PALM BEACH, Florida, March 21, 2018 /PRNewswire/ —
Marketnewsupdates.com News Commentary
StreetSignals.com News Commentary: The World Health Organization estimates that contaminated food kills 420,000 people every year, 125,000 of whom are children under the age of five. One in 10 people fall sick from eating contaminated food. These are sobering statistics indeed. You’ve probably experienced a nasty case of food poisoning before yourself. It’s no wonder then that healthtech is a growing industry and that companies such as HealthSpace Data Systems Ltd. (CSE: HS) (OTC: HDSLF) (Frankfurt: 38H), Tyler Technologies, Inc. (NYSE: TYL), Cerner Corporation (NASDAQ: CERN), Athenahealth, Inc. (NASDAQ: ATHN), and Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) have all performed strongly.
Transparency Market Research estimates that the healthtech industry is a $6.8 billion market, while Frost & Sullivan forecasts it to hit almost $10 billion by 2021 with a double digit average compound annual growth rate. One of the latest innovations being brought to the industry is blockchain technology. The blockchain is an immutable record of data, which makes it ideal for recording the food supply chain. By integrating blockchain technology within the food supply chain, producers and authorities will be able to trace contaminated food to its source almost immediately.
The major industry players have already recognized this. In August 2017, a consortium of food giants including Walmart, Nestle, and Unilever announced that they were partnering with IBM to explore using blockchain technology in its food supply chain. Here’s what Frank Yiannas, vice president for food safety at Walmart had to say in a press statement.
“Blockchain technology enables a new era of end-to-end transparency in the global food system – equivalent to shining a light on food ecosystem participants that will further promote responsible actions and behaviors.”
The message is clear. Blockchain technology is so much more than just ‘crypto-mania’ and questionable ICOs. The applications of this technology could literally save lives. Another company that has recognized the potential of blockchain technology to improve supply chain tracking in various industries is HealthSpace Data Systems Ltd. (“HealthSpace”).
HealthSpace Data Systems Ltd. (CSE: HS) (OTC: HDSLF) (Frankfurt: 38H) is one of the few remaining independent health tech providers in the industry. It is a Software-as-a-Service (“SaaS”) company that focuses on cloud-based data management and analytics software as well as regulatory inspection software. In North America, it has established itself as an industry leader in regulatory inspection software for environmental health departments.
HealthSpace’s inspection software has been used in over 200,000 restaurants and over 14,000 hotels. The company runs 10 different statewide programs touching 23 different states, with clients ranging from Health Canada to the Washington State Department of Health. By adding a ‘blockchain upgrade’ to this software, Healthspace will not only be able to improve food safety for millions of people but improve the efficiency of the entire process as well. Specifically, the decentralized network that HealthSpace is developing will also enable companies to remove any inspection controller or broker from the process.
HealthSpace is incorporating blockchain technology into its services in partnership with SIMBA Chain Inc. a Blockchain-as-a-Service company and a subsidiary of ITAMCO. SIMBA Chain has already earned a contract from a Fortune 500 multinational chemical company to implement its technology for the company’s tracking and logistics.
HealthSpace will be releasing its alpha prototype in Q1 of 2018, testing it with its various industry and government partners, including companies in the food service, hospitality, and even cannabis industry. That’s because some players in the burgeoning cannabis industry have realized how blockchain technology could bring similar benefits to their industry.
One such player is 1804 Management LLC, which has a large grow space on the California–Nevada border. In August 2017, the company chose HealthSpace as its technology partner.
Bringing Blockchain-based Food Safety Technology to the $15 Billion North American Cannabis Market
As recreational cannabis becomes legalized through North America and usage spikes, there are bound to be health scares related to tainted or improperly handled cannabis. For instance, in a recent report by KNBC-TV, one marijuana testing lab found that 93% of cannabis samples in Southern California tested positive for pesticides. Further, as the market grows, increased regulations and the necessary audits and inspections will soon follow. The necessity for a fully traceable supply chain is evident.
In the case of 1804 Management LLC, HealthSpace will create a complete ‘seed to sale’ tracking management system as well as modify its existing software for use in lean manufacturing processes such as ‘Just in Time’ inventory management systems. This will ensure maximum transparency, security, and product traceability.
Cannabis, just like food, is not without risk. This is the kind solution that is necessary to address such risks in light of its fast growing market. In fact, it may even be more important for the cannabis industry, given how much opposition still exists against legalization. A serious health scare or even death as a result of contaminated cannabis would be a major setback for the entire legalization effort. Tens of billions of dollars are at stake, so this must not be allowed to happen.
In 2017 alone, there was $10 billion in legal cannabis sales in the United States, according to a recent report by Arcview Market Research. By 2021, this figure is forecast to hit $24.5 billion. Canada is also about to become a huge market when recreational use is legalized in summer 2018. Deloitte estimates a base retail value of $4.9 billion to $8.7 billion annually, with a total economic impact of over $22.6 billion.
The bottom line is that the growing giant that is the cannabis industry needs the healthtech industry. Healthtech will provide the technology that the cannabis industry needs to reduce and prevent contamination. This is great news for an industry that is growing in use from legalization.
Tyler Technologies, Inc. (NYSE: TYL)
Based in Texas, Tyler Technologies is the largest public sector-serving software company in the United States. Its product offerings are wide ranging, covering tax, education, public safety, the courts system, and data management. Its stock has always performed well, having been on a consistent uptrend since it was publicly listed in 1990. Over the past year, the stock delivered 32% returns to investors.
Cerner Corporation (NASDAQ: CERN)
This Kansas-based company focuses on health information technology solutions. Its flagship product is Cerner Millennium, a unified IT system with a single consolidated database and shared process servers. According to its 2017 fiscal report, its products are used in over 27,000 facilities worldwide. Its stock has also performed well, returning 16% to investors over the past year.
Athenahealth, Inc. (NASDAQ: ATHN)
Another American-based company, Athenahealth focuses on network-enabled services for healthcare and point-of-care mobile applications. Its solutions range from practice management, patient engagement, and revenue cycle management. Its services are currently being used by 106,000 medical providers. While its stock has been somewhat volatile, over the past year it still delivered a strong 21% return to investors.
Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX)
Allscript’s solutions for the healthcare industry focus on the areas of electronic health records, population health management, precision health management, and financial management. Its flagship product is Allscripts CareInMotion, a one stop solution covering patient engagement, data aggregation and analytics, as well as care coordination. Its stock returned 13% to investors over the past year.
Health Tech Will Soon Be An Essential Part Of The Healthcare System
The healthtech industry is only going to keep growing. This is inevitable as society becomes ever more data-driven and the population only continues to increase. The cannabis legalization wave that is sweeping across the continent will only speed up this growth.
But healthtech is also a fast changing landscape. Technology is always evolving, and companies which fail to adapt will get left behind, no matter how large they are at the moment.
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