One of the biggest changes that may be coming in a post COVID-19 world is in healthcare. With so many hospitals having to shut down large portions of their operations in order to be ready for a surge in hospitalizations due to the virus, the financial future seems problematic. The disruptive potential in artificial intelligence (AI) technology is huge and it seems to be hitting at a just the right time.
When things normalize, it’s possible that the medical profession will have to streamline and it’s possible that they will be more inclined than ever to seek out technology as a means to reduce the size and cost of their workforce. With the Federal Reserve expanding liquidity, the Federal government handing out stimulus and low interest rates, medical care may be more poised than ever to automate using artificial intelligence.
The potential for AI in healthcare isn’t just about cost-savings, it’s about improving patient care. The opportunities in this field are virtually endless, but here are a few of the areas of opportunity. The ability of AI to assist in diagnosis, design treatment plans, assist in surgery and carrying out some of the more monotonous tasks of doctors and nurses are just a few areas that AI will likely expand.
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Looking for other AI names? Here are other posts on the topic.
Here are 4 companies to buy that are looking to reimagine healthcare using AI.
AI Company #1: Alphabet Inc Class C (NASDAQ: GOOG)
In January 2014, Google announced the acquisition of the London-based artificial intelligence company DeepMind for around $500 million. The purchase was in response to investments being made by other big tech names in deep learning and AI. Following profitability issues, Google’s healthcare unit decided to absorb DeepMind health and is focusing the organization on using AI to improve medical care.
Google Health announced the results of their program for identifying breast cancer. The company scanned data of nearly 76,000 U.K. women and 16,000 U.S. women and spotted breast cancer with greater accuracy, with fewer false positives, than the experts. The program was able to effectively screen for cancer using less information, relying solely on x-ray images.
AI Company #2: Intuitive Surgical, Inc (NASDAQ: ISRG)
ISRG was founded in 1995 and created one of the first robotic-assisted systems cleared by the FDA for laparoscopic surgery. The da Vinci surgical system allows for minimally invasive solutions using a small incision to allow the machine to enter the body. Currently the da Vinci system is allowed for urological and transoral surgical procedures. While the doctor is controlling the robotic arms, the company is utilizing AI and machine learning to improve their systems.
Fundamentally, the company is a great position with no debt and solid margins. For the trailing twelve months (TTM), the company has generated 30% net profit margins and 30.5% operating margins. The company has a 3-year average revenue growth rate of 17.7% and average EPS growth rate of 22.6%.
AI Company #3: Catasys, Inc (NASDAQ: CATS)
CATS is an AI-powered and telehealth-enabled treatment company that assists people with behavioral health and is expanding to other chronic physical conditions. The Catasys PRE is the artificial intelligence application that predicts people who will benefit from treatment, recommends care pathways and engages people who aren’t getting the care they need.
The platform’s ability to expand beyond behavioral health is a huge opportunity for them. The breakthrough capability for the Catasys PRE system to diagnose chronic conditions like cardiovascular disease, diabetes, and pulmonary disease is a big deal. The benefits extend to how quickly a diagnosis can be achieved, and the resources needed for a diagnosis.
AI Company #4: Globus Medical Inc (NYSE: GMED)
Another robotic surgery company is GMED. This company specializes in robotic-assisted spinal procedures. ExcelsiusGPS is their robotics and navigation system for doing musculoskeletal implants. Studies conducted on the use of the platforms pedicle screw placement achieved a 99% success rate and with no issues requiring further surgery.
GMED is a company with no debt and great margins with a net profit margin of 19.76% and operating margins of 22.23%. The company has a 3-year average revenue growth rate of 9.6% and a 12.1% average EPS growth rate.