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 applauds recent actions by the provinces of Ontario, Alberta, and Manitoba to increase reimbursement rates affecting primary care, specialized care, and diagnostic consultation codes. These new multi-pronged investments support a holistic approach to care that mirrors WELL's own values in assisting the entire healthcare sector.
- Improvements in reimbursement are an important and needed strategy to support healthcare providers across Canada and in recent years have not been in line with annual inflation rates causing issues with attracting and retaining physicians.
- WELL expects improvements in organic growth as a result of its support and revenue share with physicians in addition to its clinic absorption program. WELL has provided more detailed disclosure of its organic growth between same clinic vs. absorption growth over the past year, demonstrating 15.6% organic growth overall in WELL's Canadian primary care business boosted by clinic absorptions.
VANCOUVER, BC, March 25, 2024 /CNW/ - WELL Health Technologies Corp. (TSX: WELL) ("the Company" or "WELL"), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce its support of the recently announced reimbursement policies from a number of key Canadian provinces where WELL has significant clinical operations.
In a significant move towards bolstering the healthcare 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 multi-pronged 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 healthcare 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 healthcare 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 healthcare 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 healthcare 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 healthcare delivery. We understand other provinces across Canada where WELL currently does not have significant clinical operations (eg. 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 our commitment to enhancing healthcare. 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 our healthcare partners and ultimately Canadian patients.
Michael Frankel, Chief Medical Officer and President of Canadian Clinics for WELL Health commented, "As a practicing 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 burn out."
Ontario's efforts to improve reimbursement rates have been particularly noteworthy. The province has implemented a 2.8% 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, CEO 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% global increase and is applicable across the board for diagnostic imaging, consultation, and all reporting reimbursement fees."
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% increase in physician compensation, including payment for indirect patient care and panel payments, marking a significant improvement in supporting healthcare providers in the province. In Q4 2023, WELL added the Manitoba Clinic, the largest clinic in Manitoba to its network.
Alberta has also taken steps to support its healthcare workers by implementing a new master agreement that spans four years starting in 2022. This agreement includes a guaranteed 1% 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 healthcare providers. Last year, WELL added 5 new clinics Alberta clinics, all based in the greater Calgary area.
Further to WELL's 2023 financial results reported last week, WELL is pleased to announce the Company achieved 15.6% total organic growth in its primary care clinics in 2023, comprised of 10.9% same clinic organic growth and 4.7% growth from its clinic absorption model. Total organic growth for all Canadian Clinics was 11.1%, comprised of 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 burn-out, 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 healthcare 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 Growth1 |
15.6 % |
Same-Clinic Growth |
6.8 % |
Absorption Growth |
0.0 % |
Total Specialized Care Organic Growth2 |
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 healthcare providers. This includes new AI 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.
Footnotes:
1. Primary care organic growth includes WELL's primary care, longevity+, allied health, and virtual care services. |
2. Specialized Care organic growth includes WELL's Diagnostic Centres. |
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare 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 healthcare providers between the US and Canada and power the largest owned and operated healthcare 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". To learn more about WELL, please visit: www.well.company.
SOURCE WELL Health Technologies Corp.
Tyler Baba, Investor Relations, Manager, [email protected], 604-628-7266
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