SOURCE: Millennium Healthcare, Inc.

Millennium Healthcare, Inc.

November 20, 2014 15:04 ET

Millennium Healthcare Provides Details on Its Diagnostic Devices

Focus on Prevention and Early Care Benefits Both Patients and Providers

GARDEN CITY, NY--(Marketwired - November 20, 2014) - Millennium Healthcare Inc. (OTCQB: MHCC) today provided details on its sales and distribution model as well as an update on Millennium Medical Devices (MMD) as it advances a commercial strategy with efficient use of sales resources and a creative marketing approach. MMD is a wholly owned subsidiary of Millennium Healthcare.

Dominic Sartorio, CEO of Millennium Healthcare Inc., noted that, "Our third quarter total revenue for the three months ending September 30 was $6.4 million, of which $5.9 million was from the sale of OralCDx® and VasoScan™ diagnostic devices. This is up from the three month total revenue of $0.5 million for the third quarter of 2013, all of which was from physician practice management and other services. The 2014 third quarter was the first full quarter with our strategy to provide exclusive diagnostic devices to primary care physician groups, and these sales results validate the initial success of our new sales and distribution model. This model is attuned to the realities of patient care presented by the Affordable Care Act, which has accelerated the focus on primary care to wellness and prevention."

"Our sales model is designed to help large organizations such as Accountable Care Organizations (ACOs) monetize their physician base while bringing cutting-edge technologies to the physicians they serve," he added. "We believe this 'top down' approach is much more effective than using direct sales representatives because an ACO or large hospital system has the ability to enforce compliance within their network. This business model will allow MMD to grow faster as the ACO or hospital system becomes our business partner in rolling out our diagnostic tests that are reimbursed to the parent network," Mr. Sartorio added.

Millennium Healthcare utilizes an innovative model that focuses on three major customer bases. David Perry, chief operating officer of Millennium Healthcare Inc., stated, "The majority of our sales to date have come via Accountable Care Organizations, hospital systems and established sales networks focused on primary care physicians. This approach is an effective, cost-efficient way to place MMD technology into many physician practices quickly."

Regarding the positive interaction between MMD and ACOs, Mr. Perry added, "An Accountable Care Organization is a network of doctors and hospitals that share financial and medical responsibility for providing coordinated care to patients with the goal of limiting unnecessary spending while providing excellent patient care. The premise of the ACO is that physicians will work cooperatively to provide this excellent care and act proactively to prevent costly, lengthy hospital stays. Our products support wellness and prevention, making for an ideal match. There are more than 500 ACOs in the United States that service approximately 20% of Americans. ACOs are a key part of the Millennium Medical Devices business plan today and we look forward to establishing new relationships to support our future growth."

Mr. Perry further stated, "Similarly, a Physician Hospital Organization, or PHO, is a network of doctors owned by or associated with a hospital system. Over the last 15 years, hospital systems have aggressively purchased physician practices in order to control their costs. MMD products can provide incremental revenues to these participating practices, and moreover, MMD's innovative diagnostic tests can ultimately provide additional revenues for the hospital system."

Mr. Perry concluded, "Many networks of tenured sales professional were created over the last five years to bring new technology and advanced testing to primary care physicians. These sales organizations have a regional or national presence and can quickly translate their relationships into sales of MMD devices. This has been a tremendous fit as these sales teams are always looking for new technology to bring to their networks. In each part of the MMD sales model, no base salary, commissions, benefits or expenses are provided by Millennium Healthcare. Rather, each business model utilizes its own physician relationships yet all payments flow through us."

About Millennium Healthcare Inc.
Millennium Healthcare Inc., through its wholly owned operating subsidiaries, provides primary care physician practices, physician groups and healthcare facilities of all sizes with cutting-edge medical devices focused primarily on preventive care through early detection. The Company also provides advanced billing and coding services, and practice development and management services.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Forward-looking statements are identified by such words and phrases as "we expect," "expected to," "estimates," "estimated," "current outlook," "we look forward to," "would equate to," "projects," "projections," "projected to be," "anticipates," "anticipated," "we believe," "could be," and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. Because they are forward-looking, they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of this release.

Contact Information