news release - acquisition WELL Health Announces Two New Acquisitions into WELL EMR Group and Reaches 2,200 Clinics Under Management
Friday, January 8, 2021, 6:45 AM ET
VANCOUVER, BC, Jan. 8, 2021 /CNW/ - WELL Health Technologies Corp. (TSX: WELL) ("WELL" or the "Company"), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to provide the following update related to its WELL EMR Group:
-- WELL continues to grow the WELL EMR Group both inorganically and organically through 'tuck-in' acquisitions and strategic alliances that migrate clinics to WELL's OSCAR Pro platform. -- WELL announces its acquisition of 100% of the issued and outstanding shares in the capital of Open Health Software Solutions Inc. ("OpenHealth"), an OSCAR(1) service provider to medical clinics primarily located in Ontario. -- During the last few months of 2020, WELL successfully transitioned all clinics from ClearMedica Corporation ("ClearMedica"), formerly a certified OSCAR service provider, onto WELL's OSCAR Pro platform. -- WELL has entered into a customer purchase agreement with a certified non-OSCAR EMR provider to migrate its clinics and physicians onto OSCAR Pro. This migration is expected to add several hundred more clinics to WELL's EMR network. -- WELL EMR Group had a record quarter in Q4-2020 growing more than 100% year-over-year compared to Q4 of the previous year, and achieved over 25% EBITDA margins(2) in the fourth quarter. Additionally, clinics using WELL's OSCAR EMR platforms generated approximately $325M in billings(3) during Q4-2020, inferring an annualized billing run rate of approximately $1.3B per year. -- WELL ended its fiscal fourth quarter and year with approximately 2,200 clinics and over 10,700 physicians as at December 31, 2020, which includes the clinics formerly using ClearMedica's EMR product. OpenHealth and the non-OSCAR EMR provider are expected to be mostly consolidated with the WELL EMR Group during the first half of 2021. "We are very excited to have transitioned all the approved(4) OSCAR service providers associated with OpenHealth and ClearMedica onto our OSCAR Pro platform," said Arjun Kumar, CIO of WELL. "In addition, our first agreement to migrate doctors and clinics from a non-OSCAR EMR provider to OSCAR Pro is an important milestone in WELL's ability to continue to grow its EMR customer base. This type of arrangement is powerful in that it expands our addressable market and furthers our aggressive growth strategy."
Based out of Ottawa, Ontario, OpenHealth is in the business of providing open-source software services and support related to OSCAR EMR.
ClearMedica was previously a certified OSCAR EMR provider based in Mississauga, Ontario. The Company successfully migrated all of its doctors and clinics to WELL's OSCAR Pro system in the second half of 2020.
Under the terms of WELL's first non-OSCAR customer purchase agreement, WELL has agreed to pay the certified non-OSCAR EMR provider an agreed upon amount for each customer that transitions or migrates to become a customer of WELL over a two-year period. The price payable by WELL for each customer is based on that customer's annual recurring revenue. The non-OSCAR EMR provider is in the business of providing services and support related to medical practice and clinical management software, including EMR and related services.