NEWS: Skylight Health closes purchase of Tennessee Clinichttps://www.globenewswire.com/news-release/2020/12/30/2151779/0/en/Skylight-Health-Announces-Closing-of-Tennessee-Clinic-with-2-2-Million-in-Revenue-and-Positive-EBITDA.html
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Source: Skylight Health Group Inc.
- Company closes acquisition of Tennessee-based Perimeter Pain and Primary Care Clinic previously announced on December 3, 2020
- Tennessee-based Perimeter Pain and Primary Care Clinic is an established medical practice servicing over 12,000 patients per year.
- In 2019, the clinic generated CAD 2.2 million in revenues and CAD 400,000 in EBITDA.
- This transaction will be immediately accretive to the Company adding complementary services and insurable revenue to the existing primary care model across 15 States.
TORONTO, Dec. 30, 2020 (GLOBE NEWSWIRE) -- Skylight Health Group Inc (CSE: SHG; OTCQX: SHGFF) (“SHG” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has closed on the acquisition of Healthcare Resources Management LLC (“HRM”) which operates Perimeter Pain and Primary Clinic (“Perimeter”) in Cookeville, Tennessee. The Company previously announced the Letter of Intent with HRM on December 3, 2020. The completed acquisition of HRM expands the Company’s bricks and mortar and telemedicine services to 15 States and will add 12,000 new patients to its current roster of 120,000.
HRM has been operating Perimeter in Cookeville for over 7 years with strong patient retention. Services to patients include primary care, chronic pain management, interventional procedures, weight management, regenerative medicine and aesthetics. Services provided by Perimeter are primarily reimbursed through insurance carriers including Medicare, Medicaid and other commercial payors.
The Company expects to see continued growth in patient registrations and visits as Perimeter continues to thrive among the challenges most clinics have faced due to the recent COVID-19 pandemic. Further, the Company will work quickly to expand on the current offering of services by leveraging its current telemedicine infrastructure to provide access to patients across the state of Tennessee. Services offered by Perimeter will apply to Skylight Health’s entire patient base. These services are immediately accretive as they allow the Company to expand complementary billable services. Patients will continue to benefit from the expansion of services in-house. The Company will benefit by expanding the per patient insurable revenue share-of-wallet by retaining these services internally.
“Perimeter represents the first of complementary non-primary care acquisitions and is in direct alignment with our strategy to expand on services offered to our existing patient base nationally,” said Prad Sekar, CEO, Skylight Health. “Adding vital services like chronic pain management, interventional procedures and other from Perimeter will benefit tens of thousands of our current patients and will be deployed nationally within the existing framework of payor contracts in each state we are organically establishing over the next year.”
SHG has acquired 100% of the shares of HRM for a transaction value in cash of CAD 1.03 million representing an EBITDA multiple of 2.6x. Perimeter reported unaudited revenues in 2019 of CAD 2.2 million and net income of CAD 400,000.
The Company also announces it has issued 164,081 shares to certain consultants for services rendered.
About Skylight Health Group
Skylight Health Group (CSE: SHG; OTCQX: SHGFF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing.
The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations.
With a patient roster of over 120,000 patients, the Company’s operations servicing 14 states and continues to expand in services and locations both organically and by way of strategic acquisitions.
The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.