ProxyMed predicts $50M in revenues in break-out’ year
A Healthcare InfoTech Staff Report
Fast-growing ProxyMed (Fort Lauderdale, FL), which connects physicians with pharmacies, laboratories and insurers through its on-line network, said that revenues in 1999 will reach more than $50 million.
Harold Blue, chairman and C EO of the fast-growing firm, said Thursday that Proxymed will beat analysts’ estimates for both earnings and revenues in the fourth quarter and fiscal year ended Dec. 31. "We’re going to beat our numbers easily," Blue told Dow Jones News Service, adding that 1999 will be "a break-out year in every way" for the company.
Analysts’ estimates are that the company will post a loss of 29 cents a share in the fourth quarter and a loss of 88 cents a share for the year as a whole, but Blue said both estimates will be beaten. He said fourth-quarter revenues will exceed $11 million, triple the year-earlier figure, and said first-quarter revenue will climb to more than $12 million from just under $5 million a year ago.
The company said it will introduce several new, web-based physician desktop products at the Healthcare Information Management Systems Society conference in Atlanta next month that will allow doctors to use the Internet to connect with laboratories and pharmacies.
ProxyMed’s network connects some 200,000 physicians, 38,000 pharmacies and 2,000 laboratories to about 600 insurance companies and most managed care organizations. It gains its revenues from fees paid for each electronic transaction. Blue said the company completed 60 million transactions both clinical and financial in 1998.
In other company news, ProxyMed said it has an agreement to process claims for Epic Systems (Madison, WI),. whose clients include more than 300 physicians groups.
Earlier this month, ProxyMed completed its first acquisition of 1999, paying nearly $22 million for Key Communications Service (New Albany, IN), a privately held hardware and software maker. It followed that up with a Jan. 12 announcement of an agreement to acquire the electronic data interchange assets and business of Specialized Medical Management, the financial transactions processing subsidiary of Texas Health Resources, for $1 million in cash. The deal is expected to close by the end of this month.
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