Skylight Health Provides Corporate Update and Strategic Priorities
10 February 2023 - 12:00AM
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
Kellyinvestors@skylighthealthgroup.com416-301-2949
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.
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