Patient Home Monitoring Corp.

April 09, 2012 16:37 ET

Patient Home Monitoring (PHM) Announces March 2012 Monthly Meter Shipments, the Launch of Its Cloud-Based Software Product and Continued Improvement in Clinical Operations

SAN FRANCISCO, CALIFORNIA--(Marketwire - April 9, 2012) - Patient Home Monitoring Corp. (TSX VENTURE:PHM), a company focused on in-home cardiology healthcare services, today announced growth in terms of meters shipped and INR tests for the month of March 2012.

As it embarks on a clinic roll-up strategy, PHM continues to improve its clinic operations. As part of this improvement, PHM launched the StablilizerXL software product, a revolutionary way to manage patients on anti-coagulants.

Launch of StabilizerXL Software as a Service (SaaS) Web-Based Product

PHM is proud to announce it has launched a comprehensive clinical management software product into the disease management market. StabilizerXL provides a streamlined approach to clinic management with robust analytical tools to manage patients, track clinical outcomes and achieve cost efficiencies. The web-based software, designed by both clinicians and business managers working inside PHM's Coumadin clinics, was built from the ground up leveraging innovative components that solve the workflow problems that make operating a clinic so costly.

PHM plans to offer this software to its clinical partners at market rates on a monthly subscription basis.

Monthly 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 are reported:

  1. Monthly Test Growth. 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 March of 2012, PHM recorded 8,499 INR tests, an increase of 11% from the previous month.
  • For the second fiscal quarter, PHM recorded 23,581 INR tests, an increase of 21% from the previous quarter.
  • PHM has enjoyed double-digit quarter over quarter growth in revenue generating INR tests since it launched in June 2010. For this particular quarter, however, PHM is projecting that revenue growth will be modest in comparison to INR test growth, primarily because Medicare reset the reimbursement rate for testing from PHM's location for calendar year 2012 to 89% of 2011 rates. PHM expects to bill $38.93 USD per valid INR test for each of its patients on Medicare, which is invoiced after every fourth test.(1) For the remaining quarters of this fiscal and calendar year, however, PHM is targeting to resume double digit revenue growth.
Month (Quarter) INR Tests Sum/Reported Revenues
1st Quarter 19,434 total tests recorded in Q1
January (Q2) 7,440 7,440
February (Q2) 7,642 15,082
March (Q2) 8,499 23,581 total tests recorded in Q2
  1. New Meters Shipped. Once enrolled, PHM ships a meter to a patient. This meter has an expected 5-year economic life to a patient. With this meter investment, PHM generates 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 153 meters in March 2012, the third month of the second quarter fiscal 2012.

Month (Quarter) Meters Shipped Total Meters Shipped (running total) for the 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
March (Q2) 153 504 total meters shipped in Q2
1,005 new meters shipped in FY2012

"Our growth continues at strong levels but I believe we need to accelerate our patient enrollment in 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 believe we now have the right operational team whose members are focused on clinic 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 increased 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."

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 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. Not every patient's 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 INR 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

  • Michael Dalsin
    Chairman, Patient Home Monitoring
    Managing Director, Stanmore Capital Partners, Inc.
    (323) 253-3055