Skylight Health is a healthcare company focused on bringing tech to the medical space. They're eliminating the traditional fee-for-service (FFS) model to a value-based care (VBC) through the acquisitions of small and independent practices and introduction of tech and data analytics..
- FFS model: Payors (commercial and government insurers) reimburse on an encounter-based approach. This puts a focus on the volume of patients per day, and creates traffic, wait times, and an overall unpleasant experience for patients
- VBC model: Payors reimburse typically on a capitation (fixed fee per member per month) basis. This emphasizes quality over quantity (fewer wait times and an improved patient experience). VBC will lead to improved patient outcomes, reduced cost of delivery and drive more robust financial performance from existing practices.
Clearly, VBC is the best practice. By focusing on the patient experience and outcomes, $SLHG can secure more patients and have a more effective healthcare approach. And this effect is reflected within the companies growth. The stock is currently in prime breakout territory.
- 5 analysts: Consensus estimate of $9.1, with the highest pt being $10.50 and the lowest pt being $8 (CAD)
- Holding near the bottom support line with $15M cash, and no long-term debt
- Strong acquisition pipeline for revenue growth and business expansion
- 120,000+ patients in 14 states
https://skylighthealthgroup.com
The Q2 earnings on August 16th (post-market) could be the exact catalyst we need to see an SP recovery, so I'll be looking forward to the numbers. Overall, $SLHG looks like it's hitting the bottom here and is due for a comeback.
Earnings call: https://www.globenewswire.com/news-release/2021/08/10/2277973/0/en/Skylight-Health-Announces-Q2-2021-Earnings-Conference-Call.html