Assure Sets Record for Cash Collection and Procedures in Full-Year, Fourth Quarter 2020
January 11 2021 - 7:30AM
Assure Holdings Corp. (the “
Company” or
“
Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of
intraoperative neuromonitoring services (“
IONM”),
announced an annual and quarterly record for cash collection and
number of procedures in full-year and fourth quarter 2020.
John A. Farlinger, executive chairman and CEO
said, “I am proud of the progress our billing and collections team
has made and the success we have had in meeting our objectives in
2020. Since fully taking over the revenue cycle management function
in February 2020 after our legacy 3rd party billing provider was
terminated due to poor performance, Assure invested heavily in this
area by hiring a seasoned leader, staffing a 20-person internal
billing and collections team and migrating to a platform that has
an automated and integrated process, transitioning from what had
historically been an entirely manual system.”
Results and expectations relating to billing and
collections include:
- The Company
collected a record $23.9 million in full-year 2020. This included a
record $6.5 million in the fourth quarter of 2020. Comparitively,
in 2019, full-year cash collections was $15.9 million, including
$2.4 million in the fourth quarter. The revenue figures referenced
relate to a combination of technical IONM services and cash
collected from Provider Network Entities (“PNEs”) for professional
IONM services.
- For revenue
related to technical IONM services only and excluding cash
collected from PNEs for professional IONM services, which are
recorded separately, the Company collected a record $13.8 million
in full-year 2020. This included $3.7 million in the fourth quarter
of 2020. Comparitively, in 2019, full-year cash collections was
$8.0 million, including $1.3 million in the fourth quarter.
- Strong billing
and collections have made the Company operationally cash flow
positive for the period of March through December 2020.
- Assure’s 2020
cash collections include over $1.2 million from 2016 and 2017
receivables. This will be categorized as new revenue and income in
2020, as these amounts had previously been reserved and
written-off.
- Based upon
recent discussions with various insurance providers, Assure expects
to continue the strong trend of collections in 2021.
Farlinger continued, “Partnering with insurance
companies via in-network agreements will help Assure deliver better
and more predictable results with less volatility. Looking into
2021, we do not anticipate significant volatility with respect to
our revenue accrual per procedure given that both our existing
in-network contracts and those we are currently negotiating, are
comparable to our current accrual rates. This will continue to be a
focus for Assure during 2021 as we attempt to migrate more and more
revenue into agreements with insurance companies.”
Assure has a policy of reserving open claims
when aged two years and netting these write-downs against current
quarter revenue. The Company is continuing collection efforts on
2018 receivables reserved in 2020 and is confident that a share of
these claims that are reserved will ultimately be recovered.
Company Reports Record Number of
ProceduresFarlinger concluded, “The Company reported our
highest number of procedures in the full-year period, the fourth
quarter and the month of December 2020. In full-year 2020, Assure
performed over 9,900 cases, including more than 3,000 in the fourth
quarter and over 1,100 in the month of December. Comparatively, in
2019, we performed over 6,400 procedures during the full year, more
than 2,200 in the fourth quarter and nearly 900 in December 2019.
Although we continue to be impacted by COVID-19, and acknowledge
that the pandemic has slowed our expansion efforts in certain
markets, Assure is pleased to have grown its total procedures by
more than 54% in 2020. We continue to expect to grow our case
volume by at least 40% in 2021.”
The Company anticipates that the majority of the
procedures postponed in 2020 will ultimately be rescheduled.
About Assure HoldingsAssure
Holdings Corp. is a Colorado-based company that works with
neurosurgeons and orthopedic spine surgeons to provide a turnkey
suite of services that support intraoperative neuromonitoring
activities during invasive surgeries. Assure employs its own staff
of technologists and uses its own state-of-the-art monitoring
equipment, handles 100% of intraoperative neuromonitoring
scheduling and setup, and bills for all technical services
provided. Assure Neuromonitoring is recognized as providing the
highest level of patient care in the industry and has earned The
Joint Commission’s Gold Seal of Approval®. For more information,
visit the company’s website
at www.assureneuromonitoring.com.
Non-IFRS MeasuresThis press
release includes certain measures which have not been prepared in
accordance with International Financial Reporting Standards
(“IFRS”) such as monthly procedures performed. The
non-IFRS measures presented are unlikely to be comparable to
similar measures presented by other issuers. References to monthly
procedures performed are monitored by the Company. None of the
foregoing non-IFRS measures is an earnings measure recognized by
IFRS and do not have a standardized meaning prescribed by IFRS.
Management believes that monthly procedures performed is an
appropriate measure in evaluating the Company’s performance.
Readers are cautioned that monthly procedures performed should not
be construed as alternatives to net income (as determined under
IFRS), as indicators of financial performance or to cash flow from
operating activities (as determined under IFRS) or as measures of
liquidity and cash flow.
Forward-Looking Statements This
news release may contain “forward-looking statements” within the
meaning of applicable securities laws, including, but not limited
to comments with respect to: strategies; expectations; planned
operations; the number of procedures monitored by the Company; the
Company’s number of monthly procedures performed by the Company;
the demand for the Company’s IONM services; the impact of COVID-19
on the Company’s operations; the Company’s collections process; the
Company’s growth in terms of case volume; the Company’s existing
and potential in-network contracts and the effects of partnering
with insurance companies and the Company’s ability to collect past
receivables. .. Forward-looking statements may generally be
identified by the use of the words "anticipates," "expects,"
"intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," or "continue" and
variations or similar expressions. These statements are based upon
the current expectations and beliefs of management and are subject
to certain risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not
limited to: Assure may not maintain its strong trend of collections
in 2021;the uncertainty surrounding the spread of COVID-19 and the
impact it will have on the Company’s operations and economic
activity in general; the Company’s case volume may not grow by 40%
in 2021; the Company’s procedures that were postponed in 2020 may
not be rescheduled; the Company may not continue to be a leader in
the IONM industry; the Company may not be able to collect its
receivables from 2018; partnering with insurance companies via
in-network agreements may not help the Company better and more
predictable results with less volatility; volatility levels
regarding the Company’s revenue accrual per procedure may increase
in 2021; the Company may not successfully add additional in-network
contracts and the risks and uncertainties discussed in our most
recent annual and quarterly reports filed with the Canadian
securities regulators and available on the Company’s profile on
SEDAR at www.sedar.com, which risks and uncertainties are
incorporated herein by reference. Readers are cautioned not to
place undue reliance on forward-looking statements. Except as
required by law, Assure does not intend, and undertakes no
obligation, to update any forward-looking statements to reflect, in
particular, new information or future events.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
ContactScott Kozak, Investor and Media
RelationsAssure Holdings
Corp.1-720-287-3093Scott.Kozak@assureiom.com
John Farlinger, Chief Executive OfficerAssure Holdings
Corp.1-604-763-7565John.Farlinger@assureiom.com
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