Skylight Health Partners with Major National Direct Contracting Entity for Value-Based Care Participation
October 07 2021 - 7:00AM
Skylight Health Group Inc. (NASDAQ: SLHG; TSXV:SLHG) (“Skylight
Health”, “Skylight” or the “Company”), a multi-state primary care
group in the United States, today announced the execution of a
Participation Provider Contract with a leading national healthcare
organization who is a recipient of a Direct Contracting Entity
(“DCE”) license, with Skylight Health’s participation beginning in
2022. The Agreement to join the DCE is a major upgrade from the
previously announced Accountable Care Organization (ACO) and is
expected to result in improved care and benefits for traditional
Medicare patients.
- The DCE contracts
directly with the Centers for Medicare & Medicaid Services
(“CMS”) and provides multiple enhanced pathways for risk-sharing
arrangements;
- Skylight will begin
participation in January 2022 and expects to move from a
single-sided risk arrangement with a goal of shifting to full
risk;
- Skylight will
receive the additional benefit of capitation in addition to the
Fee-for-Service and shared savings the Company would have received
via the previously announced ACO; and
- In addition to
Skylight’s current traditional Medicare patients, those qualifying
patients that Skylight acquires through acquisition and de novo
growth will be eligible for participation in the DCE.
The Direct Contracting Model (the “Model”) was designed by the
CMS Innovation Center (CMMI) as the next evolution in risk sharing
arrangements to produce value and high-quality healthcare. The
Model is a set of two voluntary risk-sharing options aimed at
reducing expenditures and preserving or enhancing quality of care
for Medicare FFS beneficiaries. Provider groups in the Model assume
higher levels of financial risk and expected improved financial
reward than are available under the MSSP.
The DCE entity that Skylight will be partnering with brings
several years of value-based care programs managing over 200,000
value based patient lives annually. By partnering with a National
entity, Skylight can expect to receive infrastructure and
capability support to accelerate its shift to risk. The name of the
DCE entity will remain confidential as per the terms of its
agreement with CMS prior to the participation year.
“This is a significant move forward for all of us here at
Skylight,” said Prad Sekar, CEO at Skylight. “Our ACO has enabled
us to chart a path forward where we will now see ourselves working
in the latest CMS initiative for value-based care with a strong
partner with decades of experience in various value models. Through
the DCE, our patients will benefit from improved services and
quality of care. With the infrastructure that our partner brings,
we can also leverage the robust resources of a Fortune 50 National
healthcare enterprise. We will continue to maintain our ACO as we
look forward to future commercial contracts.”
ABOUT SKYLIGHT HEALTH GROUP INC.
Skylight Health Group (NASDAQ:SLHG; TSXV:SLHG) 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.
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:
Investor Relations:
Canadian Investors
Jackie
Kelly investors@skylighthealthgroup.com 416-301-2949
U.S. Investors
John EvansJohn.evans@skylighthealthgroup.com415-309-0230
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 and United
States 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.
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.
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