SOURCE: Spine Pain Management, Inc.

March 22, 2010 22:09 ET

Health Care Reform Bill Passes Sunday, March 21st, 2010, Good News for SPIN

HOUSTON, TX--(Marketwire - March 22, 2010) -  Spine Pain Management, Inc. (OTCBB: SPIN) is pleased to provide a corporate update following the passing of the landmark Health Care Reform Bill. It is management's belief that, after considering the pros and cons of the historic legislation, this healthcare overhaul should accelerate the company's future growth.

Dr. William Donovan, CEO of Spine Pain Management, stated:

"I am very pleased that this Bill has passed, this can only have a positive outcome for SPIN. Doctors will now be looking for alternate revenue sources that are efficient and cost effective. SPIN has built a medical marketing, management, billing and collection company facilitating treatment for patients who have sustained Spine Injuries resulting from traumatic injuries, which is geared for rapid growth in the situation that is happening in the United States right now.

"SPIN does not need the Health Care Reform Bill to make money, it is an SEC reporting Company that to date has only been around long enough to report one quarter's financial results: Third Quarter, 2009; and it had net income of a penny a share in its first quarter. Actually, the Company was only operational for the last five weeks of that quarter and was still profitable for the quarter. In the next week or so, SPIN will be reporting its fourth quarter and full year operating results."

Dr. Donovan, CEO, stated, "It has been a very productive first five months for the Company to include this current month, the first of the new year. I fully expect first quarter's numbers in our Houston clinic to exceed fourth quarter. In addition, we expect to begin receiving revenues from our expansion phase into other cities."

Some insight into SPIN and its operations:

Spine Pain Management, Inc. (SPIN) is a medical management company facilitating treatment for patients who have sustained Spine Injuries resulting from traumatic at fault injuries. SPIN assists Spine Surgeons, Orthopaedic Surgeons and other Health care providers in providing necessary, reasonable and appropriate treatment for patients with spine injuries. SPIN is an advocate for patients and an asset for those who represent these injured workers. SPIN provides pre-funding for pain treatment allowing diagnostic testing, along with non-invasive and surgical care allowing the patients to receive needed treatment. SPIN's patient advocacy is gratifying to patients who obtain needed relief from painful conditions. 

SPIN is not the Medical Provider that provides the treatments. SPIN has no medical liability. What SPIN does is assigns, coordinates and pays for the patient treatment at a SPIN approved Doctor Facility in the patient's respective City. The "operative" word above for SPIN is "pays." Before the advent of SPIN, Attorneys would either have to pay the Pain Practitioner out of pocket, or the Practitioner would have to wait until the suit is settled to get "paid." The problem is solved by SPIN paying a fair guaranteed fixed discounted price to the Pain Practitioner shortly after the procedure.

With this background, Health Care Reform will accelerate SPIN's growth. As mentioned in the above PR, SPIN is now expanding their business to other Cities. Their model calls for just one Authorized Spine Diagnostic Facility (AD) in each city. Now for common illustrative purposes, just think of that Facility as "franchisee" but from here on refer to him as AD.

AD will be required to provide its own space, equipment, personnel, medical device, Pain Specialist and medication. In most cases the AD would be a Doctor's Clinic or Hospital who already has all but perhaps the medication, disposable equipment and Pain Specialist, in place. A typical nerve block injection, one of the common procedures, will be billed by SPIN per injection. SPIN would pay a guaranteed discounted amount to AD per procedure. SPIN is not only referring the patient to the SPIN center, but also paying "right away" and therefore assuming risk of collection. 

Since the above has nothing to do with patients' own health insurance carrier, but only with the liability carrier, it falls totally out of the Scope or control of Health Care Reform. While there is no guarantee, it might be safe to say that SPIN's National expansion will not be constrained by a lack of prospective ADs vying for the single spot in each city.

Because of expected declines in doctor revenue because of Health Care Reform, many doctors will be looking for new revenue centers for their practice.

Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and other factors over which the Company has little or no control. The Company does not intent (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.

Contact Information

  • Spine Pain Management, Inc.
    William F. Donovan, M.D.
    CEO and Director