Those readers who are following our Streamline Health Solutions (STRM) recommendation, may find this recent recent Bloomberg article of interest.

Bloomberg reports that tech investors and entrepreneurs see a gold rush akin to the social media boom in the Electronic Medical Records (EMR) industry. Interestingly, many in the industry see major consolidation as a raft of companies enter the EMR field. “Industry consolidation is real, and it’s happening now,” says Allscripts Chief Executive Officer Glen Tullman. That has companies scrambling to lock in customers early. “Because the switching costs are so high,” those with the biggest market share have the best shot at surviving, says Sean Wieland, a technology analyst at Piper Jaffray.

At Envoy Global Research, we still believe that Streamline Health (STRM) represents a very interesting opportunity for those looking for small cap investments in the healthcare information technology (HIT) market. Considering the company’s current revenue base as compared to the enormous potential of EMR in the healthcare information technology market, we think that STRM has very significant upside potential over the next 3 to 5 years. The company can essentially be looked at as a venture capital type of investment in the public market.

For those who are unfamiliar with Streamline Health (STRM), the company’s core technology is a secure document management repository called accessANYwareTM that collects, indexes, and intelligently routes unstructured, document-based medical and financial data throughout the enterprise. Streamline Health’s solutions assist hospitals in meeting the requirements of “meaningful use” to become eligible for significant incentive payments as outlined in the HITECH act (a provision of American Recovery and Reinvestment Act of 2009), and they are an integral part of an enterprise-wide Electronic Health Record (EHR).

Under the guidance of a recently appointed new CEO with an excellent track record, Streamline Health, is currently undergoing significant transformations that may position the company for large growth in the next few years. Notably, Streamline is very focused on offering its HIT solutions on a Software as a Service (SaaS) basis. The company’s recent quarterly conference call provides an excellent overview of the changes at the company and the opportunities over the next few years.

Disclosure: Affiliates of Envoy Global Research, and its principals, own shares in STRM. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.