WELL Health Forms Two Lines of Business for All Operations and Provides Key Progress Updates on CRH Medical and MyHealth
- WELL has organized all its business operations in two key lines of business, Omni-Channel Patient Services and Virtual Services1
- Omni-Channel Patient Services includes all patient services businesses that have exposure to in-person operations in addition to virtual care and/or other business models. Virtual Services are comprised of businesses that are almost entirely digital in nature inclusive of SaaS and services, revenues from the company's practitioner enablement platform or patient services businesses and have little to no exposure to in-person care.
- WELL acquired both CRH Medical or “CRH” and MyHealth Partners or “MyHealth” in the past few months and is pleased to report that both are on track and producing as expected. Both CRH Medical and MyHealth are part of the Omni-Channel Patient Services Group.
- CRH Medical will deliver north of US$40M in free cash flow before leverage and tax costs in 2021 and will have completed another 10 additional tuck-in transactions in 2021, positioning for elevated cashflow performance in 2022.
- MyHealth has completed two tuck-in transactions post becoming a WELL Health company and is expected to continue to grow with double-digit organic growth rates in 2022 and deliver north of CAD$20M in free cashflow in 2022.
Vancouver, B.C. – October 28, 2021 - WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL”), a company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to provide key updates on the company’s newly updated lines of business and progress reports on its two largest acquisitions to date, CRH Medical and MyHealth Partners.
Hamed Shahbazi, WELL’s Founder and CEO commented: “WELL has been working hard to integrate, streamline operations and activate network effects and we are excited to report that the results are excellent, mainly because WELL has phenomenal business unit leaders and operators. Our tech enablement of healthcare practitioners plus capital allocation program is working and as a result, we are experiencing unprecedented growth. We look forward to speaking to this acceleration of organic growth across our business at our upcoming earnings event.”
WELL Organizational Update – Two Key Lines of Business
WELL is very pleased to update its stakeholders on its simplified and streamlined organizational view. WELL has formed two key lines of business, Omni-Channel Patient Services and Virtual Services. The key differentiator between these two divisions is material exposure to brick-and-mortar operations. Virtual services have very little exposure to aforementioned, whereas WELL’s Omni-Channel Patient Services have material exposure to both in-person care and other virtual care and fulfillment models.
Michael Frankel, WELL’s Chief Medical Officer commented: “WELL provides healthcare practitioners a powerful choice to modernize their practice, you can choose to source any part of our digital practitioner enablement platform directly for your own patient service business or you can join one of WELL’s own patient services businesses, where WELL provides a total managed service offering. You can run your own business or join ours.”
Despite the fact that more than 15,000 healthcare practitioners use the company’s products and services, the majority of revenues generated by the Company are attributable to the over 2,000 healthcare practitioners that work in WELL’s omni-channel patient operations.
CRH Progress Update
CRH continues to be a force in the GI practice community, having closed 10 additional anesthesia transactions in 2021 thus far with a number of new initiatives at its O’Regan banding segment, including a patient-focused multiplatform digital app which we expect to roll out in the next few weeks. CRH is on track to generate more than US$40M in free cashflow before leverage and tax costs in 2021. CRH is also making a number of strides towards digitizing legacy processes to improve areas of operations. A key example of this is its revenue cycle management function. As part of the WELL ecosystem now, CRH has been instrumental in unlocking opportunities for WELL’s other business units. Examples are as follows; CRH has opened a new sales channel for the Source44 business unit, namely providing cybersecurity tools to GI practices; WELL is now working on ramping up patient services using the O’Regan system, its own patented and FDA approved best-in-class hemorrhoid banding system.
MyHealth Progress Update
MyHealth has completed its first two accretive acquisitions with the latest being Durham Nuclear Imaging, a nuclear medicine clinic east of Toronto in Ontario, Canada. MyHealth is on track to deliver more than CAD$20M in free cashflow generation in 2022 before leverage and tax costs. With WELL’s recently announced acquisition of Aware MD, WELL will soon own the Cerebrum™ EMR that powers MyHealth’s substantial cardiology practice. The integration of clinical services and technology on a single platform will allow WELL to enhance and digitize the Practitioner and Patient experience in specialty care. Leveraging WELL’s past success in primary care with the integration of our Oscar Pro EMR and our WELL Health Medical Clinic Network, WELL will seek similar synergies in our specialty care platform. MyHealth is also pleased to announce that upon invitation from the Canadian Federal Government the company is offering medical examinations and associated diagnostics to newly arrived refugees from Afghanistan. MyHealth is proud to have been selected for this important humanitarian effort and views this opportunity as a chance to serve those more vulnerable in a welcoming environment. WELL remains the largest owner-operator of outpatient medical clinics in Canada with 75 combined clinics.
Both CRH and MyHealth are fully integrated with WELL’s backoffice accounting and governance programs. The Company has also recently launched a corporate-wide procurement optimization program overseen by its Chief Operating Officer, Amir Javidan. The results have been promising with significant cost savings across all business units accounting for what is expected to be millions of dollars over the next few years.
(1) WELL’s Virtual Services Businesses includes all aspects of our practitioner enablement platform, including EMR or Electronic Medical Records, RCM or Revenue Cycle Management, digitally oriented patient service businesses, cybersecurity services, and WELL’s digital app Business Unit which includes virtual care and other physician productivity tools and applications.
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL is a technology enabled healthcare company whose overarching objective is to positively impact health outcomes to empower and support healthcare practitioners and their patients. WELL has built an innovative practitioner enablement platform that includes comprehensive end to end practice management tools inclusive of virtual care and digital patient engagement capabilities as well as Electronic Medical Records (EMR), Revenue Cycle Management (RCM) and data protection services. WELL uses this platform to power healthcare practitioners both inside and outside of WELL’s own omni-channel patient services offerings. WELL owns and operates Canada's largest network of outpatient medical clinics serving primary and specialized healthcare services and is the provider of a leading multi-national multi-disciplinary telehealth offering. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and is part of the TSX Composite Index. To learn more about the company, please visit: www.well.company.
This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company’s goals, strategies and growth plans; the expected benefits and synergies of completed acquisitions; the expected financial performance as well as information in the “Outlook” section herein. Forward-looking information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking information generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. WELL’s statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
For further information:
Pardeep S. Sangha
VP Corporate Strategy and Investor Relations