SAN FRANCISCO, CALIFORNIA--(Marketwired - Dec. 13, 2016) -
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Inspira Financial Inc. (TSX VENTURE:LND) ("Inspira"), a company focused on providing a full range of financial solutions to the highly-fragmented U.S. mental health and addiction services market, including A/R financing and billing, today updated the market on highlights from its fiscal third quarter. As a result of the November acquisition of RBP, a billing company, Inspira added more than $200,000 in additional revenue for the quarter, and has collected $50,000 from those revenues. Loan book revenue is expected to decrease temporarily, and cash is expected to increase temporarily, as loans to general healthcare providers are being paid down and demand for new loans is expected to come primarily from mental health and addiction center providers.
The Company also announced it will attend several addiction rehab business conferences in 2017. The Company views this marketing channel as a key to growing its loan book and billing services. The sales and marketing team plans to have a booth for eight (8) conferences across the U.S. including the Addiction Executive Industry Summit, Innovations in Recovery and the West Coast Symposium on Addictive Disorders.
"I look forward to a busy 2017," said Mr. Brian Chevalier-Jordan, VP of Sales and Marketing for Inspira. "I am finding it much easier to market our lending services alongside a value-add service like billing. Our focus on the addiction market makes it easier to target borrowers and I have seen improvement in our pipeline from this strategy. I am working to convert those leads into customers and reduce what can be a long sales cycle."
The Company also updated the market on its technology development plans and accomplishments. The Company completed its lending software initiative, allowing more seamless data sharing between the borrower, the depository bank and Inspira's loan book management department. Since announcing the acquisition of RBP's proprietary billing process, the company plans to finish the first stage of software intended to reduce RBP's initial labor-intensive process in the near future, reducing the need for additional staff as Inspira executes billing and lending contracts with more borrowers.
"We recently received confirmation that a potential client in Texas, focused on adolescent recovery services, wanted Inspira to offer both financing and billing services for them," continued Mr. Chevalier-Jordan. "With the advances that our growing technology team is making just in the billing process, we are able to provide better reporting for our borrowers making it easier to close them on providing billing services. With the technology team's continued work on the process, we should see increasing margins with each client we add."
Inspira has also released a beta site for investors with basic information and limited functionality. The Company expects to release the first, fully functional version after the new year. The beta site can be found at www.inspirafin.ca.
About Inspira - Lending, Mental Health Billing and Practice Management Software
Further information about the company can be found at the recently launched beta version of the investor website: www.inspirafin.ca. The mental health and substance abuse market in the U.S. is a rapidly expanding industry, with current spending exceeding $35 billion.(1) Within this industry, thousands of businesses have annual revenues in the $1 million to $50 million range.(2) Due to the significant increase in addiction treatment as a result of the Parity Act, the large and permanently elevated volumes of claims has led Payors to impose upon facilities in the mental health sector similarly complex reimbursement requirements as those imposed in the physical healthcare sector. Substance abuse facilities tend to use several software applications and a non-automated billing company to document services provided and bill insurance companies. This cumbersome process slows down the tracking, billing and collection process as the customer's billings increase, and was not designed to handle the volume or level of detail now required by Payors for prompt payment. Thus, across the mental health and substance abuse industry there are collection delays and consequently, need for capital. The newly acquired Inspira technology platform incorporates every aspect of the new insurance reimbursement process to admit, diagnose, track, bill, and collect revenue specific to patients in the addiction recovery market. Inspira is now actively marketing a total cash flow solution for mental health companies and addiction centers.
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Inspira, Inspira achieving long-term cash flow from the lending operations, Inspira generating strong revenue and profit growth from its existing pipeline of prospective clients from its initiative to offer financial software services alongside lending solutions, lending operations continuing to throw off positive cash flow in the long run, increases or decreases in the Inspira cash, revenue or loan book, changes in the nature of the Inspira loan including reductions in general healthcare lending and increases in mental health lending, the pace and amount of reduction in staff time from technology gains, the amount and nature of cost savings, the potential pipeline of borrowers or customers, any increase in marginal profits, and the ability to close any potential client, are intended to identify forward-looking information. All figures are in Canadian dollars. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Inspira's current views and intentions with respect to future events, and current information available to Inspira, and are subject to certain risks, uncertainties and assumptions, including, success in marketing and selling Inspira's financial solutions, continued financial success of mental health and addiction treatment providers, the continued existence of RBP's contracts, that RBP is profitable, Inspira achieving, sustaining and/or increasing profitability, the demand for addiction treatment continuing to increase, Inspira generating positive cash flow from operations, Inspira expanding its revenue and profit, and Inspira being successful in its integration of RBP. Material factors or assumptions were applied in providing forward-looking information.
Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, dependence on debt markets and interest rates, demand for the lending products Inspira offers at interest rates higher than at which Inspira can borrow, a novel business model, granting of permits and licenses in a highly regulated business, difficulty integrating newly acquired businesses (including RBP), risks of performance by the target, new technologies, risk of billing irregularities by borrowers, low profit market segments, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in Inspira's annual Management's Discussion and Analysis for the year ended February 29, 2016, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect Inspira in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Inspira does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Inspira undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
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