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CloudMD- Conquering New Frontiers in Telemedicine

10 Dec CloudMD- Conquering New Frontiers in Telemedicine

CloudMD Software and Services Inc. (OTCQB: DOCRF), a leading telehealth provider in Canada, will be providing on-demand telemedicine services to the customers of one of Western Canada’s largest grocery chain, Save-On-Foods, extending their plans to set up kiosks in nine pharmacies across British Columbia. The grocery chain has over 180 stores across British Columbia, Alberta, Saskatchewan, Manitoba and the Yukon.

CloudMD on Demand, a virtual telemedicine link embedded into Save-On-Foods’ website, allows customers to consult a licensed doctor for health related questions, test reviews, lab referrals and prescriptions. The Save-on-Food pharmacy team will fulfil these prescription deliveries. The arrangement offers customers free access to the telemedicine link, at no extra cost, and help them overcome the challenges posed by limited access to healthcare resources owing to the COVID-19 pandemic.

Dr. Essam Hamza, CEO of CloudMD, commented

Save-On-Foods is an innovator in the space, and their dedication and commitment to their customers is very evident across all aspects of the business. We are proud to deepen our partnership with Save-On-Foods to provide customers with better access to care through an on-demand telemedicine link. Save-On-Food’s has an industry-leading, intuitive e-commerce platform, and now customers will be able to see a doctor directly on the website from their home, school or workplace,  for medical related issues or prescription refills and either pick up the prescription at the pharmacy of their choice, or have it delivered directly, for free. Providing that level of service is incredibly important to both of our organizations and is invaluable to continue ensuring exceptional customer service.”

The Company has been on an acquisition spree with seven new acquisitions during Q3, 2020, adding nearly $19 million in revenue. CloudMD also recorded record revenue of $3.4 million as against $2.2 million in Q3 2019, an impressive 55 percent increase.

CloudMD Software and Services Inc (OTCQB: DOCRF)

Market Cap: $288.62M; Current Share Price: 1.79 USDChart
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The U.S Healthcare system is estimated to be a $3.2 trillion market comprising of various stakeholders such as hospitals, insurance companies, medical equipment suppliers and pharmacies to name a few. The world is moving towards digitization at a fast pace, and healthcare is one industry where online services are making swift inroads, owing to their promise of convenience, transparency and cost–efficiency.

Online medical consultation is set to dominate the healthcare e-commerce segment in the coming years according to a report by adroit market research, which estimates that the Global healthcare e-commerce market will be worth over USD 435.8 billion by 2025. The growth in this sector will primarily be fuelled by an increase in geriatric population, rise in lifestyle related diseases such as diabetes, the advent of the Smartphone, the increasing internet penetration even in developing countries and efforts by governments to increase awareness and provide inclusive healthcare.

The conventional healthcare system is plagued by issues such as lack of transparency leading to high cost of treatments. The conventional approach is centred on volume based care, leading to the prescription of unnecessary testing procedures, which further escalates the cost of treatment. The Insurance providers wield undue negotiating power with hospitals and other service providers, driving the costs further up. There has also been a rise in out of pocket expenses that a patient has to shell out and growing high deductible health plans (HDHP), which makes a customer price conscious and wary of approaching treatment providers, which in turn has a negative impact on the growth of the industry.

From a Hospital or Healthcare administrator point of view, the conventional approach to medical consultation results in a high administrative cost burden, by having to establish and maintain a whole setup dedicated to processing insurance claims and follow ups. In addition, a typical claim processing and settlement takes over 27 to 90 days for hospitals and service providers and sometimes even results in bad debts. The inordinate delay in claim settlement can affect the quality of healthcare.

The emergence of online healthcare service providers has revolutionised the delivery of medical care not only for the patients but also for the hospitals and other service providers. The portals offer numerous advantages such as the ability to choose a particular healthcare provider, allow patients to compare services and prices, offer a completely transparent and upfront billing system and consolidate information and billing details in one place.

The healthcare system is now moving from a volume-based approach to a value-based treatment approach, with focus on offering customized, preventive medication to patients, all from the convenience of their homes.

Image Source: Company

CloudMD uses a combination of Artificial Intelligence, a wide network of primary care clinics and telemedicine, to offer SaaS-based health solutions to enterprise partners. The Company provides its services to insurance companies, employers and pharmacies such as Pure Integrative Pharmacies, Pharmasave and Save-On-Foods pharmacy.

Currently the Company has a robust network of over 500 clinics, 4000 licensed practitioners and 8 million patients across North America providing a comprehensive healthcare solution to patients and empowering doctors. CloudMD offers both consumer and enterprise solutions, and includes a wide gamut of services that encompass the storage, maintenance and sharing of personalized health records to create a team-based holistic care approach to delivering healthcare. It also empowers the patients by providing access to their lab results, charts and other health monitoring information that can be shared securely with their doctor or clinical staff.

Image Source: Company

The Company acquired South Surrey Medical Inc., an integrated medical clinic in August 2020, and entered into a share purchase agreement for acquiring majority interest in West Mississauga Medical Ltd, a family medicine and specialty clinic. In addition, it completed the acquisition of Snapclarity Inc a mental health assessment digital platform. CloudMD has also signed a binding term sheet for the acquisition of Canadian Medical Directory, the largest directory of medical professionals in Canada, besides signing a binding term sheet for a path-breaking healthcare navigation platform namely Medical Confidence Inc.

Furthermore the Company has bought an 87.5 percent interest in Benchmark Systems Inc, a cloud-based provider of healthcare workflow automation solutions. CloudMD has also signed a binding term sheet to acquire an integrated, Employee Assistance Program solution to offer physical and mental health support. Two more companies that have been acquired include iMD Health Group Corp. and Re:Function Health Group Inc.

Key Takeaways

  • COVID-19 has caused severe limitations and challenges in the delivery of healthcare. The added pressure of lockdowns and social distancing has made physical visits to the clinic a cumbersome process that involves an inordinate amount of time and effort. Platforms such as CloudMD simplify the process for the patients as well as the doctors by removing bottlenecks and offering comprehensive solutions at the click of a button, from the convenience of one’s home.
  • The Company is targeting multiple revenue streams by focussing on both the consumer as well as the enterprise business segment. Tie-ups with insurance companies, employers and pharmacies on one hand and using a hybrid clinic strategy to tap into remote locations will help increase its footprint across North America. It also offers kiosks as part of its on demand virtual care that not only provides a recurring rental income but also attract more traffic to its virtual clinic. Other services that generate revenue include, B2B SaaS solutions, counselling and big data for third parties etc.
  • CloudMD offers Turnkey solutions in the form of Cloudpractice, a cloud-based electronic medical records system (EMR) and billing software that is intended to streamline medical practice for physicians across North America. JUNO EMR, one of its EMR solution products, has been adopted by 376 clinics across 8 provinces as per the Company. This will help the Company tap a fast growing market for SaaS-based solutions in the healthcare field.
  • The Company is focussed on its expansion in the North American market. CloudMD has entered into a reseller agreement with IDYA4, a leading integration solution provider within the U.S government and private sector. It has some key partnerships in place such as the Homeland Securities, Department of Justice, U.S health and Human Services and Deloitte to name a few and also intends to make inroads into remote area and correctional facilities through its kiosks.
  • CloudMD is also developing an Artificial Intelligence based Medical Office Assistant that can reduce cumbersome non-patient care activities for the clinic staff and improve administrative timelines and overheads.
  • Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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