Assure Sets Record for Cash Collection and Procedures in Full-Year, Fourth Quarter 2020
DENVER, Jan. 11, 2021 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of intraoperative neuromonitoring services (“IONM”), announced an annual and quarterly record for cash collection and number of procedures in full-year and fourth quarter 2020.
John A. Farlinger, executive chairman and CEO said, “I am proud of the progress our billing and collections team has made and the success we have had in meeting our objectives in 2020. Since fully taking over the revenue cycle management function in February 2020 after our legacy 3rd party billing provider was terminated due to poor performance, Assure invested heavily in this area by hiring a seasoned leader, staffing a 20-person internal billing and collections team and migrating to a platform that has an automated and integrated process, transitioning from what had historically been an entirely manual system.”
Results and expectations relating to billing and collections include:
- The Company collected a record $23.9 million in full-year 2020. This included a record $6.5 million in the fourth quarter of 2020. Comparitively, in 2019, full-year cash collections was $15.9 million, including $2.4 million in the fourth quarter. The revenue figures referenced relate to a combination of technical IONM services and cash collected from Provider Network Entities (“PNEs”) for professional IONM services.
- For revenue related to technical IONM services only and excluding cash collected from PNEs for professional IONM services, which are recorded separately, the Company collected a record $13.8 million in full-year 2020. This included $3.7 million in the fourth quarter of 2020. Comparitively, in 2019, full-year cash collections was $8.0 million, including $1.3 million in the fourth quarter.
- Strong billing and collections have made the Company operationally cash flow positive for the period of March through December 2020.
- Assure’s 2020 cash collections include over $1.2 million from 2016 and 2017 receivables. This will be categorized as new revenue and income in 2020, as these amounts had previously been reserved and written-off.
- Based upon recent discussions with various insurance providers, Assure expects to continue the strong trend of collections in 2021.
Farlinger continued, “Partnering with insurance companies via in-network agreements will help Assure deliver better and more predictable results with less volatility. Looking into 2021, we do not anticipate significant volatility with respect to our revenue accrual per procedure given that both our existing in-network contracts and those we are currently negotiating, are comparable to our current accrual rates. This will continue to be a focus for Assure during 2021 as we attempt to migrate more and more revenue into agreements with insurance companies.”
Assure has a policy of reserving open claims when aged two years and netting these write-downs against current quarter revenue. The Company is continuing collection efforts on 2018 receivables reserved in 2020 and is confident that a share of these claims that are reserved will ultimately be recovered.
Company Reports Record Number of Procedures
Farlinger concluded, “The Company reported our highest number of procedures in the full-year period, the fourth quarter and the month of December 2020. In full-year 2020, Assure performed over 9,900 cases, including more than 3,000 in the fourth quarter and over 1,100 in the month of December. Comparatively, in 2019, we performed over 6,400 procedures during the full year, more than 2,200 in the fourth quarter and nearly 900 in December 2019. Although we continue to be impacted by COVID-19, and acknowledge that the pandemic has slowed our expansion efforts in certain markets, Assure is pleased to have grown its total procedures by more than 54% in 2020. We continue to expect to grow our case volume by at least 40% in 2021.”
The Company anticipates that the majority of the procedures postponed in 2020 will ultimately be rescheduled.
About Assure Holdings
Assure Holdings Corp. is a Colorado-based company that works with neurosurgeons and orthopedic spine surgeons to provide a turnkey suite of services that support intraoperative neuromonitoring activities during invasive surgeries. Assure employs its own staff of technologists and uses its own state-of-the-art monitoring equipment, handles 100% of intraoperative neuromonitoring scheduling and setup, and bills for all technical services provided. Assure Neuromonitoring is recognized as providing the highest level of patient care in the industry and has earned The Joint Commission’s Gold Seal of Approval®. For more information, visit the company’s website at www.assureneuromonitoring.com.
This press release includes certain measures which have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as monthly procedures performed. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers. References to monthly procedures performed are monitored by the Company. None of the foregoing non-IFRS measures is an earnings measure recognized by IFRS and do not have a standardized meaning prescribed by IFRS. Management believes that monthly procedures performed is an appropriate measure in evaluating the Company’s performance. Readers are cautioned that monthly procedures performed should not be construed as alternatives to net income (as determined under IFRS), as indicators of financial performance or to cash flow from operating activities (as determined under IFRS) or as measures of liquidity and cash flow.
This news release may contain “forward-looking statements” within the meaning of applicable securities laws, including, but not limited to comments with respect to: strategies; expectations; planned operations; the number of procedures monitored by the Company; the Company’s number of monthly procedures performed by the Company; the demand for the Company’s IONM services; the impact of COVID-19 on the Company’s operations; the Company’s collections process; the Company’s growth in terms of case volume; the Company’s existing and potential in-network contracts and the effects of partnering with insurance companies and the Company’s ability to collect past receivables. .. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to: Assure may not maintain its strong trend of collections in 2021;the uncertainty surrounding the spread of COVID-19 and the impact it will have on the Company’s operations and economic activity in general; the Company’s case volume may not grow by 40% in 2021; the Company’s procedures that were postponed in 2020 may not be rescheduled; the Company may not continue to be a leader in the IONM industry; the Company may not be able to collect its receivables from 2018; partnering with insurance companies via in-network agreements may not help the Company better and more predictable results with less volatility; volatility levels regarding the Company’s revenue accrual per procedure may increase in 2021; the Company may not successfully add additional in-network contracts and the risks and uncertainties discussed in our most recent annual and quarterly reports filed with the Canadian securities regulators and available on the Company’s profile on SEDAR at www.sedar.com, which risks and uncertainties are incorporated herein by reference. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, Assure does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
Neither the 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.
Scott Kozak, Investor and Media Relations
Assure Holdings Corp.
John Farlinger, Chief Executive Officer
Assure Holdings Corp.
Released January 11, 2021