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HealthStream Expands its Total Addressable Market, Targeting 1,000+ Nursing Schools & 1,000,000+ Nursing Students

By: via Business Wire

HealthStream (Nasdaq: HSTM), a leading healthcare technology platform for workforce solutions, announced today the expansion of its market opportunity to include the nation’s approximately 1,000,000 nursing students of all levels as well as the approximately 1,000 nursing schools, along with a multitude of nursing certification and nursing associate degree programs.

The addition of nursing students has accelerated in HealthStream’s network with the wide-spread adoption of its application, myClinicalExchange. This unique application, which was integrated with the hStream Platform in April 2023, is purchased directly by students and by their academic organization on behalf of students at an average of approximately $30 per user per year to manage students’ onboarding, rotations, and internships—and its adoption continues to grow. At its current annual growth rate of approximately 27 percent, myClinicalExchange is expected to generate 2023 revenue in excess of $4.0 million. For the first nine months of this year alone, the administration of over 160,000 clinical rotations at 600+ healthcare organizations using myClinicalExchange has been completed.

When a student uses myClinicalExchange, they are instructed to sign up for a free hStream student account and establish their unique hStream ID that remains with them throughout their professional career. This has resulted in over 50,000 new individual hStream student accounts (note: free student accounts are not counted in the Company’s overall reported hStream subscription metric) being setup over the last eight months. Training, and other professional certifications that students earn through HealthStream are then available to seamlessly transition with them as they take the critical step of joining the healthcare workforce. This generates new efficiencies for both the student and the healthcare organization that hires them. From HealthStream’s perspective, having these nursing students in the HealthStream network with a unique hStream ID also opens the door via e-commerce for their optional purchases that will enhance both their capabilities and job prospects.

HealthStream’s market expansion also includes outreach directly to nursing schools, who may opt to purchase education bundles at an enterprise-level for their student nurses. For example, in the third quarter of 2023, one of the largest nursing schools in the U.S. completed an enterprise purchase of the American Red Cross Resuscitation Suite from HealthStream. Following their examination of marketplace options, they signed a four-year agreement for their nursing students. HealthStream has subsequently launched a marketing initiative to offer various education bundles to other top nursing schools in the country as well.

Approximately 320,000 registered nursing degrees are awarded annually, along with approximately 84,000 practical nursing (LPNs) and nursing assistants (CNAs) associate degrees and certifications, respectively. Across these disciplines (i.e. RNs, LPNs, and CNAs), each of the nursing programs differs in the number of years of education/training, examinations/certifications, and the number and types of clinical rotations required—as well as individual state requirements. Collectively, there are approximately 1,000,000 active nursing students in the U.S. at any given time.

“HealthStream’s passion has always been to support healthcare professionals in delivering outstanding patient care—and now we’re excited to start on that journey with nursing students before they even start their first job,” said Robert A. Frist, Jr., Chief Executive Officer, HealthStream. “We’d love to have all one million nursing students in our network to give them a head start in launching brilliant careers. Nursing students, as well as their future employers, all benefit from HealthStream’s decision to expand its network in this new market, which enlarges our overall total addressable market from its prior 11.2 million healthcare professionals to 12.2 million.”

About HealthStream

HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information, visit http://www.healthstream.com or call 800-521-0574.

This press release includes certain forward-looking statements (statements other than solely with respect to historical fact) that involve risks and uncertainties regarding HealthStream. These statements are based upon management’s beliefs, as well as assumptions made by and data currently available to management. This information has been provided in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. HealthStream cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements, including as the result of risks referenced in HealthStream’s Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 28, 2023, and in HealthStream’s other filings with the Securities and Exchange Commission from time to time. HealthStream undertakes no obligation to update or revise any such forward-looking statements.

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