Tomahawk, WI 8/15/2013 (Basicsmedia) – There are numerous healthcare challenges which companies operating within this industry must overcome for their own survival. Reports indicate that the industry has been losing close to 500 people everyday, as a result of accidents, human errors and infections. Healthcare industry is in a mess, and there is need for this to be cleaned up so that companies such as MRGE, and others of a similar nature, can continue providing their services to patients. Some healthcare providers are guilty of advising their patients to go through procedures which are not necessary at all.

Let’s not forget that healthcare is quite expensive and beyond the reach of many patients. Added to this is the fact that some procedures which may be recommended by healthcare specialists, are not covered under medical insurance thus forcing patients to dig deeper into their own pockets and resources to pay these fees. One of the most common procedures is one known as early elective deliveries where women who are into their 37th-39th week of pregnancy are asked by their healthcare providers to undergo the same. These deliveries are unsafe and quite costly.

MRGE Needs To Be Innovative To Attract Profits

It is in such an environment that Merge Healthcare Inc. (NASDAQ:MRGE) has to operate. Therefore, based on the current situation being experienced in the healthcare industry, it doesn’t come as too much of a shocker to notice that the company may have reported profits, but its revenues weren’t what was really expected. All in all, the company failed to meet the figures which analysts, especially those in Wall Street, had estimated. Shareholders must have been quite taken aback by the revenue miss as reported by MRGE.

It’s not the shareholders only who were displeased by what happened with Merge Healthcare Incorporated (NASDAQ: MRGE), in terms of the recently announced financial results. The disappointing results affected the top managements as well, as was demonstrated through the speech made by the Chairman of the Board, Michael W. Ferro Jnr. Incidentally he is also the largest shareholder. While there are fears that the company could be heading back to where it was rescued from five years ago, there is reason to believe that the current situation is a one-off.

MRGE Must Operate Under Stable Leadership

The decision by top executives at MRGE to continue operating under the leadership of Nancy Koenig and Justin Dearborn, is quite commendable. The two were responsible for getting the company out of the financial mess it found itself under some five years ago. It appears that the board is still convinced that the two can get the firm out of the financially poor results which were recently announced. This demonstrates that the two enjoy confidence from the board, and they need this in order to overcome the challenges facing the company and industry as a whole.

As an analyst, I believe the company’s future outlook is not so bad. I think the company is in a good moment and that this will be replicated in its financial results to be released in the next quarter. If the healthcare industry picks up and cleans all the mess found therein, companies such as Merge Healthcare, which has a market cap of around $227.12 million and depend on this sector, will benefit greatly. Some of the competitors this company deals with include GE Healthcare Ltd, and McKesson Corporation, to mention a few.

MRGE has a lot of work to do in order to catch up with companies such as Cerner Corporation (NASDAQ:CERN) which is a top performer in this industry, but hopefully it will get there.

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