- Company announces the re-opening of four clinics scheduled to open next month in Maine, Massachusetts, Colorado and New Jersey.
- Re-opening drives the 2021 organic growth strategy to convert existing non-insurable service clinics to primary care and multi-disciplinary practices by the end of 2021.
- There are over 12,000 existing patients currently registered to these clinics that will now receive access to complete primary care services under an insurable services model.
- The conversion of existing practices is incremental to the 6 announced acquisition transactions over the past 6 months.
- Company expects to boost revenue run rate organically by $3 million annualized over the next 12 months through these initial 4 practices.
TORONTO, Jan. 21, 2021 (GLOBE NEWSWIRE) — Skylight Health Group Inc (TSXV:SHG; OTCQX: SHGFF) (“Skylight Health” or the “Company”), is pleased to announce that it will begin in-person primary care services in 4 of its existing clinical locations in the US. These will include:
- Bangor, ME
- Yarmouth Port, MA
- Princeton, NJ
- Denver, CO
Between 2017-2019, the Company acquired over 30 clinics across 16 states that were historically focused on non-insurable patient services. As part of the Company’s transition and evolution to primary care services in the US driven by patient need, Skylight mandated that these locations servicing over 100,000 patients would be transitioned a to primary care practices. The 4 locations noted will be the first of many conversions this year. Patients are to receive a holistic and inclusive range of services including primary care, urgent care, and other sub-specialties. Providers will be credentialed with both government payors (Medicare/Medicaid) and commercial payors, thus offering the most flexibility for patients, and enhanced reimbursement opportunities for our clinics.
Prad Sekar, CEO, Skylight Health says “Our model is to focus on the prevention, not just the treatment, of acute and chronic patient conditions. It is our responsibility as the primary care provider to meet all patient needs, even those they have not anticipated. If we do a better job collectively, we can significantly reduce the costs to our healthcare system, unnecessary emergency room admissions and re-admissions, and improve overall patient health outcomes. We are proud to continue to execute against our 2021 roadmap and look forward to future announcements as we bring additional locations to market and drive our organic growth plan.”
Over the past 6 months, the Company has announced 6 clinic transactions and closed on 4 so far, expanding into 2 new markets and acquiring over 50,000 new patients. On closing of all current transactions, the Company expects to see an annual revenue run rate of $46 million, not including growth from organic enhancements and the conversion of its previously non-insurable service clinics.
Prad Sekar continues “The addition of conversion clinics significantly bolsters market share as well as revenue growth without further dilution considerations or major capital requirements. Once successful within these initial 4 locations, we expect to bring over $3 million in incremental annualized revenues to our overall contributed growth this year.”
The Company plans to begin communications to patients in the coming weeks as it prepares the opening of each of the 4 practices.
About Skylight Health Group
Skylight Health Group (TSXV:SHG; OTCQX:SHGFF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing. The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations. With a patient roster of over 150,000 patients, the Company’s operations servicing 15 states and continues to expand in services and locations both organically and by way of strategic acquisitions.
The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.
For more information, please visit www.skylighthealthgroup.com or contact:
Currency Usage, Cautionary and Forward-Looking Statements
All currency contained in this Press Release represent Canadian Dollars unless otherwise stated.
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Skylight Health’s filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements regarding the Company’s unaudited financial results and projected growth.
Although Skylight Health has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: the ability of Skylight Health to execute on its business strategy, continued revenue growth in accordance with management’s expectations, operating expenses continuing in accordance with management expectations, dependence on obtaining regulatory approvals; Skylight Health being able to find, complete and effectively integrate target acquisitions; change in laws relating to health care regulation; reliance on management; requirements for additional financing; competition; hindering market growth or other factors that may not currently be known by the Company.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Skylight Health disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Skylight Health does not assume any liability for disclosure relating to any other company mentioned herein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.