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Nobilis Moves Forward with New President and New Canaccord Coverage

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Under the guidance of newly appointed president Kenneth Efird, Nobilis Health Corp. plans to continue to roll out new products and optimize its marketing strategy.

Nobilis locations

Kenneth Efird will oversee Nobilis Health Corp.'s (HLTH:NYSE; NHC:TSX) operating units across the nation, focusing on execution of the company's strategic plan, according to a press release issued on July 11. Prior to stepping in as president, Efird had served as chief operating officer and chief business development officer at Nobilis, which operates surgical hospitals, physician practices and ambulatory surgical centers in Texas and Phoenix.

Since coming on board in 2005, Efird has overseen various aspects of the company's business, including clinical operations, sales and "the rollout of a new marketing strategy, which includes the integration of Athas technologies and the expansion of Nobilis' portfolio of brands," according to the company.

Neil Maruoka, an analyst with Canaccord Genuity who initiated coverage on Nobilis on July 13, pointed out that Athas, the company's "marketing arm," is "a key differentiator and organic growth engine. . .Through its targeted marketing, we believe that Athas has the ability to drive higher case volumes and higher revenue per procedure through Nobilis' facilities."

Canaccord also views Nobilis' surgical facilities "to be steady businesses, providing strong cash generation to underpin our valuation." Maruoka has a rated Nobilis a Buy with a price target of $4.50 per share.

Nobilis (then Northstar Health) acquired Athas Health, a Dallas-based marketing firm, in late 2014. The Athas technology, according to analyst William Sutherland of Emerging Growth Equities, provides Nobilis with an "end-to-end concierge model that begins with direct-to-consumer marketing through post-surgical support."

Back in May, analyst Dana Hambly of Stephens noted that Nobilis' recently launched subsidiary Concertis, a platform that "negotiates bundled payments for surgical procedures with payers covering pre- and post-operative services. . .should start driving case growth in [H2], improving on already solid organic growth."

According to Nobilis, Efird has "played a significant role in the integration of acquisitions," which included three new facilities in 2015 and the launch of Concertis.

"Throughout the past several years of tremendous growth, Kenneth has built an impressive track record of operational and strategic accomplishments," said company CEO Harry Fleming in the press release.

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1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
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