-deductible plan/HSA accounts. In the next five years, most of the employers, at least the larger ones, will move away from predominantly copay-based plans to deductible, high-medium plans, we believe. Employers are trying to find ways to get the employees more involved with health care costs, and there is no better way, we believe, at least at this point, than a combination of a high-deductible plan and an HSA, where an employee or a family will have a $6,000 to $7,000 deductible that can be put in an HSA account.”
For all the details and more picks and pans from Mr. Naidu in this growing business sector, read the entire interview in the Wall Street Transcript.