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VANCOUVER, BC, Aug. 30, 2022 /CNW/ - CareSpan Health, Inc. (TSXV: CSPN) ("CareSpan" or the "Company"), the 'Clinic-in-the-Cloud' leader addressing the shortage in primary care and improving the delivery of chronic and urgent care, as well as mental health, today reported financial results for the three and six months ended June 30, 2022. Unless otherwise stated, all amounts are in US dollars.
"CareSpan delivered strong revenue growth for the six months ended June 30, 2022 compared to the six months ended June 30, 2021. Our strong growth in revenues and patient visits continues to validate our business model, integrated digital care platform, and our team," said Rembert de Villa, CareSpan's CEO. "We continue to be very focused on our mission to tackle the widening primary care and mental health provider shortage and the escalating cost of chronic care through our focus on enabling quality affordable access, mainly through nurse practitioners as well behavioral health clinicians. I am pleased by our ability to deliver solid growth, while managing our cost structure and building capabilities to support long-term growth."
Second Quarter 2022 Financial Highlights
- Revenues of US$2.875 million for the six months ended June 30, 2022 compared to US$2.311 million for the same period in 2021, an increase of 24%.
- Patient visits for the six months ended June 30, 2022 were 23,106 compared to 13,500 for the same period in 2021, primarily driven by a surge in COVID-19 related patient visits in the first quarter of 2022 and the seasonal nature of the business.
- The number of providers in our networks increased to 100 practitioners as of June 30, 2022 from approximately 50 practioners as of June 30, 2021.
- Net Loss Before Income Taxes for the six months ended June 30, 2022 was US$1,904,520, compared to a net loss of US$2,463,181 during the same period last year, resulting from improved cost management and operating efficiency while growing the revenue base.
- Second quarter 2022 revenue was US$1.110 million, which represents a seasonal decline in patient visits between the first and second quarter, i.e., the transition from winter months, when a spike in patients visits is typically experienced, to spring months when patient visits decline through the summer months.
- The Company's cash balance was US$355,374 as of June 30, 2022 compared to US$948,662 as of December 31, 2021. Cash was used mainly for working capital to support business operations and growth.
Revenue Growth and Cost Restructuring Plan
The Company continues to build its infrastructure, technology and capability set for the implementation of remote patient monitoring ("RPM"). According to Rembert de Villa, "We aim to help our network providers drive and promote better health outcomes through the combination of RPM and Chronic Care Management ("CCM"), which we have now started to implement."
In addition to the focus on growing the Company's top line, CareSpan is equally-focused on continuing to implement the cost reduction plan initiated in 2021. According to Leslie Markow, Chief Financial Officer, "We are on track with our cost reduction initiatives and are making progress in achieving meaningful savings by the end of the year. We have been very deliberate in prioritizing our spend in improving areas of technology and services that will drive revenue and improve customer satisfaction, while improving operating efficiency and leverage."
Outlook
"CareSpan continues to be in a position to help one of the most pressing issues in U.S. healthcare: the shortage of primary care and the escalating cost of chronic care. Our focus on enabling nurse practitioners and mental health providers with our suite of digital care technology and business services to provide affordable quality care to the underserved continues to bear fruit in the market," said de Rembert de Villa.
About CareSpan Health, Inc.
CareSpan is a healthcare technology and services company. CareSpan, with its head office in British Columbia, is the parent company of the CareSpan group, which holds a 100% interest in its operating subsidiary, CareSpan Holdings, Inc., a Delaware incorporated company.
CareSpan's proprietary 'Clinic-in-the Cloud' is a clinical workflow driven platform designed by doctors that integrates remote patient monitoring, diagnostic tools, the patient's electronic health record, care collaboration capabilities, patient engagement and e-prescribing and lab ordering. CareSpan's platform seamlessly supports both in-person and virtual/telehealth care. CareSpan is using this platform combined with essential business services to build provider networks across the U.S. that deliver primary and chronic care, and urgent care as well as behavioral health care.
Forward-Looking Statements
This news contains "forward-looking statements" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") which reflect the current expectations of management of the company's future growth, results of operations, performance, and business prospects and opportunities, including the statements made above with respect to: (i) the Company's mission of addressing primary care and mental health provider shortages and escalating costs; (ii) building of infrastructure for the implementation of RPM and helping its network providers, including through CCM; (iii) the Company is making progress in cost savings initiatives by the end of the year; and (iv) its technology and services will drive revenue and customer satisfaction. Forward-looking statements are frequently, but not always, identified by words such as "may", "would", "could", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential for", "intend" and similar expressions or the negative of these terms or other comparable terminology, although these words may not be present in all forward-looking statements.
Forward-looking statements are based on management's assumptions as at the date of the forward-looking statements are provided, including but not limited to the following: the ability of the Company to execute its growth plans and business strategies; the ability of the Company to secure new contracts and assignments; the growth of the nurse practioners within CareSpan's network and acquiring patients for its RPM services; and the ability of the Company to generate cost savings and meaningful revenue from such assignments and future engagements. Though management believes that its assumptions are reasonable in the circumstances, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to differ materially from all or any of the future results, performance or achievements expressed or implied by forward-looking statements.
Risk factors that could cause the Company's actual results, performance, or achievements to differ from the forward-looking statements in this news release include, but may not be limited to: general market and economic risk; any necessary regulatory approvals required (if applicable) for the Company to deliver the services under its previous engagements; the ability of the Company's management to execute its strategy; unexpected or adverse regulatory changes in the healthcare space; the ability of the Company to attract and retain new nurse practioners; and the Company's ability to attract new patients for its RPM and CCM services. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CareSpan Health, Inc.
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