VANCOUVER, BC, Feb. 23, 2021
/PRNewswire/ - CRH Medical Corporation ("CRH", or the "Company")
(TSX: CRH) (NYSE MKT: CRHM) announces today that it has signed a
five-year exclusive Management Services Agreement with United
Digestive ("UD"). The agreement is newly structured as a management
services agreement, whereby CRH will earn a fee for managing
UD's anesthesia service, that can naturally grow
as the UD platform realizes its expansion plans.
Additional upside may also be realized as CRH further employs its
payor contracting strategy in addition to any other opportunities
for collaboration.
The new agreement will be effective as of Nov 1, 2021 and is expected to allow the company
to retain a material portion of the EBITDA earned by the Company
under the present arrangement which will continue to be in full
force and effect until Nov 1,
2021.
"We are pleased to have reached a win-win agreement with United
Digestive," noted Dr. Tushar Ramani,
Chief Executive Officer of CRH. "CRH and our anesthesia staff look
forward to continuing to support UD's medical staff, who share our
dedication to delivering outstanding patient care."
The Company is well poised to continue its strong growth given
its organic and inorganic growth plans. Recently on
Feb 9th, 2021, the company
announced that it had closed the acquisition of Edison, NJ based gastroenterology anesthesia
practice, Oak Tree Anesthesia Associates or "Oak Tree", its
32nd acquisition and first of 2021. It is expected
that Oak Tree will contribute approximately US$1.5M in incremental revenues with similar
EBITDA margins to the rest of CRH's business.
With the acquisition of Oak Tree acquisition, the company now
provides services to 70 ambulatory surgical centers across 14
states. The Company has more than 500 prospects in its
watch-list and continues to be focused on its inorganic growth
program.
About CRH Medical Corporation:
CRH Medical Corporation is a North American company focused on
providing gastroenterologists throughout the United States with innovative services and
products for the treatment of gastrointestinal diseases. In 2014,
CRH became a full-service gastroenterology anesthesia company that
provides anesthesia services for patients undergoing endoscopic
procedures in ambulatory surgical centers. To date, CRH has
completed 32 anesthesia acquisitions, and now serves 70 ambulatory
surgical centers in 14 states. In addition, CRH owns the CRH
O'Regan System, a single-use, disposable, hemorrhoid banding
technology that is safe and highly effective in treating all grades
of hemorrhoids. CRH distributes the O'Regan System, treatment
protocols, operational and marketing expertise as a complete,
turnkey package directly to gastroenterology practices, creating
meaningful relationships with the gastroenterologists it serves.
CRH's O'Regan System is currently used in all 48 lower US
states.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information included or incorporated by
reference in this document may constitute "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
within the meaning of Canadian securities laws (collectively,
"forward-looking statements"). Forward looking statements include
statements regarding the expected benefits of the Company's
recently completed acquisition, as well as all other statements
that are not statements of historical fact. Forward-looking
statements are generally identifiable by use of the words "may,"
"will," "should," "expect," "anticipate," "estimate," "believe,"
"plan," "intend" or "project" or the negative of these words or
other variations on these words or comparable terminology.
Forward-looking statements reflect current expectations of
management regarding future events and performance as of the date
of this document and involve known and unknown risks, uncertainties
and other factors which may cause our actual results to be
materially different those expressed or implied by any
forward-looking statements. These forward-looking statements should
not be read as guarantees of future results, and there can be no
assurance that the results expressed or implied by any
forward-looking statements will be achieved. Important factors that
could cause actual results to differ materially from the results
discussed in forward-looking statements include: (i) the risk that
the Company may be unable to achieve anticipated synergies relating
to the acquisition, or that such acquisition could result in
unforeseen operating difficulties and expenditures, or require
significant management resources and significant charges; (ii) the
possibility that the Company will be unable to retain key
personnel; (iii) the risk that customers may terminate or choose
not to renew their agreements with us, that we are unable to
maintain or increase anesthesia procedure volumes or that there are
changes to payment rates or methods of third-party payors;
(iv) the risk of other disruption from the acquisition,
including potential adverse reactions or changes to business
relationships with customers, employees, suppliers or regulators,
making it more difficult to maintain business and operational
relationships; (v) risks and uncertainties relating to the pending
transaction between the Company and WELL Health Technologies Corp.,
including those relating to the parties' ability to consummate the
proposed transaction in the time period expected or at all, and the
parties' ability to achieve the anticipated benefits of such
transaction; (vi) uncertainties related to developments in the
COVID-19 pandemic and its impact on the Company's operations; and
(vii) uncertainties related to general economic, financial,
regulatory and political conditions, as well as potential changes
in law and regulatory interpretations.
Additional factors that could cause actual results to differ
materially from expectations include, without limitation, the risks
identified by the Company in its most recent Annual Report on Form
10-K, its Quarterly Reports on Form 10-Q and its Current Reports on
Form 8-K, which are available on EDGAR at www.sec.gov/edgar.shtml
or on the Company's website
at www.crhmedcorp.com The Company disclaims any
intent or obligations to update or revise publicly any
forward-looking statements whether as a result of new information,
estimates or options, future events or results or otherwise, unless
required to do so by law.
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SOURCE CRH Medical Corporation