MSP Recovery, LLC (“MSP Recovery” or “MSPR”), a Medicare,
Medicaid, commercial, and secondary payer reimbursement recovery
leader, and Lionheart Acquisition Corporation II, a Delaware
corporation (Nasdaq: LCAPU, LCAP, LCAPW, “Lionheart” or “LCAP”),
today announced substantial business expansion through development
of additional revenue stream, monetization of assignor interests,
growth of assignors and existing business, and continued
innovation.
Founded in 2014 by John H. Ruiz, MSP Recovery is an industry
pioneer in obtaining reimbursements for Medicare, Medicaid,
commercial insurance, and other healthcare entities from parties
which should have paid the claims in the first place. MSPR acquires
the assignments of these recoveries from health insurance payors,
healthcare providers and self-funded entities, and uses its
proprietary multi-level data analytics system to secure recoveries
from responsible parties. MSPR typically pays the assignors 50% of
such recoveries (the “Assignor Interest”) and retains the rest (the
“MSPR Recovery Proceeds”).
On July 12, 2021, after 7 years of pioneering and significant
legal victories in the industry, MSPR announced a business
combination (“Business Combination”) with Lionheart Acquisition
Corp II, based on an enterprise value of the combined company of
approximately $32.5 billion. The $32.5 billion valuation was based
on projected MSPR Recovery Proceeds. Since July 2021, however, MSPR
has been developing additional revenue streams.
Among the new potential sources of revenue, on September 30,
2021 MSPR announced an agreement providing for potential future
transactions to monetize up to $3 billion of select healthcare
claims recovery interests to Virage Capital Management LP
(“Virage”). The Virage agreement presents an opportunity for MSPR
to monetize the Assignor Interests (typically 50% of the total
recovery amount) associated with select healthcare recovery claims,
while preserving MSPR’s interests in the MSPR Recovery Proceeds.
Indeed, MSPR has already reached an agreement to monetize an
initial $275 million under the Virage agreement earmarked for
acquisition of Assignor Interests. This additional recovery
opportunity provides an additional potential avenue for MSPR to
expand its revenue streams.
MSPR has several additional new and expanding revenue streams,
including but not limited to:
- MSPR’s expansion into representing states and attorneys general
in pursuing recoveries for improper Medicaid payments.
- On January 10, 2022, LifeWallet Powered by MSP Recovery was
launched. LifeWallet is a consumer application designed to help
save lives, by facilitating first responders and healthcare
providers to enable informed decision-making and provide improved
patient care. LifeWallet has been created with high security
standards, and the private information is protected on a HIPAA
compliant platform.
- LifeWallet has also entered into agreements with dozens of
collegiate athletes in multiple countries through “name image and
likeness” (NIL) contracts, revolutionizing college sports,
capturing the medical information of young athletes to help improve
their medical care and patient outcomes, and creating significant
marketing opportunities for these athletes to promote this new line
of business. These international spokespersons and marketing
strategies will be important as LifeWallet will be able to work in
every country that utilizes the ICD-10 coding system which is being
implemented by World Health Organization (WHO) member states.
Approximately 27 countries use ICD-10 for reimbursement and
resource allocation in their health system, and some have made
modifications to ICD to better accommodate its utility. The
unchanged international version of ICD-10 is used in 117 countries
for performing cause of death reporting and statistics.
- LifeWallet is also part of MSP Recovery’s Chase to Pay
platform, providing real-time analytics at the point of care,
helping identify the primary insurer, assisting providers in
receiving reasonable and customary rates for accident-related
treatment, shortening MSP’s collection time frame, and increasing
revenue visibility and predictability.
- The development of LifeChain – a blockchain verified healthcare
claims tokenization platform protected by biometric security.
Medical claims and records will be received and processed through
LifeChain enabling efficient delivery of healthcare information.
MSPR sees substantial business expansion through blockchain
incorporated into LifeWallet which brings providers, patients, and
payers into one ecosystem.
In addition to these new revenue streams, MSPR has continued to
grow its primary business. As of December 31, 2021, MSPR’s
portfolio included more than $1.5 trillion in billed amount
(reflecting the full amount billed by a provider to a health plan
or insurer), up more than 530% from $242 billion in 2020. MSPR’s
portfolio included $364.4 billion in paid amount as of the same
date (reflecting amounts actually paid to a provider from a health
plan), up more than 520% from $58.4 billion in 2020. And since
announcing the Business Combination in July 2021, MSPR has seen a
significant increase in interest from various entities in the
healthcare industry. During that time period alone, MSPR has:
vetted 91 prospects; made proposals to 48 entities; conducted data
diligence on 46 entities; generated a data evaluation report for 21
entities; and negotiated initial agreements with 20 entities. MSPR
already has over 150 assignors, and continues to grow its number of
assignors.
MSPR has also seen continued growth by way of the addition of
data and assignments from university healthcare and hospital
systems, as well as the expansion of assignments from significant
self-funded healthcare plans that pay for their own claims. For
example, MSPR recently entered into an assignment agreement with
MasTec, Inc., the second largest Hispanic-owned company in the
United States with over 20,000 employees in North America. MasTec
companies have been involved in some of the largest and most
complex infrastructure construction projects across the country and
with such a large pool of employees across the country has paid
significant numbers of claims across the country that should have
been reimbursed.
“We continue experiencing substantial growth of our billed
amounts, assigned claims and estimated paid amounts thanks to the
growing recognition by healthcare providers and payers of our
sophisticated and industry-leading legal, technological, and data
expertise relating to pursuing recoveries on their behalf,” said
MSP Recovery Founder and CEO, John H. Ruiz.
MSPR’s substantial growth figures in paid amounts and billed
amounts are even more significant in light of recently announced
strategic alliances and progress towards the settlement of no-fault
litigation, wherein various liability insurers have formally agreed
to a framework to exchange data – out of court – in pursuit of a
full settlement of current no-fault litigation.
“There is a growing recognition among healthcare providers and
payers of the value of MSP Recovery’s innovative and effective
identification and pursuit of reimbursement recoveries on their
behalf, said Ophir Sternberg, Chairman and CEO of Lionheart. “MSP
Recovery’s ability to identify, pursue and secure new revenue
streams, incremental to the original business combination forecast,
provides significant upside to LCAP shareholders,” added
Sternberg.
MSPR expects significant continued growth as it continues
expanding its lines of business and the scale of its existing
business.
“We will continue to innovate and revolutionize the healthcare
industry and bring all resources at MSP Recovery’s disposal to bear
on solving these issues that have plagued the healthcare industry
for years,” said Ruiz.
MSP Recovery’s Historical Overview as of
Business Combination Announcement.
- Jul 12, 2021 - Lionheart Acquisition Corp. II Announces
Business Combination With MSP Recovery, a Leader in Data-Driven
Solutions, Recovering Improperly Paid Benefits on Behalf of
Medicare, Medicaid and Commercial Payers
- One of the top three largest SPAC transactions announced to
date.
- MSPR’s data-driven solutions discover improperly paid claims
out of the $3.6 trillion paid by healthcare payers yearly, and
pursues them against primary payers and responsible parties.
- Aug 12, 2021 - MSP Recovery Scores Major Victory in
Court Ruling Against IDS Property Casualty
- Ruling certifies a class action, enters judgment for entire
class and sanctions IDS for willfully violating court’s order.
- Ruling also confirms effectiveness of MSP Recovery’s systems
and data analytics in identifying that IDS, the defendant and a
Primary Payer, failed to report its Primary Payer obligations to
the government.
- Aug 18, 2021 - MSP Recovery Files Whistleblower Lawsuit
Against 315 Auto Insurers
- MSP Recovery’s qui tam complaint seeks to recover billions of
dollars for claims auto insurers should have paid but didn’t.
- Defendants include related entities of insurance groups Auto
Club Enterprises Insurance Group, Auto Owners Group, Berkshire
Hathaway Group, CSAA Insurance Group, Erie Insurance Group, Farmers
Insurance Group, Kemper Corporation Group, Liberty Mutual Group,
National General Group, Nationwide Corporation Group, Progressive
Group, State Farm Group, Travelers Group and United Services
Automobile Association Group.
- Sep 30, 2021 - MSP Recovery Enters into $3 Billion
Agreement to Sell Select Healthcare Claims Recoveries to Virage
Capital Management, an Anticipated New Source of Revenue for MSP
- Transaction to include assignments from healthcare insurance
payors, healthcare providers and self-funded entities.
- Oct 11, 2021 - MSP Recovery and Palantir Partner to
Transform Connectivity Across the U.S. Healthcare System
- A partnership to transform legal, data, and healthcare delivery
into one united ecosystem. MSP will provide the detailed underlying
legal, data and healthcare knowledge, utilizing Palantir Foundry as
the foundation of the data ecosystem.
- Oct 14, 2021 - MSP Recovery Announces Several New
Partnerships
- Synnova Health partnership is anticipated to improve MSP
Recovery’s platform by expanding its capabilities and maximizing
its efficiency, thereby improving outcomes for healthcare providers
and insurance carriers, among others.
- Tokenology partnership to combine blockchain-centric financial
technology with MSP Recovery’s strong data analytics platform. This
partnership will fuel a fully tokenized Medicare, Medicaid and
commercial recovery platform, leveraging the best-in-class
strategies and resources to provide secure and efficient blockchain
solutions.
- SirenMD partnership is anticipated to enable easier and more
efficient access to critical information to gain a better
understanding of patients’ health history, provide more accurate
diagnoses, and lead to improved care and treatment
- Nov 11, 2021 - Lionheart Acquisition Corporation II
Files a Registration Statement on Form S-4 in Connection with
Proposed Business Combination with MSP Recovery, LLC
- Jan 10, 2022 - MSP Recovery, LLC Announces Launch of
LifeWallet
- LifeWallet empowers people to take control of their health by
giving first responders and healthcare providers easy access to
medical and prescription information.
- Jan 25, 2022 - MSP Recovery’s Portfolio of Assigned
Claims Grows by Over 440%, From $61 Billion to an Estimated $330
Billion in Paid Amount
- Jan 31, 2022 - MSP Recovery’s LifeWallet Announces Data
of More than 1 Million Patients Uploaded to Platform Less Than a
Month Since Launch
- LifeWallet Powered by MSP Recovery now available in Apple’s
AppStore.
- LifeWallet continues to expand its roster of collegiate
athletes with NIL contracts.
- April 18, 2022 - MSP Recovery Announces Significant
Progress Towards Settlements and Strategic Alliance With Law Firms
Milberg Coleman Bryson Phillips Grossman, PLLC and Rivero Mestre,
LLP.
- MSP Recovery’s alliance with the two law firms represents more
than 65 new lawyers who may assist in MSP Recovery’s recovery
efforts.
- Each firm is committing significant resources to litigating
more reimbursement recovery cases for MSP Recovery.
- May 3, 2022 - MSP Recovery and Lionheart Acquisition
Corporation II Announce Effectiveness of Registration
Statement
- May 10, 2022 - Lionheart Acquisition Corporation II
Declares Special Dividend in the Form of New Warrants
- Lionheart Acquisition Corporation II announced that its Board
of Directors has declared a dividend in the form of approximately
1,029,000,000 warrants (the “New Warrants”), each to purchase one
share of the Company's Class A Common Stock at $11.50 per share.
The issuance of the New Warrant dividend is conditioned upon the
closing (the “Closing”) of the previously announced proposed
business combination with MSP Recovery, LLC (the “Business
Combination”), pursuant to the Membership Interest Purchase
Agreement (as amended, the “MIPA”) by and among the Company,
Lionheart II Holdings, LLC, the MSP Purchased Companies (as defined
in the MIPA) (collectively, “MSP”), the members of MSP (the
“Members”), and John H. Ruiz, in his capacity as the representative
of the Members
MSP Recovery previously announced a business combination with
Lionheart Acquisition Corporation II (Nasdaq: LCAPU, LCAP, LCAPW,
“Lionheart” or “LCAP”). LCAP will hold a special meeting of
stockholders (the “Special Meeting”) at 11:00 a.m. Eastern Time on
May 18, 2022 to approve, among other things, the Business
Combination with MSP Recovery. Stockholders of record at the close
of business on April 18, 2022 are entitled to receive notice of and
to vote at the Special Meeting. Subject to the satisfaction or
waiver of closing conditions, closing is anticipated for May 20,
2022.
The shares of Class A Common Stock of the combined company are
anticipated to continue to be traded on Nasdaq under the symbol
“MSPR” following the Closing. The combined company’s public
warrants are anticipated to continue to be traded on Nasdaq under
the symbol “LCAPW”, and the new warrants issued in connection with
the previously announced and declared LCAP dividend are anticipated
to commence trading on Nasdaq under the symbol “MSPRW” when
issued.
About MSP Recovery
Founded in 2014, MSP Recovery has become a Medicare, Medicaid,
commercial, and secondary payer reimbursement recovery leader,
disrupting the antiquated healthcare reimbursement system with
data-driven solutions to secure recoveries against responsible
parties. MSP Recovery provides the healthcare industry with
comprehensive compliance solutions, while innovating technologies
to help save lives. For more information, visit:
www.msprecovery.com
About Lionheart Acquisition Corporation II
Lionheart Acquisition Corporation II is a blank check company
formed for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. For more
information, visit: www.LCAP2.com.
No Offer or Solicitation
No offer or offering of equity interests or securities of any
kind is being made, conducted or extended at this time. This
communication is for informational purposes only and does not
constitute or include an offer to sell, or a solicitation of an
offer to purchase or subscribe for, equity interests or securities
of any kind or a solicitation of any vote of approval, nor shall
there be any sale, issuance or transfer of any such securities in
any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction. Any such offer or
solicitation will be made only in connection with the delivery of a
prospectus meeting the requirements of the Securities Act of 1933,
as amended (“Securities Act”), or exemptions therefrom.
Important Information and Where to Find It
In connection with the Business Combination, LCAP has filed the
a Form S-4 with the SEC (the “Registration Statement”), which
includes a preliminary proxy statement/prospectus of LCAP. This
document does not contain all the information that should be
considered concerning the Business Combination and is not intended
to form the basis of any investment decision or any other decision
in respect of the Business Combination. The Registration Statement
was declared effective by the SEC on May 2, 2022, the definitive
proxy statement/prospectus was filed with the SEC on May 3, 2022
and has been mailed to the stockholders of LCAP as of April 18,
2022, the record date established for voting on the Business
Combination. SECURITYHOLDERS OF LCAP ARE URGED TO READ THE
REGISTRATION STATEMENT, THE DEFINITIVE PROXY STATEMENT/PROSPECTUS
(INCLUDING ALL EXHIBITS AND SUPPLEMENTS THERETO) AND OTHER
DOCUMENTS AND RELEVANT MATERIALS RELATING TO THE BUSINESS
COMBINATION FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY
BEFORE MAKING ANY VOTING DECISION WITH RESPECT TO THE BUSINESS
COMBINATION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE
BUSINESS COMBINATION AND THE PARTIES TO THE PROPOSED BUSINESS
COMBINATION. LCAP’s stockholders are able to obtain copies of such
documents, without charge, at the SEC’s website at www.sec.gov, or
by directing a request to: Lionheart Acquisition Corporation II,
4218 NE 2nd Avenue, Miami, Florida 33137.
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN
APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY
AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS
OF THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED
THEREIN.
Participants in the Solicitation of Proxies
This communication is not a solicitation of a proxy from any
investor or securityholder. LCAP, MSP, and their respective
directors, executive officers and other members of their management
and employees, including Ophir Sternberg, John Ruiz and Frank
Quesada, may, under SEC rules, be deemed to be participants in the
solicitation of proxies of LCAP’s stockholders in connection with
the Business Combination. Investors and securityholders may obtain
more detailed information regarding the names, affiliations and
interests of LCAP’s directors and executive officers in LCAP’s
Annual Report on Form 10-K/A filed with the SEC on April 7, 2022,
as amended, the proxy statement/prospectus, other relevant
materials filed with the SEC in connection with the Business
Combination when they become available, and other reports filed
with the SEC. These documents can be obtained free of charge from
the sources indicated above.
Cautionary Note Regarding Forward Looking Statements
This communication includes forward looking statements within
the meaning of the safe harbor from civil liability provided for
such statements by the Private Securities Litigation Reform Act of
1995 (set forth in Section 21E of the Securities Exchange Act of
1934, as amended (“Exchange Act”) and Section 27A of the Securities
Act, which include information relating to future events, future
financial performance, strategies, expectations, competitive
environment, regulation and availability of resources and involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements to be
materially different from any future results, performances or
achievements expressed or implied by the forward-looking
statements. These statements are often accompanied with or by words
such as “expects”, “plans”, “ projects”,” forecasts”,” estimates”,”
intends”, “expects”, “anticipates”, “seeks”, “ targets”,
“continues”, “ believes”, “opinion”, “will”, “could”, “future”,
“growth”, or “may” (or the negatives thereof) or other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These forward
looking statements include, but are not limited to, statements
regarding MSP’s plans, goals and objectives, forecasts, budgets or
projections and any related assumptions and statements and the
implied enterprise value and MSP’s expectations with respect to
future performance. There is no guarantee that prospects or results
or the timing of events included or referred to in this
communication, including the continued utilization of LifeWallet,
or that it will save lives, will be achieved or that MSP will be
able to implement successfully its investment strategy or achieve
its investment objectives or return targets. Accordingly, we
caution you against relying on forward-looking statements. Forward
looking statements also are subject to a number of significant
risks and uncertainties that could cause the actual results to
differ materially, and potentially adversely, from those express or
implied in the forward-looking statements. These statements are
based on various assumptions, whether or not identified in this
communication, and on the current expectations of management and
are not predictions of actual performance. Actual events and
circumstances are difficult or impossible to predict and may differ
from assumptions, and such differences may be material. Many actual
events and circumstances are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
and are beyond the control of MSP and are difficult to predict.
These forward-looking statements are provided for illustrative
purposes only and are not intended to serve as, and must not be
relied on by any investor as, a guarantee, an assurance, a
prediction or a definitive statement of fact or probability.
Factors that may cause such differences include, but are not
limited to, operating costs and future business, investment,
holding and sale decisions and costs; the risks that the
anticipated benefits of the launch and adoption of LifeWallet are
not realized or are delayed; the risks associated with MSP’s
business, including, among others, MSP’s ability to capitalize on
its assignment agreements and recover monies that were paid by the
assignors; litigation results; the validity of the assignments of
claims to MSP; a determination that MSP’s claims are not
reasonable, related or necessary; the failure of MSP’s clients to
renew their agreements with MSP (or terminate those agreements
early); MSP’s claims being within applicable statutes of
limitations; the inability to successfully expand the scope of
MSP’s claims or obtain new data and claims from MSP’s existing
assignor base or otherwise; the limited number of MSP’s assignors
and the associated concentration of MSP’s current and future
potential revenue; internal improvements to claims and retail
billing processes by MSP’s clients that reduce the need for and
revenue generated by MSP’s products and services; healthcare
spending fluctuations; programmatic changes to the scope of
benefits and limitations to payment integrity initiatives that
reduce the need for MSP’s services; delays in implementing MSP’s
services to its claims; system interruptions or failures;
cyber-security breaches and other disruptions that could compromise
MSP’s data; MSP’s failure to maintain or upgrade its operational
platforms; MSP’s failure to innovate and develop new solutions, or
the failure of those solutions to be adopted by MSP’s existing and
potential assignors; MSP’s failure to comply with applicable
privacy, security and data laws, regulations and standards,
including with respect to third party providers; changes in
legislation related to healthcare programs and policies; changes in
the healthcare market; negative publicity concerning healthcare
data analytics and payment accuracy; competition; successfully
protecting MSP’s intellectual property rights; the risk that third
parties may allege infringement of their intellectual property;
changes in the healthcare regulatory environment and the failure to
comply with applicable laws and regulations or the increased costs
associated with any such compliance; failure to manage MSP’s
growth; the inability to attract and retain key personnel; MSP’s
reliance on its senior management team and key employees and the
loss it could sustain if any of those employees separated from the
business; the failure of vendors and providers to deliver or
perform as expected, or the loss of such vendors or providers;
MSP’s geographic concentration; MSP’s relatively limited operating
history, which makes it difficult to evaluate its current or future
business prospects; the impact of the ongoing COVID-19 pandemic;
and the risk that MSP may not be able to develop and maintain
effective internal controls. The foregoing list of factors is not
exhaustive. If any of these risks materialize or MSP’s assumptions
prove incorrect, actual results may differ materiality from the
results implied by these forward-looking statements. There may be
additional risks that we do not presently know or currently believe
are immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. The foregoing
list of factors is not exclusive. This communication speaks only as
of the date indicated, and the statements, expressions, information
and data included therein may change and may become stale,
out-of-date or no longer applicable. We do not have, and do not
undertake, any obligation to update, amend or revise this
communication (or to provide new, amended or revised materials),
including with respect to any forward-looking statements, whether
as a result of new information, future events, changed plans or
circumstances or any other reason, except as required by law. The
communication should not be relied upon as representing our
assessments as of any date subsequent to the date of this
communication. Accordingly, undue reliance should not be placed
upon the communication, including the forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220517005815/en/
For Media: ICR, Inc. MSP@icrinc.com
For Investors: ICR, Inc. Marc Griffin
Marc.Griffin@icrinc.com
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