Firstsource Solutions bullish on healthcare industry
Business process management firm Firstsource Solutions has launched a cloud-based platform to support its healthcare vertical in the US.
The RP-Sanjiv Goenka Group company is transitioning to providing a business process-as-a-service (BPaaS) model for healthcare solutions. Firstsource clocked Rs 5079.2 crore in consolidated revenue in fiscal year 2021.
Its new solution will incorporate healthcare providers' revenue-cycle management and patient financial services offerings, and will soon be extended to the company's payer-oriented solutions, the company said in a press statement.
The cloud provides a centralised platform for Firstsource's customers to use its modular services as point solutions or as integrated end-to-end solutions. The company has over 1,000 hospitals as its customers in the US, and derives nearly 27 percent of its revenue from healthcare.
The company has given a guidance of revenue growth of 15-18 percent (in constant currency terms) for the current fiscal year.
In a research note dated July 30, brokerage firm Emkay Global said strong growth in the health plan and health services (HPHS) business and anticipated recovery in the health-provider business will drive revenue.
"We are beginning to see a wider acceptance of our platform-based solutions, and increased participation in large transformational deals," said Vipul Khanna, CEO of Firstsource Solutions, in an earnings call in July, about the healthcare segment.
Firstsource's HPHS business recorded its highest (quarterly) to date contract-value in its history from new and existing clients, Khanna added.
In February 2020, the company appointed Venkatgiri Vandali as president of its HPHS business. It “revamped the sales and account management engine, and bolstered the operations and solutions leadership for this business,” Khanna told analysts in the earnings call. The company is now working with six of the top 10 health plans in the US, he added.
Firstsource has invested significantly in healthcare solutions, which will drive significant growth, brokerage Edelweiss said in a research note on August 18. It has appointed Lauralea Tanner to lead the health-providers business to drive sales, solutions and partnerships from the US.
The US contributes nearly 68 percent of Firstsource's total income. Firstsource acquired a healthcare revenue cycle management solutions provider PatientMatters in December last year, aiming to integrate different medical bills related workflows.
“Addition of leadership in sales & delivery (especially in healthcare), penetration in technology segment, cross-selling of platforms business, increase in deal size, and focus on client mining bodes well for long term growth,” stated ICICI Direct in a research report dated May 12.