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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."
Outlook
"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
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 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.
Related Links
https://www.carespanhealth.com
SOURCE CareSpan Health, Inc.