Baird Global Healthcare Report 2016-2017 Global Healthcare Report - Page 12

Global Investment Banking Institutional Equities & Research Baird Capital A Prescription for Growth Baird Capital’s Outlook on Infection Prevention and Control AUTHORS MICHAEL LIANG PARTNER BAIRD CAPITAL NICOLE WALKER PRINCIPAL BAIRD CAPITAL With an increased focus on hospital-acquired infections (HAI) and managing associated costs, many hospitals increasingly look to market on the quality of the care they deliver. Today, consumers can go online to find HAI rates and penalties paid for every hospital in the nation, using that information to make choices about where they will seek care. Payers can reference these data to determine negotiating terms. The potential bottom-line impact on hospitals, along with increasing fervor around patient advocacy and rising concerns about antibiotic-resistant bacteria, have been catalysts for the ongoing investment activity and opportunity in the infection prevention and control space. 10 When people are admitted to hospitals, they typically expect to be cured versus discharged with a new infection due to exposure or a procedure. However, this phenomenon is fairly common. The U.S. Department of Health and Human Services reports that  in  hospital patients has a healthcare-associated infection at any given time, and these infections generate approximately $ billion to $ billion in preventable costs annually. Additionally, a  study published in JAMA Internal Medicine found that infections acquired in hospitals account for $. billion in costs each year. Infection prevention and control is compelling from an investment perspective for a number of reasons. BREADTH OF IMPACT Hospitals and healthcare systems are certainly a primary focus for companies focused on infection control, but these technologies and services are relevant across other areas, including the food safety area, the agricultural market and diagnostics for the identification of new outbreaks and strains. CLINICAL STUDY PROCESS Clinical studies typically involve a long duration for patient enrollment and follow-up, and the results can be quite varied