Medical Transcription Billing, Corp. (MTBC) Poised to Capitalize on Sector Growth through Integrated Cloud-Based HCIT, EHR Offerings

A recent global industry analysis and forecast report (http://nnw.fm/1pn7S) on the healthcare IT (HCIT) market by Allied Market Research, pegged the global HCIT space at around $125 billion last year, with a forward projection of 13.2 percent CAGR through 2022, when it may reach just under $300 billion. The global electronic health records (EHR) component itself was worth around $19 to $21 billion just two years ago and should see anywhere from 5.3 to 6.2 percent CAGR over the next half-decade or so, based on extant analysis by Infiniti Research (http://nnw.fm/Hiw8I), P&S Market Research (http://nnw.fm/JW6jY), and Transparency Market Research (http://nnw.fm/YTFk6). Globally, mHealth is the real barn-burner, at around $13.7 billion last year, and it’s set to post a 34 percent CAGR through 2022 (http://nnw.fm/PCYr8).

Medical Transcription Billing, Corp. (NASDAQ: MTBC) (NASDAQ: MTBCP), which has declared monthly cash dividends (http://nnw.fm/sTn5q) for its 11% Series A Preferred Stock (MTBCP) every month since the shares were issued in November 2015, has been gaining significant ground and constantly innovating in this arena of late. The company’s fully-integrated (Meaningful Use Stage-2 Certified), web-based SaaS platform and extensive competencies spanning cloud-based EHR (http://nnw.fm/1i4GL), practice management (http://nnw.fm/ja0GM), patient engagement (http://nnw.fm/mM9JM), and mHealth (http://nnw.fm/V6eFW) led to MTBC being named to Deloitte’s Technology Fast 500™ (http://nnw.fm/0Den0). MTBC’s ChartsPro™ (http://nnw.fm/4TzhT) for instance, is an inherently intuitive, practice management and KLAS-ranked (http://nnw.fm/rnD7U) EHR platform capable of automating clinical practices, ranging from charts and lab tests to claim creation. Providing such amazing solutions to healthcare practitioners certainly does get you noticed by kingmakers like Deloitte, but MTBC’s 130 percent revenue growth from 2012 to 2015 is what sealed the deal.

The HCIT market in North America is on course to reach $104 billion by 2020, according to MarketsandMarkets (http://nnw.fm/nus0Y), outpacing global growth at around 13.5 percent CAGR. Of that, the healthcare provider solutions segment looks sizzling, at around 16.5 percent CAGR. With a Trump administration set to take the reins, momentum could increase substantially as well, given ACA (Obamacare) change-up metrics, backed by a strong commitment (http://nnw.fm/ks4V0) to “broaden healthcare access, make healthcare more affordable, and improve the quality of the care available to all Americans.” We have a dyed-in-the-wool serial entrepreneur and renowned businessman picking up the executive pen here, and for a company like MTBC, there could be considerable upside.

Even without added momentum, MTBC has been doing great and was pleased to announce earlier in November, yet another quarter-over-quarter revenue growth success (http://nnw.fm/n2OGx), with $5.3 million for Q3, and $15.7 million YTD. Among the key highlights here is a potentially huge and emergent vector in the form of a series of key acquisitions, such as Texas-based medical billing company MediGain (and its New Jersey-based subsidiary), which has opened up vast, untapped market space for MTBC that should contribute mightily to 2017 revenue growth. The acquired accounts (in good standing) have annual revenues over $10 million and hold the potential for “exponential growth,” according to MTBC’s chairman, founder and CEO, Mahmud Haq.

Haq isn’t just whistling Dixie about the potential for exponential growth either, MTBC has a proven track record of doing precisely that, and without immediate access to similarly broad, established markets. The MediGain acquisition could be the start of something really beautiful for MTBC. It’s worth noting that this is the former VP of Global Risk Management for American Express (NYSE: AXP) we’re talking about here; Haq is not inclined to hyperbole. With a suite of offerings that go far above and beyond medical billing, MTBC has seriously distinguished itself among healthcare providers. Tools like PracticePro™ (http://nnw.fm/b4LWh), for example, drastically simplify the complexities of practice management, encompassing everything from initial scheduling to remittance tasks following a patient’s visit. Winning capabilities like this have allowed MTBC to readily differentiate itself in an increasingly saturated market alongside other players like HCIT provider Allscripts Healthcare Solutions (NASDAQ: MDRX), or supply automation streamliner Omnicell (NASDAQ: OMCL).

The capacity to really leverage new market access for exponential growth comes down to providing innovative, easy to use solutions that are ahead of the game, like MTBC’s CareConnector™ (http://nnw.fm/x8Km3) patient engagement solution, as well as the company’s robust toolkit of mHealth native apps (http://nnw.fm/fNv2b) for iPhone and Android devices, which integrate seamlessly with the company’s suite of products and services.

The true strength of the company’s in-house developed, integrated cloud-based technology platform and its wholly-owned offshore subsidiaries, with over 1,800 employees in four countries (labor costs one-tenth of the competition) across three continents – is something that has to really be looked at in detail if one is to appreciate the ingeniousness of it. The labor-intensive aspects of the business model that can be reasonably and effectively outsourced without compromising maximum quality of services have been, and at the core of the operation is a powerful, proprietary, in-house developed tech platform that is already ahead of the curve in terms of the industry standard.

MTBC’s CFO, Bill Korn, emphasized this one-two punch earlier this year in a late October audio interview (http://nnw.fm/7wSLk) with multifaceted financial news and publishing company, NetworkNewsWire (http://nnw.fm/IOVq4). That interview is a great place to start, but investors should take an even more detailed look at MTBC’s extremely agile business model, its proven ability to differentiate itself from competitors in a burgeoning space, and the underlying transformative factors within the industry itself, which are driving HCIT and EHR markets to new highs.

To dig deeper, visit www.mtbc.com, and also check out MTBC’s latest fact sheet at http://ir.mtbc.com/events.cfm.

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