Operations successfully integrated within three weeks of acquisition
Vancouver, British Columbia–(Newsfile Corp. – July 26, 2021) – Kovo HealthTech Corporation (TSXV: KOVO) (the “Company” “Kovo”) — a leader in health technology and Revenue Cycle Management (“RCM”) software and services — reports that it has exceeded anticipated timelines and successfully integrated operations of its newest acquisition, Midwest Medical Billing, Service Inc., (“Midwest”) ahead of schedule.
Smooth Transition Results in Immediate Accretive Revenue Growth
The Company took control of Midwest’s daily operation on July 1, 2021 and successfully completed monthly billings by the end of the first business day, confirms Kovo CEO Greg Noble.
As announced on July 20, 2021, Kovo expects fiscal revenue will be approximately 43% higher than in 2020 due to organic growth on its core RCM software and services business. On a consolidated basis, including its recent acquisition, the Company is forecasting proforma revenue between USD$4,700,000 to USD$5,100,000 for the year ending December 31, 2021 — which it expects to translate into revenue growth in the range of 56% to 69% versus 2020. (See www.SEDAR.com for more information).
“The Midwest and Kovo teams worked extremely hard pre- and post-closing to ensure a smooth transition of the business, which allowed us to exceed timelines and complete Midwest’s integration within three weeks,” explains Noble. “This is a testament to our strong operational, technology and customer service teams and their ability to consolidate RCM processes rapidly and efficiently,” he adds.
Kovo Actively Seeking Acquisition Growth Opportunities
Noble confirms that Kovo is actively seeking new acquisition opportunities for growth and estimates there are roughly 15,000 RCM specialist companies* — operating within the RCM software and services industry — that meet Kovo’s investment criteria.
About Revenue Cycle Management (RCM)
Kovo HealthTech Corporation is a growing healthcare technology company that specializes in RCM services and software for US healthcare clinics, hospitals and private practices. RCM is a process used by healthcare providers in the US and globally to digitally track and manage patient care registration, services, billing and payments in a seamless way. Effective RCM practices are essential to ensure health care settings maintain the financial viability that allows them to provide ongoing quality care for their patients. The Company’s focus is organic growth of its core RCM business and acquiring profitable RCM related businesses and systems within the US. Kovo optimizes acquired businesses by leveraging its over 20 years of operating experience and proprietary technology.
*source: Lawrence, Evans & Co. LLC
About Kovo HealthTech Corporation
Kovo is a leader in healthcare technology and Revenue Cycle Management software and services. Kovo creates, acquires and grows businesses to better the healthcare experience within the patient encounter continuum. To learn more about Kovo and to keep up-to-date on Kovo news, visit www.kovo.co.
For more information:
Greg Noble, CEO
Forward-Looking Information and Statements
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) concerning the Company and its subsidiaries within the meaning of applicable securities laws. Forward-looking information may relate to the future financial outlook and anticipated events or results of the Company and may include information regarding the Company’s financial position, business strategy, growth strategies, acquisition prospects and plans, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities or the markets in which the Company operates is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”, “budgets”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projects”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will” occur. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
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Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date made (or as of the date they are otherwise stated to be made). Any forward-looking statement that is made in this press release speaks only as of the date of such statement.
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