TORONTO, Feb. 09, 2023 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (TSXV:SLHG; OTCQX: SLHGF) (“Skylight Health” or the “Company”), a healthcare platform combining technology and analytics focused on transitioning patients into value based care to drive better health outcomes and experiences in the United States, is pleased to provide the following business updates and strategic priorities.
Value-Based Care: First Full Year Contribution
- 2023 marks the first year of the Company’s participation in the ACO Reach program through its joint venture with Centene/Collaborative Health Systems (CHS). As part of this participation, the Company’s traditional aligned Medicare members will move into a capitated full risk model similar to its current Medicare Advantage (MA) at risk programs in Florida.
- The Company will receive improved funding through the program to support its members with additional resources to support their care including care coordination, community support and improved access.
Value-Based Care: Membership Growth
- Based on exit 2022 estimates, the Company has enrolled 849 traditional Medicare members into the ACO Reach Along with its MA at risk members both through owned and affiliate practices, this brings the total membership at risk to 3,736.
- The Company expects that growth in 2023 will come organically from new membership, new plans and improved performance against current benchmarks. The Company has already seen efforts in areas of patient care coordination and accurate coding leading to positive savings and revenue growth trends for 2023.
Electronic Health Record Roll-Out
- Skylight has also begun the rollout of Athena, the electronic health record (EHR) platform chosen by the Company for a national standard across its practices, in the NeighborMD (NMD) practices. This is the last remaining group to join the centralized system.
- This will provide a significant opportunity to scale costs, improve on revenue cycle and collections, as well as insights into the business to optimize on patient care and practice performance.
Financial Improvements
- Skylight continues to work through its rigorous turnaround plan initiated in early 2022. Efforts made in 2022, have positively impacted adjusted EBITDA with previously reported results in Q3, 2022 to show an improvement of approximately 68%.
- The Company expects to continue positively impacting this trend through 2023 and is working towards adjusted EBITDA profitability in 2023.
- The Company acknowledges the challenging market conditions and limited cash availability and is committed to prioritizing profitability through continued efforts in cost savings, revenue growth, cash management and restructuring efforts.
Prad Sekar, CEO and Co-Founder of Skylight Health, stated, “Since initiating Skylight’s comprehensive turnaround plan at the beginning of 2022, which included financial actions to improve our balance sheet and cash flows, we have been working to evaluate all paths to enhance liquidity, and our stated priorities. While the task has not been an easy one, we are committed to continuing to do what is required to navigate this difficult macroeconomic backdrop, and build towards growing long-term shareholder value. It is validating to see that a lot of our efforts in 2022 have started to show positive trends going into 2023.”
Series A Preferred Stock Cash Dividend and Share issuance
The Board of Directors of the Company has authorized, and the Company has declared, a dividend on its 9.25% Series A Cumulative Redeemable Perpetual Preferred Shares (the “Series A Preferred Shares”) for the month of March 2023. The Series A Preferred Shares trade under the “SLHGP” stock ticker symbol. In accordance with the terms of the Series A Preferred Shares, the Series A dividend will be payable in cash in the amount of $0.1927 per share on March 20, 2023 to the shareholders of record of the Series A Preferred Stock as of the dividend record date of February 28, 2023.
About Skylight Health Group
Skylight Health Group (TSXV:SLHG; OTCQX:SLHGF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state primary care health network comprised of physical practices providing a range of services from primary care, sub-specialty, allied health, and laboratory/diagnostic testing. The Company is focused on helping small and independent practices shift from a traditional fee-for-service (“FFS”) model to value-based care (“VBC”) through tools including proprietary technology, data analytics and infrastructure. In an FFS model, payors (commercial and government insurers) reimburse on an encounter-based approach. This puts a focus on the volume of patients per day. In a VBC model, the providers offer care that is aimed at keeping patients healthy and minimizing unnecessary health expenditures that are not proven to maintain the patient’s well-being. This places emphasis on quality over volume. VBC will lead to improved patient outcomes, reduced cost of delivery and drive stronger financial performance from existing practices.
Forward Looking Statements
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent our current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as "look forward," "believe," "continue," "building," or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings we make with the Canadian securities regulators and Canadian Securities Administrators, available at www.sedar.com, and on our website, at skylighthealthgroup.com.
For more information, please visit our website or contact:
Investor Relations:
Jackie Kelly
investors@skylighthealthgroup.com
416-301-2949
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.
