TORONTO, Sept. 15, 2022 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (TSXV:SLHG) (“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, today provides an update on the expansion of one of its current Medicare Advantage (“MA”) plans from South Florida into Central Florida, increasing value-based care coverage.
Skylight is currently contracted with Florida MA provider in South Florida;
Its new amendment expands the current contract into its 3 primary care practices in Central Florida starting January 2023;
The expansion of its current AvMed contract allows Skylight to begin enrolling Medicare members currently in the Central Florida market;
Skylight expects the expanded coverage to contribute growth in MA membership for 2023.
Skylight Health continues to see opportunities to expand current and engage with new provider partners for MA value-based care across its network in Florida. The Company currently has 4 MA value-based care contracts in place with future contracts in negotiation. As practices are able to take on more health plans and provide patients with more options, this is a positive step towards expanding access for current and new AvMed members seeking primary care.
Additionally, the amendment to expand coverage also includes a shift in the current reimbursement model from fee-for-service to a value-based care capitation fee with shared savings opportunities. The Company expects that this will be an increase to the current revenue generated under this contract not including any projected growth from the newly added Central Florida locations. This additional funding will allow the Company to provide more resources to support current and new MA members under the value- based care plan.
The Company expects that credentialing will be completed in time for annual enrollment that generally runs between October and December of each calendar year. This would enable its 3 central Florida locations to begin accepting new MA members under this plan for an effective start in January 2023.
The Company is actively working on additional MA plans for 2023 and looks forward to announcing further updates on these agreements in the coming weeks ahead.
The company has granted an aggregate of 220,000 stock options and 167,500 RSU’s to officers, and employees of the Company in accordance with the Company’s incentive stock option plan, subject to regulatory acceptance. These incentive stock options are exercisable at $0.67 per share for a period of three years.
Pursuant to the terms and subject to the conditions of the Debt Settlement Agreements, the Company will issue an aggregate of 738,080 common shares (each a “Common Share”) to the Creditors at a deemed price of $0.70 per Common Share, in satisfaction of the Debt. The issuance of the Common Shares to the Creditors pursuant to the Debt Settlement Agreement is subject to the approval of the TSX Venture Exchange. The Common Shares will be subject to a statutory resale restriction which will expire four months and one day from the date of issuance in accordance with applicable securities laws. All shares are subject to 4 months hold period.
About Skylight Health Group
Skylight Health Group (TSXV:SLHG) is a healthcare platform in the United States utilizing software and services to transition patients into a value-based care model and drive better health outcomes and experiences. The Company operates a multi-state health network comprised of physical practices that provide services from primary care, sub-specialty, allied health, and laboratory and diagnostic testing. The Company focuses on transitioning small and independent practices from a traditional fee-for-service (FFS) model to value-based care 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 volume of patients per day. In a value-based care model, the providers offer care that is aimed at keeping patients healthy and minimize unnecessary health expenditures that are not proven to maintain the patient’s well-being. This places an emphasis on quality over volume. Through this model, Skylight Health is able to improve patient outcomes, reduce cost of delivery, and drive stronger financial performance.
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.
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