HealthLynked
Signs
Definitive
Agreement
to Acquire
Cura
Health Management, LLC,
and
ACO Health Partners, LLC Adding
Significant
Revenue
and
Profitability from its
Newly
Formed Accountable Care Organization Division
Naples,
FL --
February 11, 2020 -- InvestorsHub NewsWire
-- HealthLynked
Corp (HLYK),
a
nationwide 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 has entered into a definitive agreement to acquire
Cura Health Management,
LLC ("CHM")
and its
wholly owned subsidiary
ACO Health Partners, LLC
("AHP").
The
acquisition cost of $1.75 million was a combination
of cash, HealthLynked
common
stock, and a four-year performance-based
earnout. This structure vests the two founders, Nicole Bradberry
and Marsha Boggess,
in the
success of both
the
company's
newly
formed Accountable
Care Organization ("ACO") Division
and
HealthLynked at large. The
closing is targeted for the
beginning of April 2020.
According
to ResearchandMarkets.com,
the
Global
Healthcare
Data Analytics market is expected to grow from $19.6
billion
in 2018 to $47.7
billion
in 2024, a 16% compounded
annual
growth
rate
(CAGR).
As
opposed to Google's
effort to gain
access to millions of patient records from
Ascension Medical Group without
their patients'
knowledge
under "Project Nightingale,"
HealthLynked puts patients front and center in obtaining and
sharing their
medical
records,
called
"personal health records,"
for themselves and their families. HealthLynked is building
consumer-centric
technologies that support portability as well as search and share
operations for patients. By starting its ACO
Division
with
this acquisition, HealthLynked is able
to acquire large numbers of patients due to the aggregation nature
of ACOs as well as provide an underlying structure for clinical
integration and data analytics that enables their
success.
"The
acquisitions
of
CHM
and AHP expand
HealthLynked
into our newly formed ACO
Division
and
will
significantly
add to our profitability. CHM
provides service contracts to ACOs around the country and AHP is a
Jacksonville,
Florida
based ACO with
75 practitioners who
use
technology,
care coordination, and care management to
reduce
healthcare costs and improve health outcomes for its Medicare
patients,"
said
Michael Dent M.D., HealthLynked's Chairman and
CEO.
"As
we
continue to expand our network and
focus on improving care through our technologies, it was a logical
step to embark upon our ACO Division,
and we are
confident that this will bring significant
value to both
our
patient
and
physician members."
CHM
and AHP Founder and CEO of the Florida Association of ACOs, Nicole
Bradberry,
stated
"HealthLynked's
ability to aggregate clinical patient data and share this data with
both the patient and provider in a clinical setting backed by the
actionable opportunities driven by ACO analytics and financial
claims data is a true game changer to drive better outcomes and
reduced medical cost. I am very excited about this
partnership and how together we can penetrate the value-based
marketplace with a truly differentiated model."
Benefits of the Transaction
Revenue and
Profit
Increase. The
acquisition is expected to contribute approximately
$2,250,000
of
revenue and $500,000
in
EBITDA in year one, increasing
HealthLynked's
consolidated revenues
by
47% and
reducing the company's current
annual
cash
burn by over 50%.
Expansion
into Accountable Care Organizations. CHM
is
a
well-established
national
service
provider and AHP is
a well-established ACO
in the
Florida Market
with a
history of
managing
and
supporting ACOs
and receiving shared savings from the
Centers
for Medicare and Medicaid Services (CMS).
In
addition to Florida, AHP includes provider participants in North
Carolina, New Jersey and Indiana. ACOs
seek
to
reduce healthcare costs and improve
health
outcomes for Medicare patients using technology, care coordination
and care management,
making
it an
ideal acquisition for HealthLynked. The
acquisition of AHP positions HealthLynked to engage in value-based
reimbursement programs offered both by CMS and commercial
payers.
Expansion of
Healthcare
Data
Analytics. HealthLynked
will
draw on the best attributes from the
acquisition to
improve the quality of service
for all our patient members,
including our new ACO patients.
AHP
patient
members
will
benefit from HealthLynked's digital
technology that
connects and
analyzes
their
healthcare
data to monitor care,
reduce costs, and
improve outcomes.
HealthLynked
members will benefit from CHP's
and
AHP's
extensive
experience
in quality
care management,
care
coordination and value-based analytics,
including
programs that enhance access to
appropriate care while avoiding unnecessary costs to both the
patients and the system, a tenet of the ACO
model.
Four-year
Consultancy
Agreements
with
Nicole Bradberry and Marsha Boggess.
The
acquisition also includes four-year
consultancy
agreements
with
founders
Nicole Bradberry and Marsha Boggess to head up our newly formed ACO
Division. Ms.
Bradberry and Ms. Boggess will
also
participate with the
HealthLynked
Board
of
Directors as Board Observers
providing
their
expertise
in
ACOs
and
other value-based healthcare models,
including
Management
Service Organizations (MSOs) and
Clinically Integrated Networks (CINs).
Advisors
K&L
Gates LLP is serving as legal counsel for the acquisition.
George
O'Leary, Chief Financial Officer of
HealthLynked stated, "This
will be the second
of
numerous
acquisitions
for HealthLynked,
now
focused
on:
-
Data
Driven Healthcare
businesses –
ACOs,
MSOs
and
CINs
-
MSOs
–
providing
both management services and ACO quality care services to
multiple
physician
practices
and networks including those aggregated under a single
tax ID.
-
CINs –
developing clinical integration for all providers participating in
these models.
Our
acquisition strategy
is
focused
on purchasing
high growth, profitable ACO
and/or MSO businesses
that
complement our digital healthcare business
growth
by paying
4 times adjusted EBITDA, with 25%
in cash, 50%
in HLYK stock, and 25%
in four-year
performance-based
payouts."
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 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