HEALTH TECHNOLOGY

Apollo Medical Holdings, Inc. Announces Acquisition of Value-Based Care Technology Platform Orma Health

Apollo Medical Holdings, Inc. | January 28, 2022

Apollo Medical Holdings, Inc. ("ApolloMed," and together with its subsidiaries and affiliated entities, the "Company"), a leading physician-centric, technology-powered healthcare company focused on enabling providers in the successful delivery of value-based care, today announced that it has acquired 100% of the fully diluted capitalization of Orma Health, Inc., and Provider Growth Solutions LLC (together, "Orma Health") in accordance with an agreement between ApolloMed, Orma Health and certain equity holders of Orma Health.

Founded in 2020, Orma Health has helped many physician groups transition to and succeed in the delivery of value-based care, enabling them to focus on their passion—caring for patients. Orma Health's real-time Clinical AI platform ingests data from multiple sources and utilizes advanced risk-stratification models to identify patients for various clinical programs, including remote patient monitoring ("RPM"), mental health support, chronic disease management, and more. Its clinical platform is also deeply integrated with Orma Health's proprietary RPM ecosystem, which consists of smart health devices and a suite of technology tools to help manage patients' health. Through its suite of AI-driven solutions, Orma Health currently serves over 4,000 aligned Medicare beneficiaries in a Direct Contracting Entity ("DCE") and over 2,500 patients in California, Nevada, Arizona and Texas through its RPM platform.

"We are excited about integrating Orma Health's business and technological capabilities with those of ApolloMed, tapping their leadership team's experience in working with DCEs and helping risk-bearing provider groups in the delivery of value-based care as we augment our capabilities to support providers in various Centers for Medicare & Medicaid Services Innovation Models. We believe this acquisition will further differentiate ApolloMed's technology platform and analytic capabilities while adding complementary lines of business to our operations that serve as business development opportunities."

Brandon Sim, Co-Chief Executive Officer of ApolloMed

Through leveraging its proprietary technology platform and extensive value-based care experience, ApolloMed has historically demonstrated tremendous success participating in Centers for Medicare & Medicaid Services ("CMS") Innovation Models. The acquisition of Orma Health serves to accelerate ApolloMed's product roadmap in developing an end-to-end technology platform that enables providers to succeed in all CMS Innovation Models, including DCE. Orma Health's real-time Clinical AI and RPM technologies will also be integrated into ApolloMed's existing solutions for its managed care populations and will further enhance ApolloMed's technology and analytics offering to its 1.2 million Medicare Advantage, Managed Medicaid, Commercial, and ACA members nationwide. This will allow ApolloMed providers to receive an additional layer of real-time, actionable insights and continue delivering high-quality care to their patients, tailored to their membership populations. As ApolloMed looks to expand its membership and enter new geographies, there are significant business development opportunities in deepening Orma Health's relationships with existing RPM providers and patients and extending that to ApolloMed's managed care and CMS Innovation Model solutions and offerings.

As part of the acquisition, Neil Ahuja, co-founder and Chief Executive Officer of Orma Health, will join ApolloMed as President, Provider Solutions and spearhead continued efforts to enable physicians to transition to value-based care models successfully. Yubin Park, co-founder and Chief Technology Officer of Orma Health, will join ApolloMed as Chief Analytics Officer and lead the continued development and integration of Orma Health's AI-driven provider enablement technology into ApolloMed's technology platform.

Mr. Ahuja commented, "We are pleased to be joining ApolloMed, bringing Orma Health's core competencies in developing innovative healthcare technologies that drive tangible outcomes for providers and their patients. ApolloMed has been a leading healthcare management company with a long history of successfully and profitably empowering physicians in the delivery of value-based care, making it the perfect partner for us. We look forward to contributing our expertise to expanding ApolloMed's MSO capabilities and the potential future opportunities that lie ahead."

Mr. Park added, "I am excited to begin working closely with the ApolloMed team on integrating Orma Health's technologies with that of ApolloMed. At Orma Health, we, like ApolloMed, believe that data is king. The information we gather and analyze about our members over the years is critical to our ability to deliver the best healthcare experience and outcomes for patients. We are thrilled that Orma Health is now a part of ApolloMed's worthy mission of empowering providers in delivering high-quality care and improved outcomes for its members."

According to the terms of the agreement, a portion of the purchase price was paid in cash to the equity holders of Orma Health upon the closing of the transaction, another portion was paid in ApolloMed stock to the equity holders of Orma Health upon the closing of the transaction, and the remainder of the purchase price is to be paid in a combination of cash and stock to the equity holders contingent upon Orma Health achieving certain operational milestones over the 18 months after the closing. The Company will fund the transaction from cash on hand and shares of ApolloMed stock.

About Apollo Medical Holdings, Inc.
ApolloMed is a leading physician-centric, technology-powered, risk-bearing healthcare company. Leveraging its proprietary end-to-end technology solutions, ApolloMed operates an integrated healthcare delivery platform that enables providers to successfully participate in value-based care arrangements, thus empowering them to deliver high quality care to patients in a cost-effective manner.

Headquartered in Alhambra, California, ApolloMed's subsidiaries and affiliates include management services organizations (MSOs), affiliated independent practice associations (IPAs), and a Next Generation Accountable Care Organization (NGACO). 

Spotlight

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Spotlight

Many biopharmaceutical companies are facing a challenging research and development R&D environment and increased competitive pressures. Their heavy reliance on a closed, traditional model of product development might stifle true innovation and may cause biopharma companies to lag behind their more creative peers. Companies in other industries have turned to open innovation OI – along a spectrum of openness that ranges from closed/traditional to open/emerging – as one way to successfully overcome many R&D and marketplace challenges by sourcing innovative ideas, knowledge, and new skills/technologies from outside their organization.

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Veritas Capital Completes Combination of Coronis Health and MiraMed Global Services

Veritas Capital | August 08, 2022

Veritas Capital a leading technology and government investor with deep healthcare expertise, announced that an affiliate of Veritas completed the combination of two complementary revenue cycle management businesses: Coronis Health and MiraMed Global Services. The combination creates a scaled RCM platform providing end-to-end technology-enabled solutions to a diverse set of healthcare providers across the U.S. The newly combined company benefits from meaningfully increased scale, end-to-end RCM capabilities across multiple specialties, and robust infrastructure with over 8,500 employees globally. The combined company will be led by Coronis CEO Stephen Grubbs. MiraMed’s founder and CEO Tony Mira will serve as Vice Chairman of the Board of Directors. Veritas has a proven track record of driving growth for companies within the healthcare technology market. The firm brings a culture of intense customer focus and accelerating growth through investment in R&D and product innovation. Coronis is a leading provider of end-to-end RCM solutions to U.S. healthcare providers including primary and specialty physician practices, anesthesia groups, laboratories, emergency medical services, behavioral health centers, FQHCs, and hospitals. Since its founding in 2015, Coronis has rapidly become an industry leader with an emphasis on quality, transparency, and customer satisfaction. Coronis’ solutions address the full RCM continuum for a patient’s journey, allowing clients to focus on delivering high quality patient care to communities they serve. Veritas acquired Coronis from 424 Capital and other minority shareholders. Founded by Tony and Sue Mira in 1979, MiraMed is a leading provider of end-to-end RCM and business process outsourcing services for anesthesia practices and commercial healthcare clients in the U.S. MiraMed delivers medical coding, billing, and receivables management solutions to regional anesthesia-focused physician practices and other commercial healthcare clients, supported by a highly strategic hybrid onshore/offshore delivery model. Veritas acquired MiraMed from the Mira family, who will retain an ownership position in the combined company. “This combination brings together two highly complementary businesses with a shared mission to improve operations for healthcare providers across the U.S. Coronis’ end-to-end RCM solutions paired with MiraMed’s expertise and global infrastructure creates a robust platform for growth in a highly fragmented market. We look forward to leveraging our expertise in healthcare technology to support the combined company and, in partnership with management, deliver innovative technology-based solutions to ensure the continued success of the company’s healthcare provider clients.” Ramzi Musallam, CEO and Managing Partner of Veritas Capital “We are thrilled to partner with Veritas Capital through this combination, which will better position us to help our clients focus on providing what’s most important – the absolute best patient care,” said Mr. Grubbs, CEO of Coronis. “MiraMed has a terrific team and value proposition, and we are confident that, with a larger platform and enhanced resources provided by Veritas, the combined company is poised for continued organic and inorganic growth to benefit our clients, employees, and partners." “Our family built MiraMed to serve the growing needs of our healthcare clients and their patients. By combining with Coronis, we created a new company with the scale, resources, and global infrastructure to provide an expanded set of solutions to our clients,” said Tony Mira, founder and CEO of MiraMed. “Together, we will expand our operational footprint to serve clients across various specialties and make investments in technology to enhance operations for our clients across the healthcare industry. I look forward to working with the talented team at Coronis, as well as Veritas, as we embark on this next chapter.” “Our investment in Coronis and partnership with Stephen and the entire management team firmly established how our playbook can create value in the healthcare technology sector,” said 424 Capital Managing Partner Walter Beinecke. “We welcome Veritas as the new stewards of Coronis and wish the team continued success.” Latham & Watkins LLP served as legal counsel to Veritas. Lincoln International LLC and TripleTree LLC served as financial advisors to Veritas. Guggenheim Securities LLC served as lead financial advisor and Whiteman Osterman & Hanna LLP served as legal counsel to Coronis. Gibson, Dunn & Crutcher LLP served as legal counsel to MiraMed. About Veritas Capital Veritas is a longstanding technology investor with a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to Veritas. We are proud stewards of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies. 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Sense and TECOmedical Sign Distribution Agreement for Germany, Austria, Switzerland

Sense Biodetection | September 02, 2022

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Trukera™ Medical Launches New ScoutPro™ Osmolarity System

Trukera Medical | September 13, 2022

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