Healthscreen to acquire Medical
ST. CATHARINES, Ont. – Healthscreen Solutions Inc. announced that it has
entered into a letter of intent to acquire at least 75% and up to 100%
of Medical Telecom Corp., a private company located in Toronto. The
acquisition of MTC and its brand “CallerMD” (www.callermd.com)
is expected to close on or before April 30, 2007.
Healthscreen and MTC signed an agreement in October 2006, whereby the
two companies agreed to endorse each other’s products and sell them to
the other’s consumer base. The vertical integration of MTC is the next
step in this business relationship and will augment Healthscreen’s
existing suite of billing and scheduling services, and its popular
electronic medical records (“EMR”) software, by providing enhanced
practice management services to physicians across Ontario.
MTC’s CallerMD provides 450 Ontario physicians with a billing system for
uninsured medical services such as telephone advice, phone in
prescription renewals and sick notes. Physicians often spend an hour or
more each day providing uninsured medical services to their patients
with only a fraction billing effectively for these services.
“Healthscreen is a natural choice for us as they are a leading EMR
provider and have strong brand recognition in Ontario,” said Justin
Belobaba, President of MTC. “The combined strengths of our businesses
will provide tremendous benefits to practicing physicians – both in
terms of increased revenue and improved operating efficiencies.”
The acquisition is expected to expand Healthscreen’s market and may
increase revenues by cross-promoting the Company’s practice management
services and EMR software with CallerMD’s uninsured billing system to
the newly merged customer list.
MTC is paid approximately 15% of recovered revenues from each doctor for
its service. MTC has experienced success in forming alliances with large
health organizations such as the Coalition of Family Physicians and the
Ontario Medical Association’s Section of Family Medicine.
Healthscreen and MTC will continue this strategy of leveraging
relationships with credible health organizations to educate doctors on
the benefits of outsourced practice management services.
thrilled to have MTC join us in furthering our efforts to become a
provider of enhanced practice management services to clinics across
Canada,” said Dr. Bruce Rosenberg (pictured),
Healthscreen’s President. “In addition to our EMR software and MTC’s
CallerMD billing system, we will continue seeking new high margin
products and services that will deliver exceptional value to our
customers while impacting our bottom line.”
When the proposed acquisition closes, Justin Belobaba, President of MTC,
will be appointed President and Chief Executive Officer of Healthscreen
and Dr. Bruce Rosenberg, the current President of Healthscreen, will be
appointed Vice President of Business Development leading the company
into its next stage of growth. The board of directors of Healthscreen
will not change.
The proposed acquisition and private placement are subject to a number
of conditions including the approval of the TSX Venture Exchange, the
completion of satisfactory due diligence investigations by both
Healthscreen and MTC, the negotiation of a definitive agreement and
approval by the boards of directors of both parties.
Healthscreen has had six consecutive quarters of strong fiscal
performance and with the addition of MTC’s potential sales growth and
customer acquisition, the Company believes it is well positioned to
become a leading full service provider of clinic management services for
physicians across Canada.
About Healthscreen Solutions Inc.
Healthscreen Solutions (www.healthscreen.com)
was among the first Electronic Medical Records (EMR) providers to create
leading edge software that support digitalization and network
connectivity solutions for a growing list of research groups and
community physicians consisting of over 1600 sites. The Company serves
thousands of physicians and handles more than $1.5 billion in healthcare
transactions a year.