EXCLUSIVE: How Definitive Healthcare Is Impacting $4-Trillion Industry

Definitive Healthcare Corp DH priced its IPO at $27 per share. On Sept. 15, the company made its public debut and the stock opened for trading at $37.50.

Going public enables the company to innovate more quickly and accelerate the impact of its business in the growing health care industry, Definitive Healthcare founder and CEO Jason Krantz said recently on Benzinga's trade idea show "Power Hour."

Health care is a $4-trillion market, representing about 18% of U.S. GDP, Krantz said.

Definitive Healthcare's Strategy: Health care is unique in that it's complex, the CEO said, adding that it can be difficult to understand, sell and compete.

"What we do is we create data and intelligence in a platform to help our clients understand, navigate and sell into this very large end market," he said. 

Definitive Healthcare aims to transform data, analytics and expertise into health care commercial intelligence.

Health care has a lot of tailwinds including a growing market, changing regulations and a shift to value-based care, Krantz said. 

"We provide analytics that help our clients understand how these changes impact their business, what to do about it and how to make sure that they can be successful in spite of these changes."

The analytics that Definitive Healthcare provides to its clients helps them understand the size of the markets they can compete in and health care providers to target, he said. 

Definitive Healthcare tracks "every single provider across the entire United States" in order to understand how they are linked together and the analytics of their technology infrastructures, Krantz said.

Definitive During COVID-19: During the COVID-19 pandemic, Definitive Healthcare has partnered with the federal government, as well as health systems across the country to create a "COVID-19 capacity predictor," the CEO told Benzinga. 

Definitive Healthcare data scientists modeled the potential number of COVID-19 cases versus the number of ICU beds and ventilators on a county-by-county basis.

"This intelligence was incredibly helpful for the industry as they wanted to figure out where there was going to be a shortage of beds," Krantz said.

Becoming a public company enables Definitive Healthcare to innovate faster and help more clients overall, he said.

"We have a unique combination of really high growth, really high profitability and a tremendous amount of visibility into the future," Krantz said, adding that those three things in combination have positioned the company for success in the public markets. 

See the full interview here: 

DH Price Action: Definitive Healthcare traded up to the $50 range following its IPO before trending lower this week.

The stock was trading 1.49% higher Wednesday at $44.15. 

Photo: Chokniti Khongchum from Pixabay.