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VANCOUVER, BC, Nov. 30, 2022 /CNW/ - CareSpan Health, Inc. (TSXV: CSPN) ("CareSpan" or the "Company"), the 'Clinic-in-the-Cloud' addressing the shortage in primary care and improving the delivery of chronic and urgent care, as well as mental health, today reported financial results for the three and nine months ended September 30, 2022. Unless otherwise stated, all amounts are in US dollars.
CareSpan delivered a 35% growth in patient visits and 6% growth in revenue for in the first nine months of 2022 compared to the same period in 2021. "The growth in revenues and patient visits is a testament to the continued validation and strength of our business model, our unique "Clinic-in-the-Cloud" platform, and our team," said Rembert de Villa, CareSpan's CEO. "We continue to be very focused on our mission to tackle the primary care and mental health provider shortage and the escalating cost of care through our focus on enabling quality affordable access to underserved populations through nurse practitioners as well clinicians in behavioral health."
Revenues of $3.938 million for the nine months ended September 30, 2022 was recorded compared to $3.710 million for the same period in 2021, representing an increase of 6%.
Operating loss for the period was $3,261,652 compared to $4,394,600 in 2021, resulting from cost containment efforts.
Patient visits for the nine months ended September 30, 2022 were 32,140 compared to 23,877 for the same period in 2021, a 35% increase from the same period in 2021. Due to the overall decline in Covid 19-related reimbursements, revenue per encounter declined, offsetting volume growth in patient visits.
On July 1, 2022, the Company reduced and restructured its investment in CareSpan Asia to 15% from 50.1% to proportionately reflect a larger investment by the regional partner/shareholder, and the Company no longer consolidates its balance sheets and operating results.
Second Quarter 2022 Financial Highlights
Revenues for the third quarter ended, 2022 were $1.062 million compared to $1.398 million in the third quarter of 2021, due to the reduction in COVID19 visits and related reimbursements.
Operating loss was $1,357,170 compared to $982,527 in 2021 Q3, due to non-cash items in 2022 offsetting continued cost containment efforts.
The Company's cash balance was $247,459 as of September 30, 2022 compared to $948,662 at December 31, 2021. Cash was used mainly for working capital to support business operations and growth.
Revenue Growth and Cost Restructuring Plan
We continue to build our infrastructure, technology and capability set for the implementation of remote patient monitoring. According to Rembert de Villa, "We aim to help our network providers drive and promote better health outcomes through the combination of remote patient monitoring and chronic care management."
While we continue to focus on growing our top line, we are equally focused on continuing to implement the cost reduction plan initiated in 2021. We are on track with our cost reduction plans. "We believe that this adjustment in our cost structure is an important step to get us on a path to achieve positive cash flow from operations", said Leslie Markow, Chief Financial Officer. "We have been very deliberate in prioritizing our spend in improving areas of technology and services that will drive revenue and improve customer satisfaction."
"CareSpan continues to be in a unique position to address the shortage of primary care and the escalating cost of chronic care in the U.S. Nurse practitioners are being recognized by more and more states as an important solution to this problem and CareSpan is one of the few companies to have designed its 'Clinic-in-the-Cloud' offering to equip Nurse practitioners and other clinicians with cost-effective, integrated digital tools necessary to deliver the best care", said Rembert de Villa.
About CareSpan Health, Inc.
CareSpan Health, Inc. operates as a healthcare technology and services company in the United States. The company operates Clinic-in-the Cloud, a clinical workflow driven platform that integrates remote patient monitoring, diagnostic tools, patient's electronic health record, care collaboration capabilities, patient engagement, e-prescribing, and lab ordering to support in-person and virtual/telehealth care. It also delivers primary and chronic, and urgent care, as well as behavioral health care services through its platform.
CareSpan's vision is to enable care for the underserved globally. In the U.S., the Company is currently focused on enabling nurse practitioners in primary, urgent and chronic care in healthcare shortage areas. With its partnership in Europe targets enabling care for the fast-growing elderly population and in Southeast Asia, the focus is on leveraging the Company's digital platform to provide better access to qualify care for the masses.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. These statements include, but are not limited to, statements regarding the implementation of the cost reduction plan as means to achieve positive cash flow. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CareSpan Health, Inc.
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