PointClickCare is contemplating a public stock offering that the Wall Street Journal suggests could make PCC worth $1 billion.

Last week the Wall Street Journal published an article saying that Canadian Based EHR Company PointClickCare is considering going public. According to the article . . . “Health-care software company PointClickCare Corp. is working on a potential initial public offering for later this year, people familiar with the matter said.”

Disclosure: My wife works for PointClickCare.

Additional Details

  • They are looking at a potential $200 million offering that would put the total value of the company at around $1 billion.
  • It is unclear whether the stock will be listed in Canada or the United States.
  • Back in 2011 private-equity firm JMI Equity acquired a minority stake in the company for an undisclosed amount.
  • Foreign companies often prefer to be listed in the U.S. because there is a deeper pool of investors. In addition there is a certain status that comes with being listed on the New York Stock Exchange or Nasdaq.

Still the Wild, Wild West

It is clear that PointClickCare is the dominate player in the skilled nursing software space and, yet, it is startling how many other players exist, with more entering the market.   My initial reaction to companies looking to compete with PCC has been “good luck!” But . . . on reflection there may still be lots of opportunity:

  1. The First Winner is Often Not the Final Winner – There is no question that PCC has made cloud based EHR the standard way of doing things. The challenge is that first does not always mean best. Tablet devices were around before the iPad, but Apple improved the user experience to such a degree that those first and second generation devices no longer exist. The risk is that someone will look at what PCC built, say “Wow what a great idea. Now, how can we do it better by creating a better, faster user experience?”
  2. The Risk of a Shrinking Total Market – It seems inevitable that we will see a substantive decrease in total number of skilled nursing facilities and beds, driven first by a rapidly changing reimbursement system that is pushing to consolidate high pay/high profit residents in fewer facilities.   There is also substantial pressure to increase the use of medical model assisted living and home health to reduce costs and improve quality of life.
  3. The Assisted Living Wild West – There is no clear leader in this space. Many assisted living communities are still using paper to document the care given to residents. Most, if not all, ,skilled EHR providers including PointClickCare are chasing the assisted living market space. In addition, there are a bunch of assisted living only EHR providers. While there are not as many communities and the per patient day payment will be less than for skilled nursing, there is still real growth opportunity in this space.
  4. Hitting All the Bases – I find myself wondering if the big winner will be someone who creates a single platform that has a common data set for independent living, assisted living, memory care, skilled nursing, home health, private duty home care, hospice and has hooks to interface with rehab, physician and hospital systems.

So what do you think: is PointClickCare worth a billion dollars? Would you jump on the IPO?

Steve Moran

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