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LEHI, Utah - Waystar (WAY), a Nasdaq-listed healthcare payment software provider with a market capitalization of $7.3 billion and impressive revenue growth of 19.3% in the last twelve months, has unveiled its Auth Accelerate solution aimed at transforming the prior authorization process for healthcare services. The new offering automates the entire authorization submission workflow, promising a 70% reduction in processing time and a significant increase in auto-approval rates. According to InvestingPro data, the company maintains a strong gross profit margin of 66.5%, indicating efficient operations in the healthcare software sector.
Prior authorizations are a well-documented bottleneck in healthcare, often requiring up to 24 minutes per submission and contributing to delays in patient care. Waystar’s Auth Accelerate seeks to address these challenges by cutting down the average wait time for payer approval from over four days to less than one day. With a robust current ratio of 2.55, InvestingPro analysis shows the company has ample liquidity to support its innovative solutions and operational growth.
According to Waystar, the solution’s implementation has led to an 85% auto-approval rate for clients, improving efficiency and reducing the administrative burden on healthcare providers. This is a critical development given that a recent third-party survey highlighted automation for patient access, including prior authorizations, as the top investment revenue cycle priority for providers in 2025.
Matt Hawkins (NASDAQ:HWKN), CEO of Waystar, emphasized the strain that prior authorization processes place on healthcare resources and patient care. He stated that the new Auth Accelerate system allows providers to concentrate more on patients rather than administrative tasks.
Prisma Health, South Carolina’s largest healthcare organization, is among the early adopters of the Auth Accelerate system. Patrick Griffin, Executive Director of Revenue Cycle for Prisma Health, noted the significant difference the system has made for their administrative challenges and patient care.
In the backdrop of this launch, Waystar continues to expand its suite of healthcare payment solutions, recently introducing AltitudeAI™, which includes AltitudeCreate™, a generative AI tool to assist with denied claims appeals.
This announcement is based on a press release statement from Waystar. The company’s software is widely used across the healthcare industry, processing over 6 billion payment transactions annually, and serves about 30,000 clients, including major U.S. hospitals. Waystar’s innovations are part of its broader mission to simplify healthcare payments and allow providers to focus on patient care. Five analysts have recently revised their earnings estimates upward for the upcoming period, as revealed by InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Report, available for over 1,400 US stocks including Waystar.
In other recent news, Waystar Holding Corp. reported strong financial results for the fourth quarter of 2024, with revenue reaching $244 million, an 18% increase from the previous year. Earnings per share were reported at $0.29, surpassing analyst forecasts. The company has provided a positive outlook for 2025, projecting revenue growth between 7% and 10%. In terms of analyst activity, Canaccord Genuity, Goldman Sachs, and Evercore ISI have all raised their price targets for Waystar, citing strong financial performance and the company’s strategic growth initiatives. Canaccord Genuity increased its target to $50, while Goldman Sachs set it at $52, and Evercore ISI also raised it to $50, all maintaining a favorable rating.
Additionally, Waystar announced a public offering of 18 million shares by investment funds affiliated with EQT AB (ST:EQTAB), Canada Pension Plan Investment Board, and Bain Capital, though the company itself will not benefit financially from this sale. The offering is led by J.P. Morgan, Goldman Sachs, and Barclays (LON:BARC). Waystar’s recent product developments, including collaborations with Google (NASDAQ:GOOGL) Cloud, demonstrate its commitment to innovation and efficiency in healthcare payments. The company’s net revenue retention rate of 110% highlights its successful strategy in expanding client relationships, further supported by recent acquisitions and product enhancements.
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