Mr. Hamed Shahbazi reports

WELL HEALTH APPLAUDS IMPROVEMENTS IN REIMBURSEMENT RECENTLY ANNOUNCED FROM KEY PROVINCES AND SPEAKS TO IMPROVEMENTS IN ORGANIC GROWTH IN ITS PRIMARY CARE BUSINESS

Well Health Technologies Corp. supports the recently announced reimbursement policies from a number of key Canadian provinces where Well has significant clinical operations.

In a significant move toward bolstering the health care system, the provinces of Ontario, Alberta and Manitoba have announced increases in reimbursement rates for primary care, specialized care and diagnostic consultation codes. These new multipronged investments are designed to support a variety of care providers and promote a holistic approach to care, mirroring Well's values in assisting the entire health care sector. This follows last year's innovative Longitudinal Family Practice (LFP) reimbursement methodology implemented by British Columbia which was designed to boost funding for primary care physicians. All these adjustments are a response to the growing need for a robust support system for health care providers, aimed at addressing the challenges of inflation and the difficulties in attracting and retaining skilled physicians. Well strongly supports these initiatives, recognizing them as crucial steps toward enhancing the health care landscape in Canada.

The rationale behind these increases is multifaceted, focusing on the critical need to support family medicine and ensure that physicians can deliver primary care effectively. Inflation has significantly impacted the financial stability of health care providers, while supply issues in primary and diagnostic care have made it challenging to meet the needs of communities. By adjusting reimbursement rates, these provinces aim to alleviate these pressures, creating a more sustainable environment for health care delivery. The company understands other provinces across Canada where Well currently does not have significant clinical operations (for example Nova Scotia) have recently made similar updates and/or are considering similar support to demonstrate greater support for our community of primary care physicians. Well equally applauds these moves, reinforcing its commitment to enhancing health care. It is also important to note that new health accords signed by most provinces and territories with the federal government will continue to result in increased investment in both primary care and diagnostic services in order to relieve bottlenecks which will benefit Well's health care partners and ultimately Canadian patients.

Michael Frankel, chief medical officer and president of Canadian clinics for Well Health, commented: "As a practising physician, I am grateful, and I know many of my fellow physician colleagues are grateful, for these increases in reimbursement. This is a great start and I hope other provinces continue to focus on and sustain such improvements as well. Many physicians are struggling with cost increases and while increases in reimbursement are not a silver bullet, when combined with team-based care strategies, professional management like what is provided by companies such as Well, and tech enablement, we can make a real difference in once again attracting and retaining more doctors to primary care and alleviating many of their sources of burnout."

Ontario

Ontario's efforts to improve reimbursement rates have been particularly noteworthy. The province has implemented a 2.8-per-cent raise, retroactively applied, as part of its ongoing efforts to negotiate a new physician services agreement (PSA). There is an anticipation of a significant raise to match inflation over the past decade, with the goal of ensuring a steady flow of family doctors from medical schools. Ontario is Well's largest clinic market with over 84 primary and specialized care clinics located in 56 facilities.

Dina Sergi, chief executive officer of Well Health diagnostic centres, a division of Well Health Canadian Clinic group, commended the Ontario government's approach: "We commend the Ontario government for its willingness to take the profession's concerns to heart in reaching an agreement on the year 3 increase of the 2021-2024 PSA, and a commitment to support physicians and Ontarians in the ongoing negotiations for prospective agreements. The agreement provides a 2.8-per-cent global increase and is applicable across the board for diagnostic imaging, consultation and all reporting reimbursement fees."

Manitoba

Manitoba has introduced a new LFP model, which provides a blend of flexibility and support not seen in other provinces. Under this model, physicians are not required to choose exclusively between LFP and fee-for-service (FFS) models, allowing for a hybrid approach. This innovation is expected to result in a roughly 20-per-cent increase in physician compensation, including payment for indirect patient care and panel payments, marking a significant improvement in supporting health care providers in the province. In Q4 2023, Well added the Manitoba Clinic, the largest clinic in Manitoba, to its network.

Alberta

Alberta has also taken steps to support its health care workers by implementing a new master agreement that spans four years starting in 2022. This agreement includes a guaranteed 1-per-cent annual increase in compensation for the first three years, with the details for the fourth year's increase yet to be determined. This steady increase is a measure designed to keep pace with economic changes and support Alberta's health care providers. Last year, Well added five new clinics Alberta clinics, all based in the greater Calgary area.

Clinic absorption model drives additional organic growth

Further to Well's 2023 financial results reported last week, Well is pleased to announce the company achieved 15.6-per-cent total organic growth in its primary care clinics in 2023, comprising 10.9-per-cent same-clinic organic growth and 4.7-per-cent growth from its clinic absorption model. Total organic growth for all Canadian Clinics was 11.1 per cent, comprising Well's same clinic organic growth for both primary and specialized care, and the growth attributable to clinics added pursuant to Well's absorption model, which today is only prevalent in Well's primary care business, as shown in the table below.

Well's absorption model is a form of organic growth where Well has been able to add or recruit entire clinics, sometimes with multiple care providers, and their roster of patients to its network for nominal consideration. Doctors are facing such significant operational and technology challenges, administrative overhead and burnout, that they are now are seeking to join the Well network such that they can benefit from professional management and enhanced operational support. Well's national footprint, increasing brand recognition, extensive technology enablement and the strong support and value proposition that the company provides its health care providers makes joining Well's network a favourable choice for doctors.

  
   WELL CANADIAN CLINIC ORGANIC GROWTH       
                                        FY 2023

Same-clinic growth                       10.9%
Absorption growth                         4.7%
Total primary care organic growth        15.6%
                                               
Same-clinic growth                        6.8%
Absorption growth                         0.0%
Total specialized care organic growth     6.8%
                                               
Total same-clinic growth                  8.8%
Total absorption growth                   2.3%
Total Canadian clinic organic growth     11.1%

Well expects its organic growth in recruitment of absorption opportunities will continue to significantly grow in 2024. Well's goal is to maintain double digit organic growth in 2024 and beyond. Well's strategy to drive organic growth has mainly been to leverage tech enablement, professional management and team-based care strategies to ensure that physicians are well equipped to support their workload. Well has also recruited more care providers providing primary, specialized care and allied health at its various clinics resulting in incremental same-clinic growth.

The recent enhancements in reimbursement rates across Ontario, Manitoba and Alberta, will help sustain the level of investment and support that Well provides to the nation's health care providers. This includes new artificial-intelligence-powered innovations, such as Well AI Voice, Well AI Inbox Admin and Well AI Decision Support. Well's unique provider focused business model is working. By intensely focusing on supporting providers and ensuring that they can focus on providing care while the management of clinics, their staff, technology and operations is supported by professional staff, providers regain a substantial amount of time and energy. This allows them to see more patients and live a more balanced, and less frustrated work life.

About Well Health Technologies Corp.

Well's mission is to tech-enable health care providers. The company does this by developing the best technologies, services and support available, which ensures health care providers are empowered to positively impact patient outcomes. Well's comprehensive health care and digital platform includes extensive front-and-back-office management software applications that help physicians run and secure their practices. Well's solutions enable more than 34,000 health care providers between the United States and Canada and power the largest owned and operated health care ecosystem in Canada with more than 165 clinics supporting primary care, specialized care and diagnostic services. In the United States Well's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care and mental health. Well is publicly traded on the Toronto Stock Exchange under the symbol WELL and on the OTC Exchange under the symbol WHTCF.