Sacred Heart and potential annual revenue of $72M Back in April 2016, RHT announced a paid pilot with Sacred Heart Health System (See NR below). The importance of this news release was lost on many investors. While other significant pilots and contracts have already been announced and many more are expected to be announced, I would like to dive a little into the Sacred Heart (SH) Pilot.
First, to get an institution with the brand name, reputation, and size of Sacred Heart to commit the funds, resources, and time necessary to run a pilot with RHTs (a Canadian microcap) platform is a tremendous feat on its own. Getting to this stage means that Sacred Heart has done its due diligence, committed resources, and has all the intention in the world to implement the platform where applicable.
The pilot period is usually a test ground to work out any kinks in the process and make any necessary tweaks before expanding it to more patients. Once the pilot is completed, I believe we would see this turning to a full contract within 6 months, which is likely to be around Q1 2017 (maybe Q2 to be conservative). Once the contract is in place, the Company would charge 200$ per patient per month to Sacred Heart. To put that in perspective, I throw the following potential revenue that could be generated from SC:
1) 5% of patients = 200$ * 1,500 Patients = 300,000$ per month or $3.6M USD per year
2) 10% of patients = 200$ * 3,000 Patients = 600,000$ per month or $7.2M USD per year
The full potential of this deal is having 30,000 Sacred Heart patients using RHTs platform earning the company recurring annual revenue of USD72M (30k*200$*12 months)
To be clear, I am in no way saying that all 30k patients will be using the platform immediately, however; I do expect that once a contract is in place the ramp up would be quite quick.
Now this is one pilot that has been announced for one healthcare institution (Sacred Hearth Health System) in one country. The even bigger picture is yet to follow.
Sacred Heart is a member of the very large Ascension Health. Ascension Health is the US’s largest non-profit health system and the world’s largest Catholic health system. To get an idea of its size see the following stats:
2,500 sites of care in 24 states and the District of Columbia
- 142 hospitals
- More than 30 senior care facilities
So basically, the Sacred Heart announcement has tremendous implications. If investors do their due diligence and understand the implications of the aforementioned NR and other NRs announced since, they will realise just how undervalued RHT is.
But at the end of the day we are dealing with the venture, short sighted brokers shifting positions, investors panicking or chasing the next momentum play. But eventually, what RHT will achieve will just be too big to ignore and the share price will explode. I’ve seen it many times before and will not be surprised when it happens here. I personally prefer to accumulate my position slowly and wait for my due diligence to pay off big.
Good luck to all, narmar
2016-04-04 07:22 ET - News Release
Dr. Lisa Crossley reports
MOSEDA ANNOUNCES PAID PILOT WITH FLORIDA, USA BASED SACRED HEART HEALTH SYSTEM
Moseda Technologies Inc. has secured a paid pilot with Sacred Heart hospital in Florida, United States. The pilot will evaluate the use of Moseda's CareKit Health platform to monitor patients postdischarge from hospital.
"We are excited to be piloting Moseda's newest product, the CareKit Health platform, with Sacred Heart," said Dr. Lisa Crossley, chief executive officer of Moseda. "The CareKit platform uses a high-tech, low-touch approach to provide high-quality care in the home, reducing the cost of care delivery, improving health outcomes, and increasing patient and family satisfaction with their care. Our pilot with Sacred Heart is designed to validate the use of our innovative health care technology solution which will help their patients better manage their health and spend less time in hospital."
Sacred Heart health system is northwest Florida's leading provider of high-quality health care to children and adults. The hub of the Sacred Heart system is its 566-bed Sacred Heart hospital in Pensacola that includes the region's only children's hospital, a Level II trauma centre, a cancer centre affiliated with MD Anderson Cancer Network, and a heart and vascular institute. The health system also includes Sacred Heart hospital on the Emerald Coast, a 58-bed community hospital near Destin, Sacred Heart hospital on the gulf, a 19-bed hospital in Port St. Joe, and Sacred Heart Medical Group, a large regional network of primary care and specialty physicians with offices across seven coastal counties between Gulf Shores, Ala., and Apalachicola, Fla. In 2015, Sacred Heart Hospital in Pensacola was named a winner of the Truven Health 50 Top Cardiovascular Hospitals award. Sacred Heart has more than 4,000 employees and is part of Ascension Health, the nation's largest system of catholic and non-profit health care facilities.