During the last year, we have been closely monitoring the healthcare technology market and consider this to be an underappreciated opportunity. As the Baby Boomer generation continues to age, demand for health care services will significantly increase and this creates a great opportunity for companies focused on this sector.
One company that has been laser focused on this burgeoning opportunity is Premier Health Group Inc., (PHGI.CN) (PHGRF) through its wholly-owned subsidiary, HealthVue. This is an emerging opportunity and we are closely monitoring this company.
In August, Premier Health acquired HealthVue Medical Clinics and thus entered the primary care clinic and healthcare technology business. HealthVue is a group of four Vancouver-based fully integrated, paperless and electronic medical record based medical clinics with a 10-year history, 22 healthcare professionals and over 100,000 active patients.
During the last three years, the clinics have recorded strong revenue growth (more than 25% on a year-over-year basis). 2018 has been a strong year for the company which has reported more than 36,000 patient visits so far this year. In the fourth quarter, HealthVue will open its 5th clinic and we expect this to help drive revenue growth.
HealthVue is focused on using proprietary technology to deliver quality healthcare through the combination of connected primary care clinics with telemedicine and artificial intelligence (AI). HealthVue currently has an ecosystem of over 100,000 active patients and has plans to rapidly increase that number through growth initiatives taking place both domestically and internationally. The HealthVue team has a strong track record of successfully creating value in healthcare and technology enterprises and this is an important aspect of the story.
Forms Strategic Relationship with Reliq Health
Earlier this month, Premier Health Group announced a strategic relationship with Reliq Health Technologies Inc. (RHT.V) (RQHTF), to serve as Premier’s exclusive technology partner. Reliq is a technology company that develops innovative mobile health and telemedicine solutions for the community-based healthcare market and will provide Premier’s HealthVue primary care clinics with a HealthVue-branded telemedicine, remote monitoring & AI solution for its clinical staff and more than 100,000 active patients. HealthVue expects to make the first version of the app available to their patients in the fourth quarter of 2018.
We are favorable on the combined talents of the companies and are bullish on their growth prospects. Incorporating Reliq’s technology platform into Premier’s clinics will allow HealthVue to improve access to care and convenience for patients, and support HealthVue’s goal of rapidly increasing their patient numbers and practice revenues. The companies will share in new practice revenue streams created by the implementation of this technology platform.
The HealthVue patient app powered by Reliq Health’s platform will allow patients to book appointments, see their general practitioner or a specialist via telemedicine, review their own chart, chat with clinic staff and pharmacists, refill prescriptions and share health data collected in the home with their HealthVue care team. This is an attractive solution and we expect to see it gain traction within the community-based healthcare market.
There are significant synergies that can be created for both companies and we are monitoring how the teams execute from here. From a geographic standpoint, this relationship enhances the reach of both companies and clearly supports its growth potential.
A Company Worth Watching
Earlier this month, Premier issued a corporate update and we are favorable on its transparency. The company is well capitalized after completing a $3.55 million financing in August. Premier Health does not hold any debt and has enough capital to make strategic acquisitions of additional clinics and construct new clinics and this is an important aspect of the story.
Premier Health is focused on expanding its reach and is currently reviewing a pipeline of strategic clinic acquisitions and scouting new locations. The company expects to close on two of these opportunities in the fourth quarter and this would be a significant catalyst.
The relationship with Reliq Health Technologies is significant and we are favorable on the growth prospects going forward. The shares have come off its recent highs and have been trending lower. We are monitoring this opportunity and please reach out to email@example.com to learn more