CARESPAN ACHIEVES 60% REVENUE GROWTH AND RECORD REVENUES IN Q1/22 WITH ITS CONTINUED FOCUS ON ENABLING NURSE PRACTITIONERS WITH DIGITAL CARE TECHNOLOGY
VANCOUVER, BC , May 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 months ended March 31 , 2022. Unless otherwise stated, all amounts disclosed herein are in U.S. dollars.
“CareSpan delivered strong revenue growth for Q1. Our growth in revenues and patient visits is a testament to our business model, “Clinic-in-Cloud” platform, and our team,” said Rembert de Villa , CareSpan’s CEO. “We continue to be focused on our mission to tackle the widening primary care and mental health provider shortage and the escalating cost of chronic care through our unique focus on enabling quality affordable access through Nurse Practitioners as well clinicians in behavioral health. I am pleased by our ability to deliver solid growth, while managing our cost structure and building capabilities to support long-term growth.”
- Revenues of US$1.765 million for Q1-2022 compared to US$1.105 million for Q1-2021 an increase of 60% that was primarily driven by an 80% jump in patient visits.
- The number of providers in our networks more than doubled to 103 practitioners as of March 30, 2022 , from 50 compared to a year ago.
- Continued to manage the cost structure, operating loss was reduced to US$(0.671) million in Q1 2022 from US$(2.022) million in Q1 2021.
- Focused on the implementation of the Remote Patient Monitoring (“RPM”) program that launched in March 2022 as a value-added service, and is targeting to enroll approximately 2,000 patients within its current patient base, for whom RPM would be a key component of their respective plan to manage chronic illness. The anticipated reimbursement under RPM is in the range of US$100 to US$115 per patient per month.
First Quarter 2022 Financial Highlights
- First quarter 2022 revenues were $1.765 million , which represents a 60% increase from the $1.105 million in revenues for the first quarter of 2021 as patients’ visits increased to 13,763 in Q1-2022 from 7,627 in Q1-2021.
- The Company’s cash balance was $352,883 as of March 31, 2022 compared to $948,662 at December 31, 2021 . This does not include the impact of the non-brokered private placement of common shares of the Company raising gross proceeds of CDN$1,185,000 , which closed subsequent to quarter end on April 13, 2022 .
Revenue Growth and Cost Restructuring Plan
The Company announced the launch of its RPM services on March 3, 2022 and is focused on its implementation. 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.”
“While we continue to focus on growing our top line, we are equally focused on continuing to implement the cost reduction plan initiated in 2021 that will see the Company generate about $1,000,000 in annualized savings. We believe that this adjustment in our cost structure is an important step to get us on a path to achieve positive cash flow from operations”, said Leslie Markow , Chief Financial Officer. “We have been very deliberate in prioritizing our spend in improving areas of technology and services that will drive revenue and increased customer satisfaction.”
“CareSpan has positioned itself to address a significant problem in the U.S. healthcare system: the shortage of primary care and the escalating cost of chronic care. Nurse Practitioners are being recognized by more and more states as an important solution to this problem and CareSpan is one of the few companies to have designed its ‘Clinic-in-the-Cloud’ offering to equip Nurse Practitioners and other clinicians with cost-effective, integrated digital tools necessary to deliver the best care”, said 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.
ON BEHALF OF THE BOARD OF DIRECTORS:
Rembert de Villa
Chief Executive Officer
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 tackling primary care and mental health provider shortages and the escalating costs of chronic care; (ii) the Company targeting patients for its RPM; (iii) the aim of the Company to help network providers through its RPM and Chronic Care Management programs; (iv) prioritizing spending to improve areas of technology and services to drive revenue and customer satisfaction; and (vi) the Company being in a position to address an enormous problem with the U.S. healthcare system and CareSpan using its Nurse Practitioner business model to contribute to the solution. 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; acquiring patients for its RPM services; and the ability of the Company to generate meaningful revenue from such assignments and future engagements and to execute its cost reduction plan. 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; and the Company’s ability to attract new patients for its RPM 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.