|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
DECEMBER 15, 2003
High Tech At The Hospital  Little-known Computer Programs & Systems (CPSI
), which designs information systems for rural hospitals, has been under the weather -- till lately. The stock dropped from 21 in June to 14 in October. It has since perked up -- to 17.83 on Dec. 3. Some pros think CPSI will get a boost from the recent $400 billion Medicare bill. The new law, says Joel Ray of Wachovia Securities, raises reimbursements to rural hospitals by an estimated $25 billion over 10 years.
Dennison Veru of Palisades Capital Management, with a 7.1% stake in CPSI, notes that 500 small hospitals (fewer than 300 beds) in 45 states use CPSI to manage patient-care, clinical, and financial data. Among America's total of 4,900 rural hospitals, 80% are this small. With Medicare's cash infusion, many of these will now have funds to install CPSI gear to cut costs, says Veru. Analysts haven't yet adjusted their numbers to include the impact from the new bill. James Terwilliger of securities firm Morgan Keegan, who rates CPSI outperform, estimates earnings of 75 cents a share in 2003 and 94 cents in 2004 -- before any Medicare effect. Veru says "earnings should kick up" by 2005. He sees the stock at 30 in a year. Note: 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.  By Gene G. Marcial Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2003, Bloomberg L.P.Terms of Use | Privacy Notice |
Printer-Friendly Version
