The multi-trillion-dollar U.S. healthcare market is ripe for disruption. After all, the current system is fragmented, meaning there exists a lack of coordination that often results in an inefficient allocation of resources. “Fragmentation adversely impacts quality, cost, and outcomes. Eliminating waste from unnecessary, unsafe care is crucial for improving quality and reducing costs-and making the system financially sustainable,” says The American Journal of Managed Care (AJMC). Making matters far worse, doctors often struggle to coordinate patient care, as compared to other countries. For example, less than half of U.S. primary care doctors are receiving information from specialists regarding changes to medication or even care plans.
Those are severe issues impacting millions of Americans. However, primary care companies are helping to change that, creating a cure for the fragmented, unorganized health system millions put up with every day. In fact, some are providing a broader range of services not traditionally found under one clinic group. For example, some are able to provide services both physically and virtually at a lower cost to the patient. In addition, their primary care physician network remains at the center of each clinic’s operations. After all, the management and support of patients begins with the foundation of a family doctor who knows and understands the patients’ needs and health goals. Growth and demand are creating opportunity for Skylight Health Group Inc. (CSE:SHG)(OTCQB:CBIIF), Oak Street Health Inc. (NYSE:OSH), WELL Health Technologies Corp. (TSX:WELL)(OTC:WLYYF), 1Life Healthcare Inc. (NASDAQ:ONEM), and Jack Nathan Medical Corp. (TSXV:JNH).
Skylight Health Group Inc. (CSE:SHG)(OTCQB:CBIIF) BREAKING NEWS: Skylight Health Group Inc., one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has entered into a Letter of Intent (LOI) to purchase the assets of Healthcare Resources Management LLC which operates Perimeter Pain and Primary Clinic (“Perimeter”) in Cookeville, Tennessee. The planned acquisition of HRM expands the Company’s bricks and mortar and telemedicine services to 15 States and will add 12,000 new patients to its current roster of 120,000.
HRM has been operating Perimeter in Cookeville for over 7 years with strong patient retention. Services to patients include primary care, chronic pain management, interventional procedures, weight management, regenerative medicine and aesthetics. Services provided by Perimeter are primarily reimbursed through insurance carriers including Medicare, Medicaid and other commercial payors.
The Company expects to see continued growth in patient registrations and visits as Perimeter continues to thrive among the challenges most clinics have faced due to the recent COVID-19 pandemic. Further, the Company will work quickly to expand on the current offering of services by leveraging its current telemedicine infrastructure to provide access to patients across the state of Tennessee. Upon completion, services offered by Perimeter will apply to Skylight Health’s entire patient base. These services are immediately accretive as they allow the Company to expand complementary billable services. Patients will continue to benefit from the expansion of services in-house. The Company will benefit by expanding the per patient insurable revenue share-of-wallet by retaining these services internally.
“Perimeter represents the first of complementary non-primary care acquisitions and is in direct alignment with our strategy to expand on services offered to our existing patient base nationally,” said Prad Sekar, CEO, Skylight Health. “Adding vital services like chronic pain management, interventional procedures and other from Perimeter will benefit tens of thousands of our current patients and will be deployed nationally within the existing framework of payor contracts in each state we are organically establishing over the next year.”
HRM represents the fourth announced acquisition by the Company in the last 60 days. This acquisition supports and strengthens the 3-prong growth model which includes growth from the current infrastructure, new services and acquisitions. The Company will pay as per the agreed upon terms of the LOI, a transaction value in cash of CAD 1.03 million representing an EBITDA multiple of 2.6x. Perimeter reported revenues in 2019 of CAD 2.2 million and net income of CAD 400,000. This transaction is subject to a satisfactory due diligence period by the Company and mutual agreement to an Asset Purchase Agreement and Closing Conditions. The transaction is expected to close on or before December 31, 2020.
Other related developments from around the markets include:
Oak Street Health Inc. (NYSE:OSH), a network of value-based primary care centers for adults on Medicare, is expanding access to more older adults in North Carolina with opening of its newest center at 1000 North Miami Blvd, Suite 121 in Durham. The new center brings the number of Oak Street Health centers in North Carolina to six. “We are excited to bring access to our high-quality, value-based care to members of the Durham community with the opening of this new center,” said Tamara Jurgenson, Chief Growth Office.“We care for the most vulnerable patients, the majority having two or more chronic conditions. As our organization continues its mission to rebuild healthcare as it should be, we look forward to improving patient outcomes in North Carolina and helping older adults live their healthiest lives.”
WELL Health Technologies Corp. (TSX:WELL)(OTC:WLYYF), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to announce that via its Tia Health subsidiary, it has partnered with a leading Canadian lab company to provide eligible patients with prescriptions for COVID-19 (SARS-CoV-2) Antibody testing. “Now that a Health Canada-approved test for COVID-19 Antibodies is available, we are helping a leading national lab company uncover hidden past cases of COVID-19 by providing eligible patients with a doctor’s prescription for obtaining a highly accurate blood test that can detect the presence of COVID-19 antibodies,” said Dr. Michael Frankel, Chief Medical Officer of WELL. “When these antibodies are found, it means that there has been a historical COVID-19 infection. We believe such tests will be critical in addition to the administration of a capable vaccine to provide Canadians with the comfort needed to address the COVID-19 pandemic for at least several quarters.”
1Life Healthcare Inc. (NASDAQ:ONEM) announced financial results for the third quarter ended September 30, 2020. “We are pleased to have reached new heights in performance this quarter--with our membership surpassing half of a million members and quarterly total net revenue exceeding $100 million for the first time,” said Amir Dan Rubin, Chair & CEO of One Medical. “We are further seeing how One Medical’s human-centered and technology-powered model is delivering impacts for multiple key stakeholders, advancing our efforts to transform healthcare at scale.”
Jack Nathan Medical Corp. (TSXV:JNH), a provider of primary care medical clinics located in Walmart Supercentres under the Jack Nathan Health brand, today announced the opening of a new 3,130 sq. ft. multi-disciplinary medical clinic in Thornhill, ON. The Clinic, located in the Walmart Supercentre at 700 Center St. aligns with Walmart’s next-generation experience and has health and wellness concepts built into its design, creating a frictionless offering between the two partners. An open and warm lobby has been seamlessly integrated so that patients can flow freely from the Clinic into Walmart. Medical patients will be able to meet with staff, register to see a doctor and shop for a variety of products while they wait.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Skylight Health Group Inc. by a third party. We own ZERO shares of Skylight Health Group Inc. Please click here for full disclaimer.
Contact Information:
2818047972
[email protected]
