Hospital profitability, volumes struggled during 2018, with a few exceptions

Healthcare Finance | January 14, 2019

With 2018 now in the books, it's possible to see how certain trends played out in the world of healthcare. Kaufman Hall was certainly interested in examining the year that was, and in looking back, the firm found that while 2018 got off to a bad start, hospital volumes and profitability rebounded here and there -- though not nearly enough to make it a banner year. The summer months tended to be stronger on the profitability front, but Kaufman Hall's December Flash Report found it was the second month in a three-month period in which profitability declined. Operating EBITDA margin declined 54 basis points and operating margin declined 83 bps. This performance is being driven, in part, by declining volumes and utilization, increasing lengths of stay, and increasing expenses -- particularly for supplies and purchased services.

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"Lifespan, Rhode Island's first health system, was founded in 1994 by Rhode Island Hospital and The Miriam Hospital. A comprehensive, integrated, academic health system, Lifespan’s present partners also include RI Hospital’s Hasbro Children's Hospital , Bradley Hospital, and Newport Hospital.


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FUTURE OF HEALTHCARE

Ensemble Health Partners, in Partnership with Caduceus Capital Partners, Leads Series A Round for Janus Health

Ensemble Health Partners | December 15, 2021

Ensemble Health Partners, in partnership with Caduceus Capital Partners, led the $8 million Series A capital raise for Janus Health, a revenue cycle automation and decision support platform. Billions of dollars are left uncollected annually by healthcare providers due to poor methods and inconsistent human decision making in the revenue cycle process. Janus Health studies end-user behavior within the revenue cycle and uses advanced AI to determine the optimal path for each workflow. Janus then automates processes and end-to-end workflows using its scalable platform and delivers real-time predictive recommendations to guide human worker performance. “I invest in people first. I’ve known Brendan for a long time, and he has assembled an incredible team who are experts in the field. We see a lot of technology fads in healthcare, but I am always most concerned with delivering value and creating a meaningful impact for our clients and associates. As someone deeply entrenched in the revenue cycle world, I see tremendous potential for Janus to deliver on both fronts.” Judson Ivy, Founder, President and CEO, Ensemble Health Partners “Several factors, including labor shortages, shrinking reimbursements and more stable IT environments, are creating a ripe opportunity to transform the revenue cycle with artificial intelligence and automation,” said Brendan Downing, co-founder and CEO of Janus Health. “Janus Health offers a timely service that can have a significant impact for health systems struggling with these rising costs-to-collect and reimbursement challenges.” Health systems continue to struggle with a workforce shortage and lack of resources. A recent McKinsey & Company study showed that $180 billion could be saved in healthcare administration and finance costs with automated technology. Many health systems do not currently have revenue cycle automation, but plan to implement this technology in the next year. With Janus Health, managers and executives receive actionable insights into people, productivity and practices, allowing them to optimally allocate and manage resources. “The revenue cycle in healthcare is notoriously challenging. Billing and collections are especially complicated when you consider the various payors and parties involved in a transaction,” said Dave Vreeland, senior managing partner at Caduceus Capital Partners. “This area is one of the most labor-intensive in healthcare, and there is a huge opportunity for Janus to make a difference in the industry.” Jim Gaffney, EVP, strategy and corporate development at Ensemble Health Partners and Sue Tyler, venture partner at Caduceus Capital Partners will serve on the Janus Health board of directors. About Ensemble Health Partners Ensemble Health Partners is a leading provider of technology-enabled revenue cycle management solutions for health systems, including hospitals and affiliated physician groups. The company offers end-to-end revenue cycle solutions as well as a comprehensive suite of point solutions to clients across the country. About Caduceus Capital Partners, LLC Caduceus Capital Partners is a venture capital and private equity company focused on early-stage digital health investments. The Caduceus Capital Partners investment model actively supports portfolio companies from the first check to the exit phase with operational expertise and network access to potential customers and partners. About Janus Health Technologies Janus Health is leapfrogging the automation solutions of today by developing the only end-to-end process improvement platform that studies a revenue cycle operation to determine the optimal path of each workflow and rapidly builds intelligent automation and decision support with a single-click.

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HEALTH TECHNOLOGY

Mednow Enters Into Agreement to Acquire Mednow East Inc in Ontario

Mednow Inc. | March 08, 2022

Mednow Inc. Canada’s on-demand virtual pharmacy, is pleased to announce that the Company has entered into a share purchase agreement on March 4, 2021 with Mednow East Inc.and the shareholders of Mednow East, pursuant to which the Company shall acquire all of the issued and outstanding shares of Mednow East, in consideration for an aggregate cash payment of approximately C$65,578 and the Company’s agreement to convert approximately C$1,374,422 owed by Mednow East to the Company pursuant to a pharmacy agreement dated September 15, 2020, as amended October 30, 2020 into a non-interest bearing on-demand convertible promissory note. Mednow East is an Ontario company that operates an online pharmacy, delivering prescriptions in the Province of Ontario. Mednow East has its business headquarters in Toronto and employs Mednow’s marketing and technology platform for lead generation, prescription fulfillment and customer services pursuant to the Pharmacy Agreement. Strategically, Mednow is focused on building out a national pharmacy footprint and the acquisition of Mednow East, with their presence in Ontario, helps to accelerate these goals. Prior to this acquisition, Mednow entered into the Pharmacy Agreement with Mednow East, but post-acquisition, Mednow will own 100% of a pharmacy located in Ontario, which will allow Mednow to provide free same-day pharmaceutical delivery services in the GTA and surrounding areas, and free next-day delivery in the rest of Ontario. Upon closing of the Share Purchase Agreement, Mednow East’s revenue and expenses will be consolidated with those of Mednow and the Pharmacy Agreement between the two parties will be terminated. The debt of approximately C$1,374,422 extended to Mednow East by the Company was used to fund Mednow East’s working capital and provide support for its operations. As Amir Ali Reyhany-Bozorg and Felipe Campusano are directors of the Company and Karim Nassar is the Chief Executive Officer of the Company, and each are also shareholders of Mednow East, the transaction contemplated under the Share Purchase Agreement is a related party transaction under Multilateral Instrument 61-101 –Protection of Minority Securityholders in Special Transactions. The Company is exempt from the formal valuation and minority shareholder approval requirements imposed by MI 61-101 pursuant to the exemptions in section 5.5(a) and 5.7(a) of MI 61-101, as neither the fair market value of the Shares, nor the consideration paid therefor, exceeds 25% of the Company's market capitalization. The Transaction is subject to corporate and regulatory approvals, including TSX Venture Exchange approval. About Mednow Inc. Mednow is a healthcare technology company offering virtual access with a high-standard of care. Designed with accessibility and quality of care in mind, Mednow.ca provides virtual pharmacy and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer, and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions and vitamins by date and time, and doctor consultations.

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MEDICAL DEVICES

Adaptiiv collaborates with HP and Varian to enhance personalization in radiation oncology with 3D printed medical devices

Adaptiiv Medical Technologies Inc. | May 09, 2022

Adaptiiv Medical Technologies Inc. is collaborating with HP Inc. and Varian, a Siemens Healthineers company to advance the quality of and access to personalized cancer care for U.S. patients with 3D printed medical devices. HP's Multi Jet Fusion platform provides access to leading 3D printing technology that is used to produce high-quality, flexible, patient-specific parts at high throughput. HP 3D printing is suitable for use in healthcare because of the speed, quality, and economic advantages gained through HP's scalable manufacturing processes. "The combined technology scale of HP and Varian, along with the leading-edge personalization workflow of Adaptiiv, provides the improved solution that clinicians and patients deserve," said Louis Kim, Vice President, 3D Printing at HP. HP is proud to be a part of this collaboration to help advance the treatment of cancers worldwide." Adaptiiv will also work with Varian to expand access to personalized, patient-specific 3D printed medical devices. For more than 70 years, Varian has developed, built, and delivered innovative cancer care technologies and solutions for clinical partners around the globe to help them treat millions of patients each year. This agreement advances Varian's commitment to meeting evolving customer needs and improving the patient experience. "We are energized by Adaptiiv's innovation and this opportunity with HP to further expand our cancer care ecosystem. Addressing our customers' needs is our top priority, and we are confident that this commercial commitment will help us do just that by advancing interoperability with Adaptiiv's 3D printed medical devices for external beam radiation therapy," Ben Moga, Director, Strategic Alliances and Synergy Investments at Varian Earlier this year, Adaptiiv received U.S. FDA 510(k) clearance for the Adaptiiv On Demand service to manufacture and deliver 3D printed patient-specific medical devices. 3D printed medical devices conform to patient anatomy thereby improving the accuracy of dose delivery while the integration of Adaptiiv software into clinical workflows provides improved efficiencies, such as reducing patient set up time both in CT simulation and on the treatment unit. "This is a tremendous milestone for Adaptiiv's vision to democratize personalization in radiation treatment," said Adaptiiv CEO, Alex Dunphy. "Collaborating with brands like HP and Varian who stand for quality and innovation will ensure our solutions reach patients around the world. The last mile of radiation therapy needs to evolve and our solutions provide greater access to personalized care, while improving treatment and creating workflow efficiencies for cancer centres around the world." About Adaptiiv Adaptiiv Medical Technologies Inc. has a software platform that works in conjunction with 3D printing to create medical devices for use in radiation oncology. Adaptiiv is shaping the future of personalized healthcare through innovation and collaboration with industry leaders throughout the world.

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HEALTH TECHNOLOGY

PulsePoint Releases Next Generation Health Media Platform With Advanced Automation And AI

PulsePoint | July 06, 2021

PulsePoint, a technology company revolutionizing health decision-making in real-time, today announced the next generation launch of its digital media buying platform, Life by PulsePoint™. Its enhanced AI and automation simplifies and supercharges the media planning, activation, and optimization processes. Designed for the self-serve programmatic trader, these updates promote efficiencies and surface predictive and in-flight campaign analytics for quick strategic decisioning to yield higher media return on investment. Built upon PulsePoint's extensive data foundation, Genome™, that proactively uses microdata to capture attention when intent is signaled, Life is the leading healthcare end-to-end programmatic platform. Life's automated machine learning and AI allows marketers to quickly create highly-customized segments that classify populations in real-time, and deliver sequential messaging to drive customer actions in the moment and across the health journey. This next generation of the Life platform includes: • Advanced media planning innovations: Life offers an AI-powered forecasting tool used to run simulations to generate predictive performance metrics and intelligent audience insights. This makes it easier for marketers to preview budgets and ideate and adjust tactics to obtain their desired campaign outcomes, all before a single dollar is spent. Each forecast is powered by detailed supply and channel insights, like expected delivery, and campaign performance can be viewed by a variety of dimensions, including creative types, domains/apps, condition categories, healthcare professional specialties, geographies, among others. • Better campaign management with advanced dashboard: An automated and real-time view of line item performance and pacing gives traders a deeper, more granular look into their campaigns, making it easier for them to optimize their spend based on flight delivery and anticipate new incremental opportunities. The dashboard not only surfaces key numbers, but it also includes dynamic performance charts to uncover real-time campaign insights. • Turnkey PMP (private marketplaces) deal builder: Enhanced with turnkey end-to-end functionality, self-serve traders can now enable the deals that they negotiated directly with publishers and/or SSPs through Life's UI, decreasing the time it takes to launch PMPs. "Life was built for the healthcare marketer to simplify and optimize marketing campaigns," said Andrew Stark, CRO of PulsePoint. "Our newest capabilities increase efficiencies through advanced forecasting and real-time performance optimization, enabling more control and enhanced campaign management." Life by PulsePoint provides access to over 110 billion daily impressions across more than 2 million health pages, reaching 1.8M+ opted-in, verified healthcare professionals and over 90% of the online U.S. population. This release is just another step in PulsePoint's journey to deliver personalized messaging at each stage of the health journey using predictive insights built on real-time data. The company was recently acquired by Internet Brands, a KKR portfolio company and owner of WebMD Health Corp. PulsePoint's teams will continue to operate as their own division from their existing hubs in New York, San Francisco, and London. About PulsePoint PulsePoint is a leading technology company that uses real-world data in real-time to optimize campaign performance and revolutionize health decision-making. Leveraging proprietary datasets and methodology, PulsePoint targets healthcare professionals and patients with an unprecedented level of accuracy—delivering unparalleled results to the clients we serve.

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Spotlight

"Lifespan, Rhode Island's first health system, was founded in 1994 by Rhode Island Hospital and The Miriam Hospital. A comprehensive, integrated, academic health system, Lifespan’s present partners also include RI Hospital’s Hasbro Children's Hospital , Bradley Hospital, and Newport Hospital.

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