Thanks to the pandemic, we’re seeing a sizable surge in mental and behavioral health care demand, according to the National Council for Behavioral Health. In fact, according to a recent survey from the group, 52% of behavioral health organizations are seeing an increase in demand. At the same time, capacity is decreasing, with 54% of mental health programs closing. Up to 65% of such programs have been forced to cancel, or turn away patients. That’s creating a massive problem for millions still in desperate need for mental health care, while driving a good deal of interest in virtual mental health care.
In addition, “According to the National Institute of Mental Health, in 2018 one in five adults in U.S. had a mental illness. There has been a significant rise in telemental health visits over the past decade in the developed countries such as U.S., U.K., Germany, and Spain and the trend is expected to continue during the forecast period, thereby contributing to the adoption of virtual mental health consultation by hospitals and healthcare settings.” That’s creating big opportunity for companies such as CloudMD Software & Services Inc. (TSXV:DOC) (OTCQB:DOCRF), Teladoc Health Inc. (NYSE:TDOC), American Well Corp. (NASDAQ:AMWL), Zoom Video Communications Inc. (NASDAQ:ZM), and 1Life Healthcare Inc. (NASDAQ:ONEM).
CloudMD Software & Services Inc. (TSXV:DOC)(OTCQB:DOCRF) BREAKING NEWS: CloudMD Software & Services Inc., a telehealth company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has closed the previously announced acquisition of Snapclarity Inc.
Snapclarity is a pioneer, on-demand, digital platform that provides an assessment for mental health disorders which includes a personalized care plan, access to online resources, a clinical health care team and the ability to match to the right therapists. The platform utilized by employers, individuals, therapists and insurers offers a continuity of care program that effectively blends the supported intervention with technology, artificial intelligence and human touch. This is accomplished through a suite of proprietary digital tools that are designed by clinicians and grounded in evidence-based practices that are proven to positively impact outcomes. Individuals, employees and patients feel empowered, motivated and supported throughout their entire treatment journey.
The COVID-19 pandemic’s global disruption has been a catalyst for an increase in mental health illnesses and has created a prevalent need for options to triage and offer continuity of care virtually. According to the Journal of the American Medical Association (JAMA, Oct 12, 2020),“This devastating pandemic has affected nearly every aspect of daily life. While nations struggle to manage the initial waves of the death and disruption associated with the pandemic, accumulating evidence indicates another “second wave” is building: rising rates of mental health and substance use disorders. This imminent mental health surge will bring further challenges for individuals, families, and communities including increased deaths from suicide and drug overdoses.”
This acquisition makes CloudMD one of the only telemedicine companies that provides an integrated digital platform that combines top-tier primary care with clinically-proven mental health support. The combination of these two facets of healthcare addresses an emergent market demand from enterprise clients, insurers, governments and other payors. Technology, human touch and artificial intelligence enables the ability to provide the highest quality of care.
Snapclarity will also be integrated into CloudMD On Demand, an online telemedicine service that aims to provide turnkey and readily accessible virtual healthcare options to enterprise level partners. Individuals, patients and employees are looking for a comprehensive approach to physical and mental healthcare. It is well documented that often times there is direct relationship between mental and physical health and having one, centralized, whole person care platform is both important and effective.
Currently, companies have siloed health programs that are costly and ineffective in providing a holistic care plan focused on ease of access, individual needs and recovery. This acquisition dramatically changes the landscape where employers can now offer one solution that addresses the comprehensive health needs of their workforce and eliminates the need of multiple vendors. Now, individuals have access to appropriate benefit programs that address all their healthcare needs. Healthcare teams consult with individuals to determine the appropriate whole person treatment plan to accelerate recovery while lowering group benefit costs. The employee experience is elevated with a digital door experience that results in the right care for the right issue at the right cost.
Terms of Acquisition
CloudMD has acquired 100% of Snapclarity by way of a three-cornered amalgamation pursuant to the provisions of the Canada Business Corporations Act. Total consideration payable by the Company in connection with the acquisition is $3.35M, subject to certain holdbacks, payable as up to C$975,000 in cash and up to C$2,375,000 in shares of the Company, to be issued at a deemed price of $0.70 per share. All shares issued pursuant to the acquisition are subject to a two (2) year release. Additionally, subject to future TSX-V approval and the achievement of certain performance conditions in 2021 and 2022, Snapclarity may earn up to an additional $3.65M in equity-based consideration.
Other related developments from around the markets include:
Teladoc Health Inc. (NYSE:TDOC), the global leader in virtual care, is providing free, 24/7 general medical telehealth visits to residents, first responders and others directly impacted by Hurricane Sally and the devastating floods that have affected the area as a result. Individuals from the hardest hit areas in Alabama and Florida, as well as those located in Georgia and the Carolinas who are now being displaced can seek treatment from a board-certified, state licensed physician for any non-emergency illness by calling Teladoc directly at 855-225-5032. “Especially during this hurricane season, as communities are already navigating an active pandemic, we want to make sure that those who are faced with the devastation of natural disasters are keeping their health front and center and know how to get care,” said Dr. Lewis Levy, FACP, chief medical officer, Teladoc Health. “Virtual care is a proven solution that supports community health during these times, as residents from evacuated areas seek to stay healthy when healthcare facilities and providers may also possibly be affected and unable to meet all care needs.”
American Well Corp. (NASDAQ:AMWL), a national telehealth leader, released the results of its annual Physician and Consumer Survey. The results show physicians and consumers expect to use telehealth more often following COVID-19 than they did before the pandemic. Telehealth usage is up considerably in 2020, with 22% of consumers and 80% of physicians having a virtual visit this year, up from 8% and 22%, respectively, in 2019. This adoption is largely driven by a shift to scheduled visits across all specialties, whereas prior to COVID-19 the majority of visits were for on-demand urgent care. “We’ve long believed that patients want to see, and gain the most value from seeing, their own doctors versus any doctor when it comes to telehealth. The trends underscored by this survey indicate that indeed providers and consumers alike want to use telehealth for primary care, chronic care management, and specialty care of all kinds. This shift suggests the beginning of a rapid transition to a hybrid care model that combines both virtual and physical care settings. This is a welcome sea change that will enhance the overall care experience,” said Ido Schoenberg, Chairman and Co-CEO, Amwell. “Furthermore, this survey reinforces the staying power of telehealth post-pandemic and calls upon the broader healthcare ecosystem to cement and sustain the hybrid healthcare model.”
Zoom Video Communications Inc. (NASDAQ:ZM) will hold a Financial Analyst Meeting on October 14, 2020 during its premier customer event, Zoomtopia. The event will be hosted by members of the executive team and will discuss Zoom’s business strategy, opportunities, and initiatives. A live Zoom Video Webinar of the event can be accessed at 11:00 am PT / 2:00 pm ET through Zoom’s investor relations website.
1Life Healthcare Inc. (NASDAQ:ONEM) and Houston Methodist will partner to deliver seamless coordinated care in the Houston metropolitan area. The partnership will provide Houston area residents access to One Medical’s modernized primary care model, which will support seamless access to Houston Methodist’s network of highly ranked specialists, ambulatory facilities and hospitals. One Medical’s membership-based model provides on-demand, 24/7 access to telehealth services, paired with convenient in-person care. In addition to a direct-to-consumer membership, more than 7,000 employers have sponsored memberships on behalf of their workforce. Together, the two organizations will aim to achieve greater clinical integration and deliver exceptional value to consumers and employers.
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