- New division to address the growing needs and investments being made in navigation of healthcare
- Led by industry experts with over 70 years combined experience working in government and public sector roles
- Embedding digital assets, including new comprehensive platform, mental health coach, therapy and iCBT, to ensure access and personalized healthcare
- Significant U.S. Government contract wins with NYC Department of Education and opioid crisis support state-wide in North Carolina
- Diverse portfolio of existing public sector customers; important driver of organic growth strategy across North America
VANCOUVER, British Columbia, March 03, 2022 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) ("CloudMD" or the "Company"), a healthcare technology and innovative health services company transforming the delivery of care, is excited to announce its newly formed Public Sector Division and recent customer contracts awarded from various state, local, and public sector organizations across North America. These contracts provide meaningful revenue diversification for the Company and opportunities to accelerate technology and service integration. The new division will also create cross-selling opportunities to integrate other services and solutions and provides a framework to continue scaling CloudMD's integrated health services platform across North America.
The Public Sector Division combines experience in winning large-scale RFPs and contracts with an extensive history of successfully servicing public sector organizations across North America. There is growing investment from the public sector aimed at reducing wait lists, improving mental health and wellness, addressing anxiety, depression, post-traumatic stress and substance use issues. Through technology and efficient use of its health network providers, CloudMD is changing the way healthcare is delivered to address these issues. The Company already has a diverse portfolio of clients within the public sector, and this dedicated division is an important driver of CloudMD's organic growth going forward.
Through its interoperability platform, the Company signed a contract to provide integration and technology services to the New York City Department of Education to support policy, process, and governance implementation. The NYC Department of Education is one of the largest educational agencies in the United States with over 1.2 million students.
The Company has also been awarded a contract for its Substance Use Disorder ("SUD") solution to support the opioid crisis in North Carolina. The SUD solution utilizes CloudMD's patented Real Time Intervention Platform (RTIP), which is expected to be utilized across the country to help government agencies combat the Opioid Epidemic that is currently sweeping through North America. The SUD solution includes real-time risk identification tools to enable multi-disciplinary teams to provide real time intervention to help individuals with opioid issues get back on track.
In addition, CloudMD's Mental Health Support Solutions service offering confirmed 107 new contracts in January and February, covering up to 50,000 new employees under subscription services. CloudMD has added several contracts within the Public Sector Division including:
- Subscription iCBT services for a major college employer in the Atlantic region of Canada
- Three new Employee and Family Assistance Programs (EFAP) contracts for townships and municipalities across Canada
- Mental Heath Coaching for the employees of a major Ontario university
CloudMD also continues to receive strong adoption and referrals from the brokers/advisor markets and has a strong pipeline of customers across North America.
"As a lifelong mental health caregiver, I have seen the toll stigma and lack of access to services can take on families. As a long time public servant, I saw the impact on people, our healthcare system and our economy. People need supports wherever and whenever they are ready - at home, at work, at school - and I am proud to be working with CloudMD and our public sector patient and employer partners across North America to provide effective, holistic, and timely care that improves health equity for patients, students, workers and their families," said Colin Andersen, Head of the Public Sector Division at CloudMD. "We have already made great progress since establishing our Public Sector Division and integrating MindBeacon into CloudMD's health care offerings. I'm excited about the learnings our experienced US team brings to Canada and vice versa. Our comprehensive platform connects individuals to proven treatment that is outcomes-based, readily accessible and ideally positioned to meet the growing health and wellness needs of individuals and organizations alike."
"We are focused on creating shareholder and client value through embedding technology in delivery of healthcare. This is aligned to our core purpose of creating innovation in access to care and healthcare navigation," commented Karen Adams, President of CloudMD. "The public sector is recognizing the importance of investing in mental health solutions that will reduce wait times, improve access with a lens on health outcomes. We are fortunate to have the expertise to work with the public sector to solve these problems and deliver an outcome-based ROI."
Essam Hamza, CEO of CloudMD added, "As we look forward, I am excited about the future of CloudMD. The combined companies provide incredible depth of expertise, leadership and management that builds the operational structure needed to evolve CloudMD for the next level of growth. Our path to profitability is within sight and we have assembled a leading executive management team that is extremely capable of driving organic growth. Through our ongoing integration efforts, we are well positioned to accelerate our expansion and scale the business."
The new division is led by Colin Andersen, Head of Public Sector Strategy, Robert McKay, Director, Public Sector Product Development and Sharad Rao, President, IDYA4, who together, bring over 70 years collective experience working in government and public sector roles.
Colin Andersen joins CloudMD's executive team from MindBeacon where he was responsible for MindBeacon's partnerships with all levels of government, post-secondary institutions, public sector employers and workers' compensation boards and all parts of the healthcare ecosystem. Previously, Colin was CEO of the Ontario Power Authority and prior to that Deputy Minister of Finance; Revenue; and Policy, Cabinet Office; Acting Deputy Minister as well as Associate Deputy Minister of Health and Long-Term Care; and Secretary of Treasury Board, all with the Ontario government.
Robert McKay brings extensive experience in senior roles leading large-scale Government projects for the Ministry of Health and Long-Term Care in Ontario, including the provinces Psychotherapy Program as well as Cancer Care Ontario's Integrated Cancer Screening Program.
Sharad Rao is a senior executive focused on process and technology in the Public Sector arena with State, City and Federal Governments in the United States. Notably, he was a Senior Executive with Deloitte Consulting, leading the Justice and Public Safety segment of the law and justice industry segment for North America. He has overseen several national projects which involved the integration of disparate systems across all 50 states, aggregating data and providing insights to various agencies to take pro-active action.
CloudMD Software & Services Inc. also announces that it issued an aggregate of 18,000 common shares (the "Compensation Shares") to the Company's former Chief Medical Officer, Dr. David Ostrow, on February 2, 2022. Dr. Ostrow provided mentoring and advisory services to the Company, as initially announced in a news release dated November 19, 2019. The Compensation Shares were issued as settlement for indebtedness owed to Dr. Ostrow arising from his consulting agreement with the Company for the period from November 1, 2020, to October 31, 2021.
The Compensation Shares have a deemed price of $1.16 per share, which is the discounted market price pursuant to the policies of the TSX Venture Exchange, based on the closing price of the Company's common shares on TSX Venture Exchange on October 31, 2021, the last trading day on which Dr. Ostrow's services were provided to the Company under the foregoing arrangement. The Compensation Shares are also subject to a four-month hold period.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient's healthcare journey and provides better access to care and improved outcomes. Through CloudMD's proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD's business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company's fastest growing division. CloudMD's Enterprise Health Solutions Division has built a leading employer healthcare solution, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America. For more information visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
VP, Investor Relations
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities laws. Forward-looking statements in this news release include, but are not limited to, statements regarding: the planned transition of the CFO and the Company's plan, including in respect of integration and cost optimization. These statements are based upon information currently available to CloudMD's management. All information that is not clearly historical in nature may constitute forward-looking statements. In some cases, forward-looking statements may be identified by the use of terms such as "forecast", "assumption" and other similar expressions or future or conditional terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and "should". Forward-looking statements contained in this news release are based on certain factors and assumptions made by management of CloudMD based on their current expectations, estimates, projections, assumptions and beliefs regarding their business and CloudMD does not provide any assurance that actual results will meet management's expectations. While management considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Such forward-looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Company's MD&A and most recent Annual Information Form (which are filed under the Company's issuer profile on SEDAR and can be accessed at www.sedar.com), that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although CloudMD has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking information. CloudMD does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.
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