The multi-trillion-dollar U.S. healthcare market is ripe for disruption. Right now, 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. That’s where primary care companies are coming into play. It’s 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. Acquiring Three Primary Practices in the United States
Skylight Health Group Inc (TSXV:SHG; OTCQX: SHGFF), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has entered into letter of intent to acquire 3 independent Primary Care practices in the United States, immediately adding over C$10 million in revenue and positive EBITDA. For confidentiality reasons, the names and locations of the groups will remain undisclosed until the closing of the Transactions, which are anticipated to be complete before the end of April 2021.
- Skylight Health to acquire 3 independent US primary care groups across multiple states.
- 2020 unaudited revenue of over $10 million and $1.6 million EBITDA.
- Immediately accretive deals strengthen organizational team, add to provider and patient count, develop strengthened model for short-term and long-term organic growth.
- All M&A transactions made by the Company have a target closing price of between 4 – 5 times EBITDA which is consistent with its recent 5 transactions.
- Skylight Health forecasted annual revenue run rate now over $56 million after closing of all announced transactions.
- Company expects to retain operating and management teams including providers and clinical staff.
“These types of transactions are an effective way to diligently increase market penetration and will continue to be one of the core strategies to augment our growth,” said Prad Sekar, Co-Founder and CEO of Skylight Health. “We continue to build our pipeline of qualified acquisition targets and will be extremely disciplined about the acquisitions we pursue and focus on these where we can achieve favourable pricing and optimal accretion.”
The Company has spent the last 2 months strengthening its executive team and is focused on the implementation of a corporate strategy that includes technology, organic growth and strategic acquisitions to continue to improve upon its financial results. All potential acquisitions will strategically focus on geographic locations, patient volumes, as well as the ability to drive operating efficiencies and maximize earnings accretion. Skylight expects to bring value-based capabilities to independent practices, creating over 500% organic growth through conversion from fee-for-service models to pay-per-value models with both government and commercial payors.
Closing of the aforementioned acquisitions are subject to final due diligence, negotiation and execution of definitive purchase agreements and all necessary approvals including the Board and regulatory approval with an anticipated closing date in April 2021.
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.
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