TORONTO, Sept. 2, 2015 /CNW/ - Syncordia Technologies and Healthcare Solutions, Corp. (TSXV: SYN) ("Syncordia" or the "Company") reported that on September 1, 2015 the Company received notice of termination from Air Medical Group Holdings, Inc. ("AMGH") of the customer contracts of two AMGH entities, REACH Air Medical Holdings ("Reach") and Summit Air Ambulance, LLC ("Summit"), with Health Services Integration, Inc. ("HSI"), a wholly owned subsidiary of the Company.
Pursuant to the notice, HSI will continue to process new claims until November 30, 2015, after which HSI will only process the billing and collection of then-existing claims until May 30, 2016.
Syncordia acquired HSI effective October 31, 2014. For the three month period ended June 30, 2015, aggregate revenue from Reach and Summit was $1,365,327. This revenue is reported by Syncordia within the Company's RCM segment.
While this loss will begin to impact revenue in calendar year 2016, management believes that a combination of newly signed contracts, additional near term contract wins, and current lean initiatives will offset the loss of the Reach and Summit contracts and management's profits expectations have not changed. As at June 30, 2015, the Company had $10,286,259 of cash and cash equivalents.
Forward Looking Statements
Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Syncordia or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements, including the Company's inability to sign new contracts and implement lean initiatives. Additional risk factors are found in the Company's recently filed first quarter 2016 management's discussion and analysis of financial condition and results of operations. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and we assume no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
About Syncordia Technologies and Healthcare Solutions, Corp.
We are a technology enhanced revenue cycle management ("RCM") company focused on underserved niche segments of the healthcare industry. Our growth strategy is to acquire RCM businesses with and without software and, improve their profitability by increasing revenues and operating efficiencies using our software, and in time, commercializing the Syncordia Cloud, our cloud-based software offering, to provide customer demanded turn-key solutions from a single provider and to address compelling RCM market opportunities.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Syncordia Technologies and Healthcare Solutions, Corp.
For further information: Michael Franks, Chief Executive Officer, (647) 350-7962, [email protected]; Nicholas Badder, Director of Corporate Development and Investor Relations, (647) 308-1201, [email protected]