QHR Sells RCM Assets to MTBC
Jul 14, 2015, 08:00 ET
KELOWNA, BC, July 14, 2015 /CNW/ - (TSX-V: QHR) QHR Corporation ("QHR" or the "Company"), a leader in the healthcare information technology sector, today announced that it has sold substantially all of the assets and operations of its U.S. based Billing Services, Clearinghouse, Tradelink EDI businesses (collectively, the "RCM Assets") to Medical Transcription Billing, Corp. ("MTBC"), a U.S. publicly traded company (NASDAQ:MTBC) with its executive offices located in New Jersey.
Under the agreement, MTBC acquired substantially all of QHR's RCM Assets, including customer relationships, products, related intellectual property, and some of its employees in exchange for a cash purchase price in an amount to be determined and paid over an earn out period of 36 months from closing. QHR does not anticipate that proceeds from this transaction will be material. The primary benefit of this transaction lies in cost savings, as part of an overall restructuring effort to save $1.6 to $2.0 million in annualized expenses.
Mike Checkley, President and CEO of QHR, said "QHR's strategy is to focus on our core Healthcare Technology including Electronic Medical Records (EMR), Virtual Care, Secure Messaging, Online Booking and Patient access to medical records. MTBC has the structure and vision to take the RCM business forward and we see them as a great fit for the customers."
On behalf of the Board of Directors
Mike Checkley, President & CEO
About QHR Corporation
QHR is a leader in Healthcare Technology, empowering providers and connecting patients. With an 11-year track record offering what is now the single leading Electronic Medical Records platform in Canada, QHR has a suite of complementary offerings that empower health professionals and drive the Company's growth. The Company's technologies and services enable secure medical records management for clinical environments, empower health providers with tools for virtual care including secure video and messaging, and tools for clinic management including scheduling, billing, and patient management, Health providers choose QHR to drive efficiencies within their practice and improve the quality of care delivered to patients.
Legal Notice Regarding Forward Looking Statements
This news release may contain "forward looking statements" within the meaning of applicable Canadian securities legislation. 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. Forward-looking statements in this news release include those concerning the Company's belief that the sale of its RCM Assets will result in cost savings and improve overall profitability.
Risks that may prevent or delay the forward looking statements from coming to fruition include the possibility that the Company may suffer unanticipated costs or expenses in effecting its proposed restructure, that it may not offer products that are acceptable to industry regulators or customers; competitors may offer better or cheaper products; it may not be able to raise sufficient capital to improve products to remain competitive; changing regulatory requirements may prevent the Company's products from being sold as expected; it may not be able to attract or retain key personnel; its technology may become obsolete; orders could be cancelled or delayed and market factors may increase costs more than expected. 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 the Company's 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: Mike Checkley, President & CEO, 250.979.1709, [email protected]; Jerry Diener, CFO & VP Finance, 250.979.1722, [email protected]
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