Assure Holdings Enters into In-Network Agreement for Professional Services with Louisiana Commercial Health Insurer

Rhea-AI Summary

Assure Holdings Corp. (OTCQB: ARHH) announced a significant agreement with a commercial health insurer in Louisiana, effective retroactively from May 1, 2021. This agreement resolves a long-standing dispute and enables Assure to provide telehealth neurology services as an in-network provider. The deal streamlines billing by ensuring timely payments and includes a commitment to expedite open claims dating back to 2020. CEO John Farlinger emphasized this agreement as critical for maintaining the company's market viability and reducing operational risks.

Positive

• Assure has resolved a protracted dispute with a major health insurer in Louisiana, enhancing market viability.
• The agreement streamlines billing and collections, ensuring payment of claims within 45 days.
• The insurer has committed to expedite all open claims dating back to January 1, 2020.
• The agreement may reduce Assure's operational risks and accelerate payment processes.

Negative

• There is uncertainty surrounding the execution of the agreement leading to improved billing processes.
• The company may face challenges in negotiating additional in-network agreements.
• Risks related to the ongoing impact of COVID-19 on operations remain.

DENVER, June 01, 2021 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of intraoperative neuromonitoring services (“IONM”), is pleased to announce that it has signed an agreement (the “Agreement”) with a commercial health insurer in the state of Louisiana (the “Insurer”) with whom it has had a protracted dispute. The Agreement is effective retroactively as of May 1, 2021, and allows the Company to provide its professional telehealth neurology services for IONM as an in-network healthcare provider of the Insurer in Louisiana.

The Agreement will help streamline the Company’s billing and collections process in Louisiana by including contracted rates, payment of claims within 45 days, medical necessity conditions and dispute resolution steps. The Agreement includes a right for both parties to terminate the Agreement with 90 days’ written notice.

In addition, the Insurer has committed to expedite all open claims since January 1, 2020, at the contracted rates.

”Reaching an agreement with this Insurer is an important step for maintaining viability in the Louisiana market, which has been our most challenging state-level environment over a multi-year period,” said John A. Farlinger, Assure’s executive chairman and CEO. “Through this process, we have learned that the Insurer made payments to hospitals and medical facilities in which we operate for technologist services Assure provided. We are in the process of negotiating payments with those hospital partners.”

Farlinger added, “This Agreement helps to reduce Assure’s risk, minimize complexity and accelerate payment on cases associated with the Insurer. Executing this Agreement is another important step forward as Assure further develops an in-network revenue stream, a key differentiator that few of our IONM peers have the scale or experience to achieve.”

Farlinger concluded, “We are seeing encouraging engagement from other payors on negotiating additional in-network agreements.”

The Agreement concludes a protracted negotiation with the Insurer over a dispute in which cases were performed, services were rendered by Assure and associated claims were submitted, but reimbursement associated with the services performed by Assure were not subsequently made by the payor.

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.

Forward-Looking Statements
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; future actions of the Company; the Company’s growth potential and strategy and the expected effects of the Agreement on the Company’s business and operations. 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: the Agreement may not streamline the Company’s billing and collections process in Louisiana; the Company may not work with the Insurer in markets outside Louisiana; the Company’s strategy to develop an in-network revenue stream; the Company may not negotiate additional in-network agreements; the Company may not successfully negotiate payments with hospital partners; the Agreement may not reduce the Company’s risk, minimize complexity and accelerate payment on cases associated with the Insurer; the uncertainty surrounding the spread of COVID-19 and the impact it will have on the Company’s operations and economic activity in general; 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.

Contact
Scott Kozak, Investor and Media Relations
Assure Holdings Corp.
1-720-287-3093
Scott.Kozak@assureiom.com

FAQ

What does the agreement with the insurer mean for Assure Holdings (ARHH)?

The agreement allows Assure to provide telehealth neurology services as an in-network provider in Louisiana, streamlining billing and ensuring timely payments.

When does the agreement with the Louisiana insurer take effect?

The agreement is effective retroactively from May 1, 2021.

How will the agreement affect Assure's claims process?

The agreement includes expedited processing of open claims since January 1, 2020, which should enhance cash flow for Assure.

What are the potential risks associated with the agreement for Assure Holdings (ARHH)?

There are uncertainties about whether the agreement will effectively streamline billing and the ability to negotiate further agreements with other payors.