Acquisition announcement after Friday Close
CloudMD Closes Acquisition of Medical Confidence Inc., a Revolutionary, Technology-based, Healthcare Navigation Platform for Enterprise Clients
Leverages database of 50,000 specialists to reduce wait times for specialist appointments and medical procedures resulting in better access to care and return to work outcomes.
Proven results include: 20% reduction in benefit and disability costs, 6-month reduction in disability duration (on average), access to treatment 220 days sooner (on average) and improved employee satisfaction (reported by 75% of clients).
Long standing contracts with Canada’s largest group benefit and disability insurers.
Integrated with CloudMD, the combined suite of Enterprise Solutions including iMD Health, HumanaCare and SnapClarity will provide one, multi-functional platform which addresses total health (mental and physical care) and provides a direct and existing pathway into corporations and insurers.
Immediately accretive with high margin revenues of approximately $2 million with earnings before interest, taxes, depreciation and amortization (EBITDA) margins exceeding 26%.
VANCOUVER, British Columbia, January 15, 2021-- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telehealth company seeking to revolutionize the delivery of health care to patients, is pleased to announce that it has closed the previously announced acquisition of Medical Confidence Inc. (“Medical Confidence”), a revolutionary healthcare navigation platform with proven results in wait time reduction and patient satisfaction.
Medical Confidence provides access to a proprietary, real time digital database of publicly available specialists and their wait times, allowing patient referrals to the right specialist in the shortest available time. The platform provides medical consultations, wellness plans and referrals to Canadian healthcare providers in support of patients’ mental and physical health issues. The company’s clinical health care navigators use a collaborative, team-based, approach that leaves individuals motivated and supported throughout their care journey, as well as eliminates frustrations and mental health issues surrounding lack of access to care and long wait times to see appropriate care.
Medical Confidence’s solutions are utilized by a wide range of customers including employers, individuals, disability case managers, life and health insurers and property and casualty insurers. Proven results include a 20% reduction in benefit and disability costs, 6-month reduction in disability duration (on average), access to treatment 220 days sooner (on average), and improved employee satisfaction (reported by 75% of clients). Currently, Medical Confidence has long standing contracts with Canada’s largest group benefit and disability insurers.
The integration of Medical Confidence into CloudMD’s platform of Enterprise Solutions will enable employers and insurers to realize lower absenteeism and improved return to work outcomes with personalized health and wellness care plans and improved access to healthcare resources. The combined forces of CloudMD, Snapclarity, HumanaCare, iMD and Medical Confidence changes the landscape where employers can offer one solution that addresses the health needs of their workforce and eliminates the need of multiple vendors. Employers will be able to offer their employees a group benefit plan that will not only provide access to care for mental and physical health issues but improve the financial costs associated with the current $7.5 billion dollars spent on long term disability.
The acquisition is immediately accretive to CloudMD as Medical Confidence generated approximately $2 million in revenues with earnings before interest, taxes, depreciation and amortization (EBITDA) margins exceeding 26% over the last fiscal year ending March 2020. Medical Confidence drives revenue through retainer-based, multi-year contracts with enterprise clients, and has experienced year over year revenue growth exceeding 35% in last fiscal year. CloudMD intends to integrate Medical Confidence into its suite of products to realize and optimize revenue synergies and cross selling opportunities.