KELOWNA, BC, Nov. 25, 2014 /CNW/ - QHR Corporation (TSX-V: QHR) ("QHR" or the "Company") a leader in Healthcare Information Technology and Solutions, is pleased to announce the completion of its acquisition of Medeo Corporation ("Medeo"), a Vancouver-based virtual care technology company.
As originally announced on November 10, 2014, the purchase of Medeo was subject to TSX Venture Exchange and Medeo shareholder approval. The TSX Venture Exchange accepted the transaction on November 18, 2014 and the Medeo shareholders unanimously approved it on November 21, 2014.
"We are excited to bring Medeo on board to help accelerate our strategy for patient engagement and to deliver a healthcare platform, securely in the cloud, spanning the spectrum of clinics and devices. We expect that Medeo's nimble telemedicine technology, combined with our industry-leading Accuro®EMR, will lead to improved patient-centric health, greater cost-benefit for users and improvement of the health system as a whole," said Al Hildebrandt, President and CEO of QHR. "We believe we can leverage Medeo's technology to cross sell QHR's 10,000 plus physician client base across Canada while simultaneously providing an attractive entry point for other Canadian physicians not currently on QHR's EMR platform. Medeo's mobile-oriented service has the ability to enter new global markets with a lower cost of entry."
In exchange for all of the issued and outstanding securities of Medeo, QHR paid $2.25 million in cash and it issued 1,000,000 QHR common shares ("Purchase Shares"), all of which will be held in escrow for 12 months (collectively, the "Purchase Price"). Ten percent of the Purchase Price (consisting of both cash and Purchase Shares) has been held back to secure an indemnity against breach of any Medeo representation or warranty discovered within six months of the closing. When the hold-back expires, the balance of the cash portion of the Purchase Price will be distributed to the Medeo stakeholders however all of the Purchase Shares will continue to be held in escrow for the balance of the 12 month escrow.
The Medeo acquisition represents an important step forward for QHR's leadership position in secure network-based technologies for healthcare, delivering more value to clinical practices and expanding the ability of providers to engage with patients. Medeo's cloud-based suite, including secure messaging and video consultation technology, was designed with input from hundreds of providers and adds the ability to improve continuity of care with benefits both to patients and providers. Medeo solutions have been accessed by more than 30,000 patient users. Since introducing its monthly subscription-based SaaS (software-as-a-service) offering in early May of 2014, over 200 healthcare providers have already subscribed, which should help drive longer-term recurring revenue.
Telemedicine and mHealth are making their way into many medical facilities, changing the way healthcare is delivered, for both provider and patient. According to Dr. Sanjeev Goel, M.D., F.C.F.P., lead physician of the Wise Elephant Family Health Team in Brampton Ontario and founder of the Health Quality Innovation Collaborative (HQIC), "When I first met the Medeo people and looked at the technology, it affirmed that we are at the forefront of a change in the delivery of care and within the physician and patient in-clinic examining room experience. Caring for patients using virtual care when appropriate just makes sense. It's time to provide more timely patient care for certain types of medical situations, instead of clogging up waiting rooms and the roads to physically visit a physician."
The operations of QHR and Medeo align with the evolving direction of healthcare technology embracing secure, network-based technologies for virtual care and improved patient engagement through any device. "A combined Medeo and QHR allows for product development toward our goals of improving access to care and delivering innovative solutions for healthcare providers. Joining QHR affords Medeo the opportunities to expand into more markets and to integrate with their market-leading Accuro EMR" said Michael Dingle, President of Medeo.
Michael Checkley, General Manager of QHR's EMR Division said that, "with so many clinics across Canada using Accuro more than any other Electronic Medical Record (EMR) platform in the country, Medeo presents a unique opportunity. We are confident that we can capitalize on the opportunity by extending the benefits of our Accuro platform to a greater number of patients, connecting them with their healthcare providers online using patient online booking, medical record sharing and Medeo secure video conferencing." Mr. Checkley went on to say that he is looking forward to the synergies that the two development teams can bring to the effort to advance both platforms.
All of Medeo's 19 employees including their advanced technology development team have signed new agreements to continue working with Medeo Corporation, now a subsidiary company of QHR Technologies. The business operations will remain in Vancouver, and the division will be integrated in all aspects of product, markets covered and clients served with the other QHR operations. Michael Dingle will direct all Medeo related activities as President of Medeo Corporation, reporting to QHR CEO Al Hildebrandt and will join QHR's senior management team.
Further information about QHR can be found at www.QHRtechnologies.com
Further information about Medeo can be found at www.medeohealth.com
About QHR Corporation
QHR is a leading healthcare IT and solutions company in the following markets:
QHR's Accuro®EMR is a connected platform that provides electronic medical records, billing and scheduling for family physicians, medical specialists, and surgeons, that is a key component in the move throughout Canada to provide electronic healthcare records for all Canadians. QHR provides on-site and off-site (ASP) hosting capabilities for the EMR market. QHR has more healthcare providers on its Accuro platform than any other vendor in Canada.
QHR also provides best in class clearinghouse services through its SoftCare brand, supporting payers and assisting healthcare providers to exchange claim information accurately for health claim reimbursement. SoftCare provides a suite of healthcare interoperability solutions (EDI and Clearinghouse), medical billing and professional services. These services help clients navigate and simplify the complex transaction integration processes required for health plan enrollment, health insurance eligibility, and health insurance claims through to payment remittance with their trading partners. SoftCare is marketed primarily in the US.
"Enabling Healthcare Providers to be the Centre of Connected Patient Care"
About Medeo Corporation
Medeo is a BC-based company with its head office in Vancouver. Founded in October 2012, Medeo has an innovative system designed and built by physicians and developers in an effort to improve access, efficiency and quality of care for patients and their providers. The Medeo virtual care platform, available to healthcare providers for a monthly fee, allows providers to connect with their patients through cloud-based secure online messaging, video conferencing and telehealth workflows. It was created to equip healthcare professionals with secure, mobile technology that supports access to care and improves the provision of healthcare delivery.
Legal Notice Regarding Forward Looking Statements
This news release contains "forward looking statements". Forward-looking statements are projections of financial performance or future events. Forward-looking statements can be identified by the use of words such as "expect", "anticipate", "intend", "plan", "believe", "estimate" and words of similar meaning. Forward-looking statements are based on management's current expectations and assumptions and they are subject to risks that may cause actual results to differ materially from those expressed or implied by such forward looking statements. Forward-looking statements in this news release include those concerning QHR's belief that the addition of the Medeo team and technology will lead to improved patient-centric health, greater cost benefit for users and improvement of the health system as a whole, its belief that it can leverage Medeo's technology to cross sell Accuro and provide an attractive entry for other physicians not currently on Accuro, and that the combination will allow for continued innovation and product development. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statement. Risks that may prevent or delay the forward looking statements from coming to fruition include the possibility that there are unanticipated factors that make it more difficult to integrate the Medeo technology, as well as market factors that may increase costs or time to market. QHR is a technology business development enterprise where investment and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. It is our policy not to update forward looking statements except to the extent required under applicable securities laws. Further information on the Company is available at www.sedar.com or at the Company's website, www.QHRtechnologies.com.
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.
SOURCE: QHR Corporation
For further information: Al Hildebrandt, President & CEO, 250-979-1701, [email protected]; Jerry Diener, VP Finance & CFO, 250-979-1722, [email protected]; Jim Wilson, VP Marketing & Communications , 416-220-7484, [email protected]