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Salesforce.com Invests in Healthcare with Practice Fusion Deal

Strategic Insights

— 1 min read

Zacks Equity Research analysts highlight the benefits of investing in Practice Fusion, an electronic health records company, as part of a deal with Salesforce.com (NYSE: CRM). The agreement will generate around $1.0 million in revenue annually, leveraging Salesforce.com's cloud computing model to enhance value for customers. This development comes as the federal government passes a bill with incentives for medical practitioners and hospitals to adopt electronic record-keeping software.

As other companies like Wal-Mart (NYSE: WMT) and Google Inc. (Nasdaq: GOOG) also enter the healthcare segment, Salesforce.com is poised to capitalize on the growth of electronic health records. This trend is driven by healthcare professionals adopting paperless offices, recognizing the benefits of accessibility and convenience provided by electronic records.

Key Takeaways:

  • Salesforce.com (NYSE: CRM) invests $10.0 million in Practice Fusion for a marginal stake, generating around $1.0 million in revenue annually.
  • The deal combines Practice Fusion's EMR product line with Salesforce.com's cloud computing system to enhance value for customers.
  • The federal government's bill with incentives for medical practitioners and hospitals to adopt electronic record-keeping software is expected to generate additional business for companies like Salesforce.com.
  • Wal-Mart (NYSE: WMT) and Dell Inc. (Nasdaq: DELL) are also collaborating to enter the healthcare segment through electronic health records.
  • Google Inc. (Nasdaq: GOOG) and Microsoft Corporation (Nasdaq: MSFT) have launched personal health records storage systems, supporting the growing trend of electronic health records.
  • Growth in the electronic health records segment is inevitable due to increased adoption by healthcare professionals, recognizing the benefits of a paperless office.

Statistics:

  • $30.0 billion: The federal government's incentives for medical practitioners and hospitals to buy and use electronic record-keeping software.
  • $10.0 million: The amount Salesforce.com is investing in Practice Fusion for a marginal stake.
  • $1.0 million: The revenue generated annually from the deal between Salesforce.com and Practice Fusion.
  • 1,150: The number of publicly traded stocks continuously covered by Zacks Equity Research analysts.
  • 6 months: The time horizon for recommendations and target prices provided by Zacks Equity Research analysts.

Sources:

  • Zacks Equity Research: Analyst Blog, "CRM Focuses on Healthcare"
  • Zacks.com: Salesforce.com (NYSE: CRM) - Historical Prices
  • Zacks.com: Wal-Mart (NYSE: WMT) - Historical Prices
  • Zacks.com: Dell Inc. (Nasdaq: DELL) - Historical Prices
  • Zacks.com: Google Inc. (Nasdaq: GOOG) - Historical Prices
  • Zacks.com: Microsoft Corporation (Nasdaq: MSFT) - Historical Prices

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