– HealthLynked acquires Cura Health Management and its wholly-owned subsidiary ACO Health Partners LLC for $1.75M.
– The acquisition is expected to contribute approximately $2.25M of revenue and $500k in EBITDA in year one, increasing HealthLynked’s consolidated revenues by 47% and reducing the company’s current annual cash burn by over 50%.
HealthLynked Corp, a nationwide healthcare network focused on care management of its members and a provider of healthcare technologies that connect doctors, patients and medical data, today announced that it has entered into a definitive agreement to acquire Cura Health Management, LLC (“CHM”) and its wholly owned subsidiary ACO Health Partners, LLC (“AHP”). The acquisition cost of $1.75 million was a combination of cash, HealthLynked common stock, and a four-year performance-based earnout. This structure vests the two founders, Nicole Bradberry and Marsha Boggess, in the success of both the company’s newly formed Accountable Care Organization (“ACO”) Division and HealthLynked at large.
Acquisition Benefits
HealthLynked puts patients front and center in obtaining and sharing their medical records, called “personal health records,” for themselves and their families. HealthLynked is building consumer-centric technologies that support portability as well as search and share operations for patients. By starting its ACO Division with this acquisition, HealthLynked is able to acquire large numbers of patients due to the aggregation nature of ACOs as well as provide an underlying structure for clinical integration and data analytics that enables their success.
The acquisition is expected to contribute approximately $2,250,000 of revenue and $500,000 in EBITDA in year one, increasing HealthLynked’s consolidated revenues by 47% and reducing the company’s current annual cash burn by over 50%.
Further Expansion into Accountable Care Organizations
CHM is a well-established national service provider and AHP is a well-established ACO in the Florida Market with a history of managing and supporting ACOs and receiving shared savings from the Centers for Medicare and Medicaid Services (CMS). In addition to Florida, AHP includes provider participants in North Carolina, New Jersey, and Indiana. ACOs seek to reduce healthcare costs and improve health outcomes for Medicare patients using technology, care coordination and care management, making it an ideal acquisition for HealthLynked. The acquisition of AHP positions HealthLynked to engage in value-based reimbursement programs offered both by CMS and commercial payers.
Healthcare Data Analytics Expansion
HealthLynked will draw on the best attributes from the acquisition to improve the quality of service for all our patient members, including our new ACO patients. AHP patient members will benefit from HealthLynked’s digital technology that connects and analyzes their healthcare data to monitor care, reduce costs, and improve outcomes. HealthLynked members will benefit from CHP’s and AHP’s extensive experience in quality care management, care coordination, and value-based analytics, including programs that enhance access to appropriate care while avoiding unnecessary costs to both the patients and the system, a tenet of the ACO model.
Acquisition Strategy for HealthLynked
“Our acquisition strategy is focused on purchasing high growth, profitable ACO and/or MSO businesses that complement our digital healthcare business growth by paying 4 times adjusted EBITDA, with 25% in cash, 50% in HLYK stock, and 25% in four-year performance-based payouts,” said George O’Leary, Chief Financial Officer of HealthLynked.
