MIT Holding (MITD) Identifies Industry Transition to Value-B MIT Holding (MITD) Identifies Industry Transition to Value-Based & Ambulatory Care; Moves to Profitability as a Result
The continued growth of the ambulatory (outpatient) care market is driven by a number of emergent factors. The increase in life spans have incubated a prevalence of diseases such as diabetes and COPD (chronic obstructive pulmonary disease) among an increasingly elderly population of retiring Baby Boomers. Insurance carriers are now authorizing payments for more services that that result in more affordable convenience and logistical efficacy of home-based recuperation for these patients, with cost savings of up to 65 percent for minimally invasive procedures when performed at home or in an ambulatory care center. However, it is extremely difficult for already overburdened families to successfully arrange and utilize a comprehensive suite of services, such as home-based infusions, access to durable medical equipment (DME), and the benefits of a comprehensive prescription drug program administrated by a pharmacy benefit manager, by a single healthcare provider (PBM).
MIT Holding Inc. (OTC: MITD) has identified this niche and filled it successfully. Moreover, all participants in the ambulatory care market, whether patients, medical facilities or insurance carriers, benefit directly from tight-knit relationships and the kind of well-oiled networking machinery that MIT Holding offers its patients.
This is particularly important as the industry continues rapidly transitioning from Meaningful Use Stage 1 requirements to the much more complex criteria of Stage 2, where robust clinical reporting that is in-line with regulatory and quality-driven initiatives, as well as coordinated care and patient engagement, are paramount. When it comes to Medicare and Medicaid EHR (electronic health record) Incentive Program participation, healthcare information technology (HCIT) continues to open new doors for the ambulatory care market, and this segment of the overall healthcare market stands to deliver optimum results when it comes to the prevailing value-based care initiatives as well. Patient long-term outcomes and customer service are more of a key focus in ambulatory care than in acute hospital care, and this is a major driving factor of the industry’s continued shift toward ambulatory care.
Organized as a single source provider for a wide range of services and products to patients through its network of affiliates and contractors, MIT Holding is able to hit the sweet spot between cost effective care and customer service. The company delivers intravenous infusions for home and ambulatory care center injection via its full service compounding pharmacy, as well as pharmaceuticals, medical equipment for the home, and other home-based healthcare. The typical high cost of specialized infusion pharmacy services can be substantially ameliorated through ambulatory care, and the kind of customized education/counseling that is also required to get the patient situated regarding their condition and the requisite treatments, is ideally deliverable via the ambulatory care model (again in clear contrast with hospital care).
Saving the patient time and money is also a highly lucrative niche market for MIT Holding, as infusion medications typically require preparation by highly specialized pharmacy operations employing registered pharmacists, and the therapy itself is generally administered by a registered nurse or trained caregiver that ideally has established a good, long-term relationship with the patient.
A growing number of therapies are now deliverable in this fashion as well, making in-home treatment increasingly attractive to patients, and the option of going to a contracted ambulatory care center (the company operates one itself), staffed with full-time nurses and a doctor, in order to receive improved consultation, or assistance in obtaining reimbursement, is seen as a huge advantage to many patients and their families.
This is a big, growing market for MIT Holding, spanning such infusion therapies as total parenteral nutrition for chronic digestive and gastro-intestinal disorders, anti-ineffective therapies for diseases like chronic urinary tract infections, chronic pain management through intravenous or continuous analgesics, and a variety of others. In this same vein, the company’s DME sales and leasing capabilities, with access to a host of devices ranging from wheelchairs and oxygen concentrators, to nebulizers and other sustained-use equipment, provides MIT Holding with a constantly growing amount of Medicaid billing.
The expansion last year of the DME contract by WellPoint’s (NYSE: WLP) Georgia subsidiary, Amerigroup Community Care, to cover all of MIT Holding’s services (including ambulatory, infusion and perinatal), is a prime example of the company’s continually growing post-acute network footprint. Similarly, two contracts awarded more recently by HCIT and post-acute treatment patient transition innovator Curaspan Health Group, which maintains an impressive 98 percent customer retention rate, gave the company real-time access to market its compound pharmaceuticals, infusion services and DME offerings to the patients of over 5,400 Curaspan driven medical facilities nationwide.
The company’s deal with Coastal Carolina Medical Center is another good example here, in that the in-patient treatments MIT Holding was initially engaged to do dovetail exceptionally well with subsequent, more expansive ambulatory care service provisions, generating billing in the $1,000 per treatment range for the company.
With current approval by more than 130 insurance carriers for a variety of medical goods and services, as well as a much more focused core of operations specifically in the home health recovery space, MIT Holding has seriously tightened up its cost and revenue structure subsequent to its reorganization that began in 2011, and currently enjoys a 32 percent net profit standard on sales, services, and the like moving forward. Estimates of up to 90 percent savings for patients who utilize in-home infusion services will continue to be a major contributor to the company’s success, and with the U.S. home infusion market on track to grow 68 percent over the next five years to around $26.7 billion, MIT Holding will be looking to carve an ever-increasing slice of that pie off for its shareholders in years to come.
A continued focus on providing affordable, customer service-driven delivery of high-cost, low volume specialty infusions spells big profit for MIT Holding, and the requisite handling/administration requirements associated with such infusions will help the company maintain a firm grasp on the underlying market’s dynamics. And because MIT Holding handles all its own billing and collection practices via a sophisticated computerized billing framework, obtaining the lion’s share of its revenues from contracts with third party payers, affiliates and contractors, as well as self-pay patients and self-insured employers, the company has unprecedented fluidity when it comes to the claim review and editing process, as well as granular pre-service initiation control driven by rigorous insurance coverage verification and carrier authorization protocols.
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