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Discover (DFS) and TYDEi to Digitize Healthcare Purchases

Discover Financial Services’ DFS payments brand Discover Global Network recently joined forces with vendor management platform provider TYDEi Health to devise a solution for easing healthcare purchase payments.

Shares of Discover Financial lost 0.7% on Oct 5, replicating declines in the broader markets.

The platform of TYDEi serves as a connection point between hospitals and suppliers in respect of purchases conducted by hospitals. The healthcare purchasing process is made a hassle-free one as the platform shifts the procurement process to a block-chain enabled platform that minimizes costs and risks for hospitals.

The partnership with Discover Financial’s payments brand is expected to aid TYDEi’s payments platform in extending a seamless and secure digital payment facility to hospitals, which can also monitor payments made for supplies. All this is possible through the enhanced payment solutions of Discover Financial.

The ulterior motive of the recent tie-up lies in digitizing and easing payments in the healthcare industry that continues to grapple with headwinds stemming from the usage of manual paper checks within the purchasing process. Therefore, the partnership seems to be aptly timed in countering the wastage of time and inefficacies linked to healthcare invoicing through enhanced solutions. Also, the alliance is perfectly timed considering the widespread infusion of digitization into every sphere of life.

Management at the Lighthouse Surgery Center, one of the immediate beneficiaries of the recent collaboration that utilizes the TYDEi platform, believes that the partnership of TYDEi with Discover Global Network will greatly benefit its system and productivity. Subsequently, it might get relieved from its obsolete and tedious purchasing, supply chain and inventory management systems.

The latest initiative highlights Discover Financial’s concerted efforts to leverage its advanced payment solutions in penetrating an extensive healthcare payments sector. Apart from catering to the healthcare space, Discover Global Network reaches out to ease payments of various industries, such as transportation, higher education, government, insurance and gaming.

Partnerships like the one with TYDEi can only add to the strength of the Discover Global Network, which contains an extensive cardholder base of above 280. The network boasts more than 60 million merchant acceptance locations, and 1.8 million ATM and cash access sites. It also comprises Discover Network, Diners Club International, PULSE and a global alliance partner network, with a strength of more than 25.

Shares of Discover Financial have lost 11.5% in the past six months compared with the industry’s decline of 19.4%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Discover Financial currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Finance space are Bank First Corporation BFC, Cathay General Bancorp CATY and First Business Financial Services, Inc. FBIZ. While Bank First flaunts a Zacks Rank #1 (Strong Buy), Cathay General and First Business Financial carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bank First’s earnings surpassed estimates in three of the trailing four quarters and missed the mark oncee, the average being 2.25%. The Zacks Consensus Estimate for BFC’s 2022 earnings suggests an improvement of 9.1%, while the same for revenues suggests growth of 13.1% from the corresponding year-ago reported figures. The consensus mark for BFC’s 2022 earnings has moved 1% north in the past 30 days.

The bottom line of Cathay General outpaced estimates in each of the last four quarters, the average being 3.88%. The Zacks Consensus Estimate for CATY’s 2022 earnings suggests an improvement of 24%, while the same for revenues suggests growth of 19.5% from the corresponding year-ago reported figures. The consensus mark for CATY’s 2022 earnings has moved 0.4% north in the past 60 days.

First Business Financial’s earnings surpassed estimates in each of the trailing four quarters, the average being 21.61%. The Zacks Consensus Estimate for FBIZ’s 2022 earnings suggests an improvement of 3.8%, while the same for revenues suggests growth of 9.2% from the corresponding year-ago reported figures. The consensus mark for FBIZ’s 2022 earnings has moved 4.1% north in the past 60 days.

Shares of First Bank and First Business Financial have gained 9.9% and 4.1%, respectively, in the past six months. However, the Cathay General stock has lost 3.7% in the same time frame.


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