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HMS Holdings expects $30 million revenues from commercial market
By Sahara Marte
New York, June 4 - HMS Holdings Corp. sees a significant opportunity for growth in the commercial market thanks to technology acquired when it bought HealthDataInsights Inc. late last year, Walter Hosp, executive vice president and chief financial officer, said at the Jefferies 2012 global healthcare conference.
HMS Holdings had over $300 million in Medicaid revenues in 2011, more than $25 million in Medicare revenues, and about $7 million in commercial revenues. The company expects commercial revenue -the entire healthcare sector outside Medicaid and Medicare - to rise to $30 million by the end of 2012, said Hosp.
In 2011, there was a total of about $125 billion in payment errors; more than $40 billion were commercial payment errors, the market HMS Holdings is targeting to penetrate, he said. The total in payment errors is expected to rise to over $150 billion by 2015.
"We have, with the HDI products and a dozen or so other products through HMS Holdings, a very compelling opportunity to grow into the commercial market longer term," Hosp said. "We should be able to do better than any internal unit of a large health insurer, but that will take time to bear itself out."
HealthDataInsights technology is serving as the basis for HMS Holding's innovations. HealthDataInsights services are being offered to clients of HMS Holdings, and vice versa. The company acquired HealthDataInsights in December 2011 for $400 million, and it has yielded an annual revenue growth rate of 75%.
HMS Holdings has an organic growth rate of 20%.The company has recovered over $2 billion in hard dollars from the Medicaid market, and HealthDataInsights acquires millions per quarter in the Medicare market.
HMS is a New York-based coordinator of benefits and program integrity services for health care payers.
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