SAN FRANCISCO, CALIFORNIA--(Marketwire - March 12, 2012) - Patient Home Monitoring Corp. (TSX VENTURE:PHM), a company focused on in-home cardiology healthcare services, today announced it has replaced its Chief Operating Officer with a team of more aggressive operations executives.
Additionally, the company is providing more comprehensive monthly financial information about the business to the market. Starting with February 2012, the company will now provide data used to calculate monthly revenue and monthly revenue growth. The company will continue to provide monthly growth in terms of meters shipped as well.
New Operational Team
PHM has found tremendous enrollment demand with its clinic operations roll-up strategy, however operational execution requires improvement. Therefore, a new operational management team has been deployed with the focus of enrolling patients more quickly and effectively from acquired clinics. PHM's COO/CFO has resigned due to personal reasons. David Ward will serve as interim Chief Financial Officer.
"Our growth continues but it is clear we need to accelerate our patient enrollment from clinic operations," said Dr. Jaime Gerber, PHM's CEO. "Our recent clinic acquisition shows us once again that there is a significant demand for our services with many new patients to enroll. Our current operational challenge is to meet this demand more quickly. I am now putting in place an operational team that will focus on capturing revenue growth, overall profitability and accelerating our monthly patient enrollment. I am confident that in the months to come, and as we acquire more clinics, this renewed focus on our clinical operations will result in increasing monthly growth. There are thousands of patients interested in in-home testing and I plan to give every one of them an opportunity to enroll into our service as quickly as they desire."
Monthly Revenue Growth
PHM has grown revenues by adding patients to their long-term annuity stream business. To better communicate this trend and its impact on the business, two figures will be reported:
- Monthly Revenue Growth Data. PHM generates a recurring revenue stream from enrolled testers by recording a weekly INR value and transmitting the information to the patient's healthcare provider.
In February of 2012, PHM recorded 7,642 INR tests.
PHM projects to collect a reduced payment of $36 USD per valid INR test for each patient which is earned after every fourth test.(1)
| Month (Quarter) | INR Tests | Cumulative by Quarter/Reported Revenues | ||
| October (Q1) | 5,769 | 5,769 | ||
| November (Q1) | 6,657 | 12,426 | ||
| December (Q1) | 7,008 | 19,434 / $845,270 for Q1FY2012 | ||
| January (Q2) | 7,440 | 7,440 | ||
| February (Q2) | 7,642 | 15,082 |
- Meters Shipped Monthly. Once enrolled, PHM ships a meter with an expected 5-year economic life to a patient. With this meter investment, PHM generates monthly recurring revenue by providing weekly monitoring services to the patient.
Understanding how many meters were shipped to newly enrolled patients each month is relevant for analyzing growth because shipment of a meter is a prerequisite to performing INR(2) tests eligible for reimbursement(3).
PHM shipped 163 meters in February 2012, the second month of the second quarter fiscal 2012.
| Month (Quarter) | Meters Shipped | Cumulative by Quarter; Total for the Year | ||
| October (Q1) | 177 | 177 | ||
| November (Q1) | 169 | 346 | ||
| December (Q1) | 155 | 501 total meters shipped in Q1 | ||
| January (Q2) | 188 | 188 | ||
| February (Q2) | 163 | 351 | ||
| 852 new meters shipped in FY2012 | ||||
As required by TSX rules, PHM must disclose information related to finder's fees paid to brokers in connection with the recently closed convertible debenture financings. A total of $36,480 and 243,200 broker warrants were paid to Dundee Securities Ltd. and Wingate Investment Management Ltd. Each broker warrant is exercisable into one common share at a price of $0.15 per share for a two year period.
About PHM
PHM is a healthcare services company focused on providing home-based monitoring services and supplies for cardiology patients. PHM's entry-point service monitors patients on blood thinner medications such as Coumadin(r) or warfarin. Medicare recently expanded reimbursement for this in-home service. PHM has a unique value proposition to cardiology groups that manage patients on blood thinners, focusing on systemization to enroll patients in PST. This unique, systemized approach creates an opportunity for physician groups to operate more efficiently, increasing revenue to their clinic while providing a higher standard of care for patients. PHM plans to lever its position as a value-added service provider to expand into other home-based services for these patients and their referring physicians.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, changes in US healthcare laws, coverage or budgets, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.
(1) Revenue is generated only after four valid INR tests have been completed by a patient. To be documented as a valid INR test, the test must be performed at least seven days after the previous valid test. PHM is reimbursed $155.71 USD (down from $175.54 USD in 2011) for Medicare patients once the patient has completed four valid INR tests. While not reimbursed on a per-test basis, it can be calculated that each valid INR test in a billing cycle has a value of $38.93 USD. Not every INR test is valid, as some INR tests may be less than 7 days apart. The majority of PHM's patient population is covered by Medicare. However, there are also patients with commercial insurance providers with reimbursement and allowable rates that vary by carrier and plan. The reimbursement figure above does not include training revenue which PHM generates by teaching a patient to successfully demonstrate a completed INR test prior to enrollment (requirement by Medicare for the self-test INR service). Therefore, the total revenue figure will not be exclusively tied to the total number of valid INR test cycles completed.
(2) International normalized ratio ("INR") tests are used as measures of current and future sales performance. Please refer to the "Non- GAAP Measures" section of PHM's MD&A for further discussion on these operational measures
(3) Management does not mean to suggest or imply that shipment of meters is equivalent to revenue. Meter shipment is a prerequisite, but not a guarantee, of revenue. Management does not propose meter shipments as a non-GAAP financial measurement, because there is no simple reconciliation between meter shipment and GAAP revenue.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Chairman, Patient Home Monitoring
Managing Director, Stanmore Capital Partners, Inc
(323) 253-3055