As AI use in healthcare rises, Waystar is riding the wave

Core Viewpoint - The healthcare industry is experiencing significant advancements due to AI, with Waystar identified as a top investment opportunity for 2026 due to its strategic position in high-growth software and addressing administrative inefficiencies [1] Group 1: Company Performance and Strategy - Waystar's stock has declined by 20% over the past year, but analysts believe its growth potential is undervalued [1] - The company faced challenges post its $1.25 billion acquisition of Iodine software in late 2025, but is now seeing operational integration [2] - Waystar has maintained an aggressive consolidation strategy, executing over 10 acquisitions since its formation in 2017 and processing over 7.5 billion transactions annually [4] Group 2: Market Dynamics and Opportunities - Hospitals are seeking new revenue cycle vendors due to the cybersecurity breach at Change Healthcare, creating opportunities for differentiated players like Waystar [3] - The rapid growth of AI is prompting hospitals to adapt their platforms, further benefiting companies like Waystar [3] - Waystar's "AltitudeAI" tool addresses the $20 billion denial problem in the industry, significantly speeding up denial appeals processing from 38 hours to just 2 hours [6] Group 3: Analyst Insights and Projections - Analysts project that Waystar's roll-up strategy could unlock 400 to 500 basis points in margin upside as it integrates AI and scales [4] - The shift towards an "autonomous revenue cycle" driven by AI is expected to reshape market dynamics, with Waystar positioned as a key beneficiary [5] - Other notable players in the market include Phreesia and Health Catalyst, although they operate on different scales and specialties [6]