Reducing the costs of healthcare is a priority for hospitals and health systems in the United States, and excess inventory of products and equipment is one area where there is waste.
One company aiming to change that is H-Source Holdings Ltd. (HSI:TSX.V; HSCHF:OTCQB). Through its 100%-owned subsidiary H-Source Inc., the firm "has developed a transaction platform that provides a private, secure and trusted marketplace for member hospitals to buy, sell and transfer excess inventory supplies and capital equipment with each other."
The platform also allows Integrated Delivery Networks (IDNs) or groups of hospitals to communicate with each other privately to buy and sell independently. According to H-Source, "issues such as: outdates, physician preference changes, restrictive manufacturer return policies, contract changes, product upgrades, multiple ownerships and software systems cause billions of dollars of losses for our hospitals annually."
Hospitals and health systems are starting to see benefits. Earlier this year, H-Source noted that members of the Colorado Hospital Association have seen positive financial impacts from using the H-Source platform. "Based on some initial numbers, the participating hospitals would have needed to generate approximately $8.4 million in new revenue in order to realize the same dollar value in recovered cost from H-Source transactions," the company stated.
The company just released financial results for Q1/18 and noted the following operational highlights:
- Q1 revenue growth increased sequentially by 39% to $294,458, consisting of $241,361 as revenue and net commission sales of $53,097;
- Contracted facilities that have signed up to participate on the network increased by 4% to 1105; platform participants now include IDNs, hospital associations, surgery centers, post-acute and hospital pharmacies;
- Active facilities that have bought or sold on the network reached 215, a 12% increase over Q4;
- Total value of inventory on the platform available for sale grew to $1,643,100 at the end of Q1.
H-Source CEO John Kupice commented, "We anticipate material revenue growth into Q2 as we are currently experiencing both increased transactions and active hospitals growth. We continue to engage in discussions with new healthcare facilities and expect continued adoption across the U.S. As more facilities continue to experience the cost savings of the platform, it results in increased transactions. 2018 is the year that we build meaningful revenue growing each quarter."
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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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