With a fragmented healthcare system, primary care network companies, like Oak Street Health and One Medical are benefiting from higher demand. One Medical for example just saw its revenue jump 46% year over year to $101.7 million, as reported by Health Care Dive. “We are pleased to have reached new heights in performance this quarter--with our membership surpassing half of a million members and quarterly total net revenue exceeding $100 million for the first time,” said Amir Dan Rubin, Chair & CEO of One Medical. “We are further seeing how One Medical’s human-centered and technology-powered model is delivering impacts for multiple key stakeholders, advancing our efforts to transform healthcare at scale.”
Meanwhile, Oak Street Health saw revenue jump 57% to $218 in its latest quarter. “Our strong third quarter results were highlighted by 38% growth in at-risk patients, 57% revenue growth, and the resumption of new center openings, as we opened 13 centers during the quarter amidst continued uncertainty related to the COVID-19 pandemic,” said Mike Pykosz, Chief Executive Officer of Oak Street Health.
In addition, Prad Sekar, Chief Executive Officer of Skylight Health Group stated, “We are excited to see the continued efforts of our team and commitment to patient care result in a second consecutive adjusted EBITDA positive quarter and, for the first time in our company’s history, a full nine months of positive Adjusted EBITDA. We have continued to execute against our business plan, strengthen our management team and create programs that will ultimately delight our patients and optimize their health outcomes.” Such growth and demand is creating opportunity for Skylight Health Group Inc. (CSE:SHG)(OTCQB:CBIIF), Oak Street Health Inc. (NYSE:OSH), WELL Health Technologies Corp. (TSX:WELL)(OTC:WLYYF), 1Life Healthcare Inc. (NASDAQ:ONEM), and Community Health Systems Inc. (NYSE:CYH).
Skylight Health Group Inc. (CSE:SHG)(OTCQB:CBIIF) BREAKING NEWS : Skylight Health Group Inc. , one of the largest multi-specialty healthcare systems in the United States, today reported its earnings for fiscal Q3 2020 for the period ended September 30, 2020. Additional information regarding the Company, including its interim financial statements and Management’s Discussion and Analysis, can be found at www.sedar.com and on the Company’s website (www.skylighthealthgroup.com). All amounts are expressed in Canadian dollars unless otherwise noted.
Following an industry-wide initial reduction of visits in March 2020 due to the COVID-19 pandemic, Skylight Health has continued to see growth in patient visits and registrations, while ongoing improvements to its business model and operating structure have led to reduced costs for delivery of services. The implementation of a telemedicine offering has created opportunities to further reduce the cost of healthcare delivery with lower overheads, higher margins, and improved availability for patients.
The Company expects that virtual care including telemedicine will remain a key delivery model within its growth plan. The Company continues its expansion through the US both organically and by way of acquisition with two new states added in October and November 2020 and a third acquisition announced to close in early 2021. Collectively, the 3 acquisitions are expected to contribute $5 million in annualized revenue and $1 million in annualized EBITDA to the current run rate. As of November 27th, 2020, the Company has CA$10 million in cash on its balance sheet and is focused on its 3-pronged growth strategy including the expansion of insurable services to its current patient roster, subscription for the un/underinsured and accretive acquisitions.
Prad Sekar, Chief Executive Officer of Skylight Health Group stated “We are excited to see the continued efforts of our team and commitment to patient care result in a second consecutive adjusted EBITDA positive quarter and, for the first time in our company’s history, a full nine months of positive Adjusted EBITDA. We have continued to execute against our business plan, strengthen our management team and create programs that will ultimately delight our patients and optimize their health outcomes. Further we are beyond thrilled to be operating under our name Skylight Health Group and the opportunities it represents for us and our stakeholders in the years to come.”
Mr. Sekar continued, “During our last earnings call in August 2020 we stated that it was time for us to go on the offensive. I am proud to say that we are doing just that. We look forward to executing against our business plan and bringing real value to all our stakeholders.”
Summary of Q3 2020 Key Milestones and Consolidated Results
- Total revenue for Q3 2020 was $3.3 million, compared to $4.2 million in Q3 2019 due to a change in revenue reporting for same services rendered as a result of change in regulations. Annual revenue per patient remained the same;
- Gross profit was $2.3 million in Q3 2020 compared to $2.6 million from Q3 2019. The reduction was due to the normalization of revenue identified above. However, the Company did see an overall growth in the gross profit margin to 71% in Q3 2020 compared to 70% in Q3 2019 due to improvements to capacity utilization and technology deployment;
- Adjusted EBITDA was $331,122 in Q3 2020 versus an adjusted EBITDA loss of $368,588 in Q3 2019 due to continued improvements to the operating model and top line growth;
- In April 2020, the Company launched Skylight Health Group as part of its clinical operations in the US to focus on integrated healthcare and providing low cost insurable services to patients;
- Currently, the Company has approximately CAD $10.5 million in cash;
- In July 2020, the Company launched the first in a series of monthly medical reports derived from real-world clinical treatments on a variety of healthcare conditions and modalities across the United States, Canada and United Kingdom;
- In August 2020, the Company announced the addition of Insurance Industry Veteran Pam Galassini to its Leadership Team as Senior Vice President, Business Development. Galassini brings more than 20 years of pharmacy benefit management, payor insights and pharmaceutical manufacturer strategies and solutions experience to the Company.
Other related developments from around the markets include:
Oak Street Health Inc. (NYSE:OSH), a network of value-based primary care centers for adults on Medicare, is expanding access to more older adults in North Carolina with opening of its newest center at 1000 North Miami Blvd, Suite 121 in Durham. The new center brings the number of Oak Street Health centers in North Carolina to six. “We are excited to bring access to our high-quality, value-based care to members of the Durham community with the opening of this new center,” said Tamara Jurgenson, Chief Growth Office.“We care for the most vulnerable patients, the majority having two or more chronic conditions. As our organization continues its mission to rebuild healthcare as it should be, we look forward to improving patient outcomes in North Carolina and helping older adults live their healthiest lives.”
WELL Health Technologies Corp. (TSX:WELL)(OTC:WLYYF), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to announce that via its Tia Health subsidiary, it has partnered with a leading Canadian lab company to provide eligible patients with prescriptions for COVID-19 (SARS-CoV-2) Antibody testing. “Now that a Health Canada-approved test for COVID-19 Antibodies is available, we are helping a leading national lab company uncover hidden past cases of COVID-19 by providing eligible patients with a doctor’s prescription for obtaining a highly accurate blood test that can detect the presence of COVID-19 antibodies,” said Dr. Michael Frankel, Chief Medical Officer of WELL. “When these antibodies are found, it means that there has been a historical COVID-19 infection. We believe such tests will be critical in addition to the administration of a capable vaccine to provide Canadians with the comfort needed to address the COVID-19 pandemic for at least several quarters.”
1Life Healthcare Inc. (NASDAQ:ONEM), announced that Amir Dan Rubin, Chair & CEO, and Bjorn Thaler, CFO, will participate in the Piper Sandler 32nd Annual Virtual Healthcare Conference on Wednesday, December 2nd, 2020 and Thursday, December 3rd, 2020.
Community Health Systems Inc. (NYSE:CYH) announced financial and operating results for the three and nine months ended September 30, 2020. Commenting on the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, “Our results in the third quarter reflect strong progress on strategic activities taking place across the organization and the ability of our markets to effectively meet the challenge of a global pandemic. Our hospital leaders and frontline caregivers have done a tremendous job of caring for patients with COVID-19 and for patients with other healthcare needs. We are especially pleased with efforts to quickly resume certain services that were restricted during shelter-in-place orders earlier in the year as well as our favorable results during the third quarter. While we have directed our attention and resources to managing through the pandemic, we have also remained focused on the completion of our divestiture work, investments to support growth in our markets, and margin improvement programs. These strategic activities continue to generate positive results and we remain optimistic about our opportunities for even more progress moving forward.”
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