ATHENAHEALTH, THE DOCTOR'S FRIEND
ATHENAHEALTH, THE DOCTOR'S FRIEND
In times of economic woe, doctors get more cost- conscious. So demand is rising for the services of Athenahealth (ATHN), the largest publicly traded provider of Web-based systems that automate and manage billing-related functions for physicians. It has over 13,500 medical providers in its national network.
Athena's services help health providers get "faster reimbursement from payers, reduce errors, hike collections, cut costs, and efficiently manage clinical and billing information," says Richard Close of investment firm Jefferies (it has done banking for Athenahealth), who rates the stock a buy.
Sean Wieland of Piper Jaffray says Athenahealth (a client) is largely insulated from the economy's swings by its fee-based revenues. He rates the stock, now at 26, a buy with a year's target of 37. He sees profits of 55 cents a share in 2008 and 65 cents in 2009, vs. 26 cents in 2007.
Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
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