HealthLynked Corp (OTC: HLYK), a nationwide healthcare network focused on care management of its members and a provider of healthcare technologies that connect doctors, patients, and medical data, today announced that it has entered into a definitive agreement to acquire Cura Health Management, LLC (CHM) and its wholly-owned subsidiary ACO Health Partners, LLC (AHP). The acquisition cost of $1.75 million was a combination of cash, HealthLynked common stock, and a four-year performance-based earnout.
The announced deal adds more than $2 million in new revenues and cuts cash burn by 50% per year. HealthLynked is reported to be on target to penetrate an expected $47 billion market opportunity. Currently, more than 800,000 healthcare providers in the US, and roughly 7,000 hospitals are part of the HealthLynked network directory. In a recent Yahoo! Finance article on the acquisition, in simplest terms, the HealthLynked Network is a patient-centered medical information exchange designed to bring efficiencies and convenience to patients by connecting users, doctors, and healthcare data. At the core of the HealthLynked Network is an encrypted, cloud-based healthcare network that offers features, resources, and services to both doctors and patients.
The acquisitions of CHM and AHP expand HealthLynked into our newly formed ACO Division and will significantly add to our profitability. CHM provides service contracts to ACOs around the country and AHP is a Jacksonville, Florida based ACO with 75 practitioners who use technology, care coordination, and care management to reduce healthcare costs and improve health outcomes for its Medicare patients. – Michael Dent M.D., HealthLynked’s Chairman, and CEO
With these acquisitions, HealthLynked continues to focus on data-driven healthcare businesses, such as Accountable Care Organizations (ACOs). ACOs seek to reduce healthcare costs and improve health outcomes for Medicare patients using technology, care coordination, and care management, making it a fitting acquisition for HealthLynked. The acquisition of AHP positions HealthLynked to engage in value-based reimbursement programs offered both by CMS and commercial payers. Thanks to advanced machine learning, patient data is driving change at every level in the healthcare industry. But that data is only as beneficial as the information patients are willing to provide. While others have been struggling with patient engagement, HealthLynked has quietly built systems, algorithms, and hardware that will revolutionize the way patients share their data and interact with the healthcare system as a whole.
Unlike medication, there is no single straight path for implementing digital tools..having clarity of scope and a take is incredibly important. A significant advantage of the HealthLynked platform is that it is changing the way patients manage personal health. As noted in the company’s press release last Tuesday, the Cura/AHP acquisition is expected to generate more than $2 million in new revenues, reduce the cash burn by roughly 50% per year, and allow the company to expand its service reach into Accountable Care Organizations in Florida, North Carolina, New Jersey, and Indiana.
About HealthLynked
HealthLynked is poised at the intersection of today’s technology and tomorrow’s innovation. HealthLynked’s mission is to improve healthcare through the efficient exchange of information, with technology that provides medical recommendations to HealthLynked patient members about their specific healthcare needs. The HealthLynked network connects patients to over 800,000 physicians throughout the United States. Users can find detailed information on physicians and their areas of expertise. Physicians can be located by name, specialty, gender, and proximity to the user. Appointments can be made online from either desktop or mobile applications. Other benefits for preferred providers include HLYK marketing tools to connect with their active and inactive patients to improve patient retention, access more accurate and current patient information, provide more efficient online scheduling and to fill last-minute cancelations using “real-time appointment scheduling” all within the mobile application. Preferred providers pay a monthly fee to access these HealthLynked services. For additional information about HealthLynked Corp. visit the HealthyLynked website.
About Cura Health Management CHM
CHM is a healthcare enablement company that empowers local market provider entrepreneurs to own and operate their own Value Service Organizations in a franchise-like model that extends their reach and capabilities to maximize revenue, deliver quality care and improve patient outcomes. CHM’s innovative resources and expert solutions are administered as an extension of providers’ current in-practice resources, expanding care coordination and care management services and value-based analytics. These solutions support financial success within both traditional payment models and expansion to new services, allowing partners to succeed within current and ever-emerging value-based payment models.
About ACO Health Partners AHP
ACO Health Partners is an Accountable Care Organization (ACO), based out of Jacksonville but with providers all over the country, participating in the Medicare Shared Savings Program. AHP was formed to benefit the patients (Medicare Fee-for-Service Beneficiaries), providers and the communities it serves. AHP is built on a model of coordinated care to ensure that patients, especially the chronically ill and the elderly, receive the right care at the right time, avoiding unnecessary duplication of services and prevention of medical errors.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, including as a result of any acquisitions, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by our management, and us are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Certain risks and uncertainties applicable to our operations and us are described in the “Risk Factors” section of our most recent Annual Report on Form 10-K and in other filings we have made with the U.S. Securities and Exchange Commission. These reports are available at http://www.sec.gov.
