3 small cap ASX healthcare shares with enormous potential

Could these small cap ASX healthcare shares be the next Cochlear Limited (ASX:COH) and Ramsay Health Care Limited (ASX:RHC)?

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When it comes to investing in world class healthcare companies, the Australian share market is home to a number of them such as Cochlear Limited (ASX: COH)and Ramsay Health Care Limited (ASX: RHC).

While these blue chip shares certainly have a lot of growth left in them, the law of large numbers suggests they will find it difficult to deliver the explosive earnings growth of the past.

This doesn't mean they won't be great investments moving forward (I rate both highly), but it does mean investors who want explosive levels of growth will need to look at alternative options.

Fortunately, the local share market is also home to a large number of up-and-coming healthcare shares that I think investors should take a closer look at. Three to watch are as follows:

Alcidion Group Ltd (ASX: ALC)

Alcidion is a health informatics company aiming to transform healthcare with smart, intuitive technology solutions. The company has a growing portfolio of software products and services that support interoperability, allow communication and task management, and deliver clinical decision support at the point of care to improve patient outcomes. Its software is currently used in 215 hospitals, 42 healthcare organisations, and on 30,000 beds.

Medadvisor Ltd (ASX: MDR)

Medadvisor is a growing software systems developer with a focus on addressing gaps in personal medication adherence. Its app connects to pharmacy dispensing systems to automatically retrieve medication records and drive an intelligent training, information and reminder system to ensure correct and reliable medication use. In addition to this, the company is also rolling out a medicine delivery service and a telehealth solution.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap healthcare share with significant potential is Volpara. Its software leverages artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. It has been growing its market share in North America at an exceptionally strong rate. This led to the company recently reporting a 172% increase in annual recurring revenue to NZ$18 million.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd, Cochlear Ltd., and MedAdvisor. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd, Cochlear Ltd., MedAdvisor, and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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