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CINCINNATI, Jan. 22, 2018 (GLOBE NEWSWIRE) -- Patient Home Monitoring Corp. (the “Company”) (TSXV:PHM), a healthcare services company with operations in the U.S., today announced the expansion of its telemedicine pilot program and provided an update on the business operations after the completed corporate spin-off.
The Company started a pilot program last year, where select locations began to use a telemedicine platform to remotely train new patients on how to utilize their new medical equipment. The customary process in the industry is to deliver and train patients on their new equipment in their home. This process has inherent transportation time inefficiencies.
In its pilot program, therapists began utilizing a telemedicine platform to remotely train patients on how to use their new medical equipment with the ability to schedule more trainings per day than possible under the traditional business model. With this new approach, the Company can streamline a portion of its distribution process, see utilization efficiencies with its therapists, and create an opportunity for easy continued patient interaction. The pilot program has resulted in set-ups per rep significantly increasing, with some reps exceeding 100% increases in patient set-ups per week.
“We have been very pleased with the initial results of our pilot program,” said CEO and Chairman Greg Crawford. “We plan on rolling out this initiative to all of our locations over the next two quarters as a way of continuing to improve our margins. We service a tremendous number of patients per year, and provide hundreds of thousands of deliveries and set-ups to patients annually. Last year, we serviced more than 14,000 patients who would have been eligible for this program. This is one way that we can utilize technology to reduce our distribution costs, and we continue to work toward implementing other identified technology solutions.”
Highlights Post-Spinoff:
- Currently the Company has an annual revenue run-rate in excess of $75M after the corporate spin-off and maintains strong levels of receivables and inventory assets.
- The Company had more than 235,000 equipment deliveries or set-ups in 2017, averaging just under 20,000 per month servicing more than 71,000 unique patients.
- Respiratory resupply orders increased more than 50% from 2016 to 2017 to just under 32,000 shipments, with a significant amount of growth in the last two quarters of the year.
- Currently the Company has strong current asset levels, exceeding $20M, for securing debt financing for strategic opportunities as needed.
- Currently the Company has $12M outstanding in long-term debt, none of which is senior secured.
The 2017 full year financials ending September 30, 2017 will be released on SEDAR at www.sedar.com on or before January 29, 2018.
There are more than 6,000 independent providers in the United States in the in-home monitoring disease management industry in which the Company competes. Given the highly fragmented marketplace, and the Company’s existing national presence, management believes they can more adeptly identify both organic and inorganic tuck-in opportunities in strategic markets to quickly increase revenue and profits.
Operational Platform:
- The Company has successfully centralized its respiratory resupply program based out of Ohio, which can service all of its current and future planned locations. The respiratory resupply service has gross margins exceeding 50%, and with a centralized model the Company can more successfully capture resupply opportunities for all locations.
- The Company has successfully integrated its business divisions, and continues to improve its standardized approach to regional locational management and service offerings, including examining the proper product mix to maximize profit given regional demand. As a result, the Company has established a successful platform from which to continue expansion and future development.
- The Company has physical operations in 13 states across the East Coast and Midwest, employs more than 375 people to provide its services, and has a network of more than 13,000 referring physicians across the United States. The existing national presence allows the Company to be more targeted in its growth strategy, identifying attractive markets for expansion.
Over the last several quarters, the Company has successfully integrated its various locations and centralized numerous processes and back-office functions. As a result, the Company can more efficiently and easily expand into new markets with a standardized approach.
“We have spent a significant amount of time over the last several quarters building the Company into a successful growth platform,” said CEO and Chairman Greg Crawford. “I’m happy to say that we have successfully integrated the business divisions into a cohesive successful organization. We have successfully created the necessary processes, including building out our respiratory resupply program which has already increased revenue and profits across our locations, to be able to more quickly integrate new opportunities. With the backbone we need for aggressive expansion in place, I expect we can more quickly and efficiently take advantage of opportunities we’ve identified in various markets, including highly strategic acquisitions. I’m excited about the upcoming year and plan on providing the market a more robust update on our M&A plans shortly.”
ABOUT PATIENT HOME MONITORING CORP.
The Company provides in-home monitoring and disease management services for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility and other chronic health conditions. The initial service line includes providing in-home monitoring equipment, supplies and services to patients in the U.S. who take prescription blood thinners, such as Coumadin® (warfarin).
The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services and making life easier for the patient.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, including: the Company identifying both organic and inorganic tuck-in opportunities in strategic markets to quickly increase revenue and profits; future planned markets, locations, expansion and development; the Company more quickly and efficiently taking advantage of opportunities in various markets, including highly strategic acquisitions; and expanding its offerings; are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation: the Company successfully identifying and negotiating definitive documentation with acquisition partners and receiving the necessary regulatory, director and shareholder approvals; and the Company having the capital necessary for acquisitions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange, and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory; legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
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.
For further information please visit our website at www.phmcompanies.com, or contact:
Allan Wallander
Chief Financial Officer
Patient Home Monitoring Corp.
859-300-6455
investorinfo@myphm.com