Oppenheimer Comments On MedAssets Agreement With Texas Purchasing Coalition

According to Oppenheimer, MedAssets MDAS announced that its agreement with the Texas Purchasing Coalition has been amended to include Hendrick Health System. Oppenheimer said that normally, it would not comment on the inclusion of an additional hospital to a GPO contract. “However, given the high level of skepticism regarding the company achieving its FY11 guidance, we believe the contract expansion holds greater significance. Of even greater importance, in our opinion, is the level of savings MedAssets has achieved for TPC members. We believe there is a high likelihood MedAssets will achieve the guarantee threshold this year, allowing the company to recognize the deferred revenue associated with the TPC contract.” MedAssets closed on Friday at $14.89.