Skylight Health Announces Re-Opening of 4 Primary Care Clinics to Drive Organic Growth
- Company announces the re-opening of four clinics scheduled to open next month in Maine, Massachusetts, Colorado and New Jersey.
- Re-opening drives the 2021 organic growth strategy to convert existing non-insurable service clinics to primary care and multi-disciplinary practices by the end of 2021.
- There are over 12,000 existing patients currently registered to these clinics that will now receive access to complete primary care services under an insurable services model.
- The conversion of existing practices is incremental to the 6 announced acquisition transactions over the past 6 months.
- Company expects to boost revenue run rate organically by $3 million annualized over the next 12 months through these initial 4 practices.
TORONTO, ON – January 21, 2021 – Skylight Health Group Inc (TSXV:SHG; OTCQX: SHGFF) (“Skylight Health” or the “Company”), is pleased to announce that it will begin in-person primary care services in 4 of its existing clinical locations in the US. These will include:
- Bangor, ME
- Yarmouth Port, MA
- Princeton, NJ
- Denver, CO
Between 2017-2019, the Company acquired over 30 clinics across 16 states that were historically focused on non-insurable patient services. As part of the Company’s transition and evolution to primary care services in the US driven by patient need, Skylight mandated that these locations servicing over 100,000 patients would be transitioned a to primary care practices. The 4 locations noted will be the first of many conversions this year. Patients are to receive a holistic and inclusive range of services including primary care, urgent care, and other sub-specialties. Providers will be credentialed with both government payors (Medicare/Medicaid) and commercial payors, thus offering the most flexibility for patients, and enhanced reimbursement opportunities for our clinics.
Prad Sekar, CEO, Skylight Health says “Our model is to focus on the prevention, not just the treatment, of acute and chronic patient conditions. It is our responsibility as the primary care provider to meet all patient needs, even those they have not anticipated. If we do a better job collectively, we can significantly reduce the costs to our healthcare system, unnecessary emergency room admissions and re-admissions, and improve overall patient health outcomes. We are proud to continue to execute against our 2021 roadmap and look forward to future announcements as we bring additional locations to market and drive our organic growth plan.”
Over the past 6 months, the Company has announced 6 clinic transactions and closed on 4 so far, expanding into 2 new markets and acquiring over 50,000 new patients. On closing of all current transactions, the Company expects to see an annual revenue run rate of $46 million, not including growth from organic enhancements and the conversion of its previously non-insurable service clinics.
Prad Sekar continues “The addition of conversion clinics significantly bolsters market share as well as revenue growth without further dilution considerations or major capital requirements. Once successful within these initial 4 locations, we expect to bring over $3 million in incremental annualized revenues to our overall contributed growth this year.”
The Company plans to begin communications to patients in the coming weeks as it prepares the opening of each of the 4 practices.