BOCA RATON, FLORIDA--(Marketwired - Feb. 14, 2017) -
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Inspira Financial Inc. (TSX VENTURE:LND) ("Inspira"), a company focused on providing financial solutions to the highly fragmented U.S. mental health and addiction services market, today announced it secured space at IBM's former North American Research and Development facility in Boca Raton, Florida. On January 17, 2017, Inspira announced it moved its headquarters from San Francisco, California to Boca Raton, Florida to better serve the addiction market. Inspira also provided shareholders with an update on its investments in its novel technology to further automate the largely manually mental health billing and collections process.
Process Automation through Novel Technology
Inspira is expanding its software development team which is focused on additional coding of business rules and further improvements to automating the intensive components of the billing and collection process.
"What we've seen across this industry is a high level of client customization for billing," said Edward Brann, Executive Director. "The driving force behind this trend is that each treatment facility is providing their third party billing company information in a different format."
"We are building on our existing systems and further developing our existing software to automatically pull customized data from clients and translate the customized data into a standardized output which is seen by our billers," continued Mr. Brann. "This is a great example of how we will aggressively invest in building on our novel and propriety software to replace what was once a manual process thereby reducing costs, increasing margins and, most importantly, building a sustainable competitive advantage."
The new Florida headquarters, within a building originally developed by IBM as its North American Research and Development facility, ranks among the most technologically advanced business parks in the United States with a Sonet Fiber Optic Network and an on-site backup power plant strong enough to run the facility for twelve days. The current building has additional available office space to accommodate future growth.
About Inspira - Lending, Mental Health Billing and Collections
Further information about Inspira 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 United States is a rapidly expanding industry, with current spending exceeding US$35 billion. Within this industry, thousands of businesses have annual revenues in the US$1 million to US$50 million range. 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, improvements to automating the intensive components of the billing and collection process to automatically pull customized data from clients and translate the customized data into a standardized output, and the software replacing what was once a manual process thereby reducing costs, increasing margins and, most importantly, building a sustainable competitive advantage, are intended to identify forward-looking information. 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: the success of Inspira's sales and marketing efforts effectively growing the total client base; Inspira's ability to satisfy and keep existing clients; management execution, hiring and maintaining qualified staff, and understanding and achieving software improvements within reasonable time frames and costs; the demand for addiction treatment continuing to increase; the new service line being complimentary to existing Inspira clients; Inspira being successful in its integration of the billing company; Inspira's clients maintaining revenue regardless of overall industry demand; the successful recruitment of employee talent in Florida; increasing total clients serviced resulting in a positive impact on revenue; and Inspira being able to use the scale of multiple clients and a larger operation to reduce costs. 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, litigation, 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 the billing company), risks of performance by the target, new technologies, risk of billing irregularities by borrowers, low profit market segments, risks associated with the declaration and payment of dividends, including the discretion of Inspira's Board of Directors to declare dividends, 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. All figures are in Canadian dollars.
In addition to the foregoing, further litigation and administrative actions, even if completely without merit, can be expected to cause Inspira to continue to incur substantial financial expenses to defend its actions. In addition, the litigation may be expected to draw management resources that would otherwise be used to grow and manage the company, and have the effect of impairing or slowing the efforts of Inspira to execute on its business plan. Inspira can offer no guidance on whether or how long such proceedings will continue.
Neither 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.