Recently, Intuit Inc.’s (INTU) health services have been selected by St. John Providence Health System, a Detroit-based non-profit organization that owns and operates eight hospitals and over 125 medical facilities in Michigan. Financial terms of the deal were not disclosed.
As per the terms of the deal, Intuit Health will provide St. John Providence Health System with a patient portal that will enable practicing doctors and other service providers to interact with their patients online. The patient portal will help patients to access electronic health records (EHRs) and keep track of their ongoing treatments.
Intuit Health, the health care business division is a combination of Medfusion and the Quicken Health suite. The division provides communication solutions for patients and service providers. Intuit Health solutions make clinical, administrative and financial aspects of the health care system convenient. Currently, the company has ties with many leading health care IT companies, including Allscripts Healthcare Solutions Inc. (MDRX), General Electric Co. (GE), Greenway, Medicity and NextGen.
In May 2010, Intuit completed the acquisition of patient-to-provider communications solution provider Medfusion, at a cost of $91.0 million. By merging assets and strengths of the two companies, Intuit has produced an easy-to-use solution that will improve health care service, medical office efficiency and thereby, profitability.
According to a recent survey conducted by Intuit Health, 73% of Americans would prefer to use online communication solutions for filing medical forms, making appointments with doctors, securing lab results and settling medical bills. We believe that Intuit Health will be able to capitalize on the growing online healthcare opportunity.
Intuit is a leading provider of business and financial management solutions to small and medium-sized companies, consumers, accounting professionals and financial institutions.
Management is confident about gaining market share in its Small Business Group and Consumer Tax business, fueled by both accelerating customer growth and improving revenue per customer. However, we remain cautious on the stock based on the third quarter miss and stiff competition from H&R Block Inc. (HRB).
Current, Intuit has a Zacks #3 Rank indicating a short-term Hold rating.
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