KELOWNA, BC, Nov. 10, 2014 /CNW/ - QHR Corporation (TSX-V: QHR) ("QHR" or the "Company") a leader in Healthcare Information Technology and Solutions, is pleased to announce that it has entered into an Agreement ("Agreement") to purchase Medeo Corporation ("Medeo"), a Vancouver-based virtual care technology company.
"The acquisition of Medeo helps advance QHR's strategy to deliver a healthcare platform that spans the spectrum of clinics and devices, is deployed securely in the cloud and provides entry into new markets. QHR leads the Canadian marketplace with the country's largest single EMR platform (Accuro EMR). We are confident that the addition of this mHealth (mobile healthcare) solution will strengthen our leadership position and enhance the physician workflow experiences with their patients," said Al Hildebrandt, President and CEO of QHR.
Medeo, founded in October 2012, 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.
While Medeo's primary market since its inception has been British Columbia, QHR believes it will be able to leverage this technology to cross sell QHR's 10,000 plus physician client base across Canada. QHR also believes the Medeo solution can become an entry point for other Canadian physicians not currently on QHR's EMR system. In addition, Medeo's mobile-oriented service has the ability to enter new global markets with a low cost of entry.
At QHR's Annual General Meeting on September 16, 2014, QHR's management outlined its strategic direction for a connected platform that enables healthcare providers to be the centre of connected patient care. The following five strategic themes were presented:
- Evolution from a Healthcare IT company to a Healthcare IT and Solutions company
- Continuing focus on strengthening its core and expanding its leading physician platform
- Deliver patient engagement solutions that connect healthcare providers and patients through technology
- Three-pronged approach to strategic growth: organic, partnerships & alliances, and M&A
- Continually foster a culture for clients and employees that is passionate, innovative and agile
"We are very excited to have Medeo join the QHR family" Mr. Hildebrandt went on to say. "The acquisition of Medeo is fully aligned with our strategic goal of enabling healthcare providers to be the centre of connected care. We expect that Medeo's innovative and secure technology will further strengthen our leadership position in healthcare as we embrace the well-documented global technology trend towards mHealth, virtual visits and telemedicine. There are times when patients just can't physically get to their doctor to see them in person and Medeo's solution allows for virtual visits, which are the next best thing."
"Medeo has led the Canadian market in the development of the first Software-as-a-Service (SaaS) virtual healthcare platform. At the two-year mark in our business, we have developed a loyal clientele of leading Canadian healthcare providers," said Michael Dingle, President and CEO of Medeo. "Aligning with QHR allows for continued innovation and product development toward our goals of improving access to care, delivering a solution that provides for real time reductions in healthcare delivery costs, and contributing positively to the industry goal of improving secure workflow for patient care. QHR's national and international scope affords Medeo the opportunities to grow in more markets and to integrate with their market-leading EMR product Accuro. I know that our clients, team, and other stakeholders will benefit from our move to QHR."
The purchase price will consist of $2,225,000 in cash and 1,000,000 common shares of QHR, and will be distributed among the various Medeo stakeholders as provided for in the Agreement.
The purchase price is subject to a holdback to secure payment of claims if any are made by QHR pursuant to an indemnity, and all of the QHR common shares will be held in escrow for 12 months following the closing. Completion of the transaction is subject to customary conditions, including TSX Venture exchange approval and Medeo shareholder approval. More than two-thirds of the Medeo shareholders have already signed voting agreements committing to vote in favor of the transaction and the parties expect to close quickly.
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 privately held, BC-based company with its head office in Vancouver. Medeo was created to equip doctors with modern technology to ensure all Canadians have access to quality healthcare regardless of their location, mobility or time pressures.
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 statements about QHR's belief that it will be able to leverage the Medeo technology to cross sell, that the Medeo solution can become an entry point for other Canadian physicians not currently on the QHR platform, that Medeo's technology will strengthen QHR's leadership position in healthcare and, finally, the parties' belief that this transaction can close quickly. 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 unanticipated delays in obtaining the necessary approvals from third parties, as well as market factors that may increase our costs or time to market 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 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]