VitalHub Corp. (the “Company” or “VitalHub”) (TSXV: VHI) is pleased
to announce that it has imminent plans to enter the rapidly growing
global patient flow market through a targeted acquisition strategy.
Patient flow is the movement of patients through a healthcare
facility, and involves the physical resources, coordination of
medical care, and internal systems that guide patients through the
delivery of care, from admission to discharge. The global patient
flow solutions market is projected to reach US$2.53 billion by
2025, growing at a CAGR of 21.32% from 2017 to 2025. (Verified
Market Research, August 2018)
Improving patient flow is a critical component in the quality
and delivery of care, and in ensuring the efficient use of
resources required to continue to drive down medical costs. In
North America, inefficient patient flow is attributed to an average
$49,500 loss per bed, per year, with an average of 45 days lost per
bed per year. Some estimates have cited the current North American
cost of inefficient patient flow to be $900B. The massive costs
stemming from patient-flow inefficiencies comprise the following
issues: hospital gridlock, low demand capacity, poor care
coordination, low bed turnover, low cost containment, poor
discharge planning, high wait-times and re-admissions, and
inefficient resource utilization.
Many members of the VitalHub team have had extensive experience
successfully addressing the patient flow market through the growth
of Medworxx, an international Healthcare IT company that was
publicly traded on the TSX.V, and specialized in unique patient
flow solutions, originating from use in Canadian hospitals.
Medworxx grew internationally before being sold to Aptean, a
subsidiary of Vista Equity Partners, in October 2015.
VitalHub’s entry into the patient flow market is strategically
timed with the Ontario Ford government pushing to transition toward
value-based care models, in aiming to improve efficiencies and
lower costs across the healthcare system. "Ontario Premier Doug
Ford uses the term 'hallway medicine' to describe the overcrowding
in hospitals." (“Doug Ford can end ‘hallway medicine’ by letting
health-care providers actually compete,” Financial Post, Jan 17,
2019) As the Ontario healthcare systems undergoes restructuring and
reorganization, VitalHub believes its patient flow product
offerings will comprise a meaningful part of the solutions required
to address the ‘hallway medicine’ issue, in support of the Ford
government initiative.
Presently, VitalHub has signed an LOI for an acquisition with an
internationally based patient flow vendor. Although there is no
guarantee, the Company expects this LOI to materialize into a
closed transaction.
“The patient flow market represents a great opportunity for us
to broaden our existing portfolio, using strategic acquisitions to
fuel meaningful growth,” said Dan Matlow, CEO of VitalHub. “The
capacity of healthcare systems, globally, is extremely strained,
with rising demands continuing to outpace available supply.
Inefficiencies are costly, and more tools need to be developed to
address this problem. While we will be focusing on all aspects of
patient flow, we will place emphasis on the mental health space,
where we believe the increasing awareness of mental health will
continue to drive capacity issues, forcing the need for effective
solutions. The patient flow market will allow VitalHub to pursue
significant international expansion, serving a large addressable
market, while contributing to solving a critical problem.”
ABOUT VITALHUB:
VitalHub develops and supports mission-critical healthcare
information systems in the Mental Health (Child, Youth and Adult),
Long Term Care, Community Health Service, Home Health and Hospital
sectors. VitalHub technologies include Blockchain, Mobile, and
Web-Based Assessment and EHR solutions.
VitalHub's aim is to create high-value, secured solutions
enabling interoperability among existing health data systems.
VitalHub is primarily focused on working with organizations in the
Mental Health, Acute and Long-Term Care space, to further extend
organization's applications across the continuum of care, powered
by the security, efficiency, and trust of Blockchain
technology.
The Company has a robust two-pronged growth strategy, targeting
organic growth opportunities within its product suite, and pursuing
an aggressive M&A plan. Currently, VitalHub serves 200+ clients
across North America. VitalHub is based in Toronto, Canada, with an
offshore development hub in Sri Lanka. The Company is publicly
traded on the TSX Venture Exchange under the symbol "VHI".
CAUTIONARY STATEMENT
This press release includes forward-looking statements regarding
the Corporation and its business, which may include, but is not
limited to, statements with respect to the appointment of a new
directors. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "is expected",
"expects", "scheduled", "intends", "contemplates", "anticipates",
"believes", "proposes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Such statements are based on
the current expectations of the management of each entity, and are
based on assumptions and subject to risks and uncertainties.
Although the management of each entity believes that the
assumptions underlying these statements are reasonable, they may
prove to be incorrect. The forward-looking events and circumstances
discussed in this release, including the share consolidation
proposal, may not occur by certain specified dates or at all and
could differ materially as a result of known and unknown risk
factors and uncertainties affecting the companies, including risks
regarding the technology industry, failure to obtain regulatory or
shareholder approvals, market conditions, economic factors, the
equity markets generally and risks associated with growth and
competition. Although the Corporation has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. No forward-looking statement can be
guaranteed. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and the Corporation undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
CONTACT INFORMATION
Dan MatlowChief Executive Officer, Director(416)
727-9061dan.matlow@vitalhub.com
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