HealthLynked
Closes
Acquisition of Cura Health Management, LLC and ACO Health
Partners
Naples,
FL
-- May
20,
2020
-- InvestorsHub NewsWire -- HealthLynked
Corp (HLYK),
a
global
healthcare network
focused on care management of its members and a provider of
healthcare technologies that connect doctors, patients and medical
data,
today
announced
that it closed
its acquisition of
Cura Health Management,
LLC ("CHM")
and its
wholly owned subsidiary
ACO Health Partners, LLC
("AHP")
on
May 18, 2020.
"As
we expand our global
network
and focus on improving care and
reducing costs through
our technologies and
related services,
it
was a natural fit to acquire CHM
and AHP. We
believe our ACO
division
will bring significant value to our
patients
and
physician members around
the globe,"
said
Michael Dent, M.D., HealthLynked's Chairman and
CEO.
"Closing
the acquisition demonstrates HealthLynked's skill
in
executing
its M&A strategy even
during the COVID-19 pandemic."
Unaudited Financials. CHM's
unaudited consolidated revenue for 2019 and 2018 were $2,075,607
and $2,466,843 respectively. CHM's unaudited
consolidated adjusted
net
income for
the same periods was
$667,671
and $337,001,
respectively.
Anticipated unaudited
consolidated CHM
net
income for
the next twelve months is projected to be approximately
$437,500. Unaudited assets
of
CHM as
of December
31, 2019 were $661,069. We anticipate having the audit completed in
the next 72
days.
Amendment to the Agreement. The
acquisition cost of $1.75 million is
a
combination of cash, HealthLynked common stock, and a four-year
performance-based earnout. HLYK
and CHM mutually agreed to amend the definitive agreement at
closing to defer
a portion of the initial
payment of cash and stock, an additional payment of cash and stock
in September 2020 when the CMS final report of shared savings is
received, and the remaining amount in a 4-year earnout. The total
consideration of $1.75M did not change. Shared savings in 2019 and
2018 were $2.3M and $1.9M respectively.
George
O'Leary, Chief Financial Officer of HealthLynked, stated,
"CHM
and HLYK agreed
that with the uncertainty around COVID19 and the desire to get
started working together now, it made more sense to align our
interests by
delaying
a
portion of
the upfront acquisition
consideration
until
September,
when
there will be move visibility into the new
normal of the ACO
marketplace." He continued, "We are very excited to bring
the
expertise of the
Cura Team into
the HealthLynked
family.
Scott Calhoun, our Corporate Controller, will be overseeing the
audit and the transition into HealthLynked's
operating structure."
About HealthLynked Corporation
HLYK
HealthLynked Corp.
provides a solution for both patient members and providers to
improve healthcare through the efficient exchange of medical
information. The HealthLynked Network is a cloud-based platform
that allows members to connect with their healthcare providers and
take more control of their healthcare. Members enter their medical
information, including medications, allergies, past surgeries and
personal health records in one convenient online and secure
location, free of charge. Participating healthcare providers can
connect with their current and future patients through the system.
Benefits to in-network providers include the ability to utilize the
HealthLynked patent pending patient access hub "PAH" for patient
analytics. Other benefits for preferred providers include HLYK
marketing tools to connect with their active and inactive patients
to improve patient retention, access more accurate and current
patient information, provide more efficient online scheduling and
to fill last minute cancelations using our "real time appointment
scheduling" all within our mobile application. Preferred providers
pay a monthly fee to access these HealthLynked services. For
additional information about HealthLynked Corp. visit
www.healthlynked.com and connect with HealthLynked on Twitter,
Facebook, and LinkedIn.
About
Cura Health Management CHM
CHM
is a healthcare enablement company that empowers local market
provider entrepreneurs to own and operate their own Value Service
Organizations in a franchise like model that extends their reach
and capabilities to maximize revenue, deliver quality care and
improve patient outcomes. CHM's
innovative resources and expert solutions are administered as an
extension of providers' current in-practice resources, expanding
care coordination and care management services and value-based
analytics. These solutions support financial success within both
traditional payment models and expansion to new services, allowing
partners to succeed within current and ever emerging value-based
payment models.
About ACO Health Partners
AHP
ACO Health Partners is an Accountable Care Organization (ACO),
based out of Jacksonville but with providers all over the country,
participating in the Medicare Shared Savings Program.
AHP
was formed to benefit the patients
(Medicare Fee-for-Service Beneficiaries),
providers
and the communities
it serves.
AHP
is built on a model of coordinated care to ensure that patients,
especially the chronically ill and the elderly, receive the right
care at the right time, avoiding unnecessary duplication of
services and prevention of medical errors.
Forward
Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Our actual
results, including as a result of any acquisitions,
performance or achievements may differ materially from those
expressed or implied by these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of
words such as "may," "could," "expect," "intend," "plan," "seek,"
"anticipate," "believe," "estimate," "predict," "potential,"
"continue," "likely," "will," "would" and variations of these terms
and similar expressions, or the negative of these terms or similar
expressions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
our management, and us are inherently uncertain. We caution you not
to place undue reliance on any forward-looking statements, which
are made as of the date of this press release. We undertake no
obligation to update publicly any of these forward-looking
statements to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward looking statements, except to the extent required
by applicable laws. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements. Certain risks and uncertainties applicable to our
operations and us are described in the "Risk Factors" section of
our most recent Annual Report on Form 10-K and in other filings we
have made with the U.S. Securities and Exchange Commission. These
reports are
publicly
available at www.sec.gov.
Contacts:
George
O'Leary
Chief
Financial Officer
goleary@healthlynked.com
(800)
928-7144, ext. 99
Investor
Relations Contacts:
Stephanie
Prince
PCG
Advisory Group
sprince@pcgadvisory.com
646-762-4518
Jim
Hock
Hanover
International Inc.
jh@hanoverintlinc.com
760-564-7400