CloudMD Continues U.S. Expansion with Acquisition of U.S. Based Chronic Care Medical Clinic
CloudMD will implement its telehealth technology across clinic network
- Digital healthcare and telemedicine are the great equalizer for healthcare delivery; demand is surging and part of the new normal.
- The U.S. recently has made swift policy changes that provide expanded access to high quality healthcare through telehealth.
- CloudMD is acquiring its first U.S. chronic care focused medical clinic as part of a comprehensive strategy to provide end-to-end health care services for complex care patients.
- CloudMD’s management partner in the clinic has over 30 years of experience in the US healthcare market and working with complex care patients.
- CloudMD’s suite of telehealth products will be used at the clinic to provide continuity of care that covers primary care, mental health and complex care.
- According to the CDC, 90% of the US $3.5 Trillion spent annually on healthcare is spent on people with chronic mental health diseases.
Vancouver, BC, August 6, 2020 - CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telehealth company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has entered into a binding agreement to acquire 100% of a U.S. based medical clinic serving chronic care patients as a part of its broader strategy for entering the U.S. market with its comprehensive suite of telehealth products.
The acquisition is an important and strategic part of CloudMD’s cross-border expansion plan into the United States. One of the key goals for CloudMD with this acquisition is to start providing a single comprehensive stop for longitudinal healthcare for chronic and complex care patients in the U.S. These patients often have multiple concurrent diseases such as diabetes, hypertension, vascular and heart disease. The opportunity for expansion with this acquisition is significant, as in the U.S alone, 90% of the $3.5 Trillion spent annually on health care is spent on chronic pain and mental health issues (Source: CDC). CloudMD’s integrated telehealth technology will be used in the clinic practice to provide patient centric, continuity of care.
The clinic is managed by Dr. Fred Roh and Curtis Gibson. Dr. Roh has over 30 years’ experience in the U.S healthcare market having been founder of Healthcare Networks of America, LLC, a 15,000 member physician organization that provides services to 24 million patients across the U.S. Using CloudMD’s telehealth platform and virtual kiosk carts and kits, Dr. Roh will also help with expansion plans to build a network of telehealth powered satellite clinics covering large areas of under serviced areas across the U.S. (watch video of CloudMD virtual carts here).
Curtis Gibson oversees the management of the clinic in Mississippi and will be involved in expansion of CloudMD services within the southeastern U.S. Mr. Gibson has over 30 years’ experience in investment banking and business development for medical clinics.
Recently, the U.S. Trump Administration expressed their “unprecedented expansion of telemedicine during the pandemic represents a revolution in healthcare delivery, one to which the healthcare system has adapted quickly and effectively.”
Dr. Essam Hamza, CEO of CloudMD commented, “The COVID-19 pandemic has created a massive paradigm shift in how healthcare is delivered and has hyper-accelerated the adoption of telehealth by patients and health care providers – likely by 3 to 5 years. As a result, technology is being used to deliver high quality health care across North America – especially in rural areas where healthcare services are often limited or non-existent. This highly strategic purchase is only the first step of an aggressive expansion plan to offer a very unique hybrid care solution to a very vulnerable patient population.”
“We are very excited to work with CloudMD to expand the reach of consumer-centered virtual care, especially to the underserved areas of our country, starting in southeastern U.S. We believe we can help this technology become a fixture within medical practices, thereby making healthcare more accessible and cost-effective for patients, wherever they live,” said Dr. Fred Roh.
The acquisition is subject to customary closing conditions and receipt of TSX Venture Exchange approval. Terms of the agreement will be disclosed upon signing of the definitive agreement. The Company anticipates closing of the acquisition on or before Sept 08, 2020.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The Company offers SAAS based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). CloudMD currently provides service to a combined ecosystem of 376 clinics, over 3000 licensed practitioners and almost 3 million patient charts across its servers.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
CloudMD Software & Services Inc.
investors.cloudmd.ca
Email: investors@cloudmd.ca
Forward Looking Statements
This news release contains forward-looking statements that are based on CloudMD’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans and its intended use of the proceeds of the Offering. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.