LEHI, Utah – Waystar (WAY), a Nasdaq-listed healthcare payment software provider with a market capitalization of $6.1 billion, announced today the launch of new generative AI capabilities and advanced automation tools aimed at reducing the administrative waste in the U.S. healthcare system, which is estimated to be over $440 billion. The company, which has seen its stock surge over 70% in the past year according to InvestingPro data, will showcase these innovations at an Innovation Showcase event at 2 p.m. ET.
The new features are part of Waystar’s AltitudeAI™ suite, which is designed to enhance productivity and accuracy in healthcare payments. With a robust gross profit margin of 66.5% and revenue of $943.5 million in the last twelve months, Waystar’s CEO, Matt Hawkins, emphasized the transformative impact of their AI-driven platform, which has been delivering a significant return on investment and operational improvements for over a decade. InvestingPro analysis reveals multiple positive indicators for the company, including strong analyst confidence with 5 upward earnings revisions for the upcoming period.
One key innovation, AltitudeAssist™ in Claim Manager, is set to address the issue of insurance claim denials, which result in an estimated $20 billion in appeals costs annually. This tool uses generative AI to preemptively identify and resolve issues before claims are submitted, reducing the time taken from three days to about three minutes.
In an effort to expedite payments and reimbursements for providers, Waystar is introducing an automated insurance identification feature that operates continuously throughout the revenue cycle. This system has demonstrated the ability to accurately identify insurance coverage in under 30 seconds without manual intervention, as evidenced by early adopters.
Furthermore, Waystar is expanding access to its Digital First Billing, which caters to the growing demand for convenient online and mobile payment options. This service aims to enhance the patient financial experience by offering self-service payment options and reducing the reliance on paper statements.
The Innovation Showcase will cover these and additional platform enhancements. Waystar has been recognized for its industry leadership in innovation, with accolades such as multiple Best in KLAS awards and recognition by Black Book and Stevie Awards for its AI and automation solutions.
Waystar’s software is mission-critical, designed to simplify healthcare payments, allowing providers to focus on patient care and financial performance. The company processes over 6 billion healthcare payment transactions annually and serves about 50% of the U.S. patient population. With a strong current ratio of 2.55 and healthy liquidity position, InvestingPro data suggests the company is well-positioned for future growth, with analysts expecting profitability in the current fiscal year. For deeper insights into Waystar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The information for this article is based on a press release statement.
In other recent news, Waystar Holding has been the subject of several noteworthy developments. Goldman Sachs raised its price target for Waystar to $52, maintaining a Buy rating, following the company’s fourth-quarter 2024 performance, which surpassed revenue and profitability estimates by over $10 million and $5 million, respectively. Canaccord Genuity also raised its price target to $50, citing Waystar’s significant growth and a net revenue retention rate of 110% as factors for maintaining a Buy rating. Meanwhile, Truist Securities initiated coverage with a Buy rating and a $45 price target, recognizing Waystar’s potential to benefit from the healthcare industry’s shift towards automated solutions.
Waystar has launched its Auth Accelerate solution, aiming to reduce the processing time for healthcare authorizations by 70% and increase auto-approval rates significantly. The new system has already achieved an 85% auto-approval rate, addressing a critical bottleneck in healthcare services. Additionally, Waystar announced a public offering of 18 million shares by investment funds affiliated with EQT AB, Canada Pension Plan Investment Board, and Bain Capital, LP. The proceeds from this offering will not benefit Waystar directly but will go to the selling stockholders.
These recent developments reflect Waystar’s commitment to innovation and efficiency in healthcare payment solutions, positioning the company to capitalize on ongoing industry trends. The company’s recent product developments and strategic moves have reinforced analysts’ positive outlook, with expectations of continued growth and performance.
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