TORONTO, Feb. 21, 2019 (GLOBE NEWSWIRE) — 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.”
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”.
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.
Chief Executive Officer, Director