FOXO TECHNOLOGIES INC. PROVIDES UPDATE ON ITS BEHAVIORAL HEALTH SUBSIDIARY, MYRTLE RECOVERY CENTERS, INC.

Rhea-AI Summary

FOXO Technologies (NYSE American: FOXO) has reported positive developments at its behavioral health subsidiary, Myrtle Recovery Centers. The company's substance abuse treatment facility in Oneida, Tennessee has achieved stable operations, maintaining an occupancy rate of 75% or higher since early 2025, occasionally reaching full capacity.

Myrtle has successfully finalized several in-network contracts with major managed care organizations in 2025. The company will participate as a Silver Sponsor in the upcoming ETAADAC Conference in Knoxville, TN (March 19-21, 2025), an event gathering industry leaders to discuss addiction counseling and treatment developments.

Positive

• Facility maintains 75%+ occupancy rate since early 2025, occasionally reaching full capacity
• Successfully secured multiple in-network contracts with major managed care organizations

Negative

• None.

Insights

Financial Analyst

FOXO's subsidiary Myrtle Recovery Centers has reached a significant operational milestone with its Oneida, Tennessee substance abuse treatment facility maintaining 75%+ occupancy rates since early 2025. This threshold is particularly meaningful in healthcare services, as facilities typically approach profitability at 70-75% occupancy. Reaching and occasionally exceeding capacity indicates not just a break-even operation but likely a profitable one.

The newly finalized in-network contracts with major managed care organizations represent a substantial business development that should create more predictable revenue streams and patient flow. These contracts typically lead to increased referral volume while reducing collection risks and administrative costs. For behavioral health facilities, securing such partnerships is often challenging and time-consuming, making this achievement noteworthy for FOXO's subsidiary.

While the announcement lacks specific financial metrics, these operational improvements suggest positive momentum for this business unit. For micro-cap companies like FOXO ($3.48M market cap), the performance of individual subsidiaries carries outsized importance to overall financial health. The sustained high occupancy rates combined with expanded insurance network coverage create a foundation for potential revenue growth and margin improvement as the facility continues to operate at or near capacity.

Healthcare Operations Specialist

Myrtle Recovery Centers' consistent 75%+ occupancy rate represents exceptional operational execution in the challenging behavioral health sector. For substance abuse treatment facilities, maintaining high utilization rates requires effective clinical programming, strong community relationships, and efficient patient management systems. The fact that the facility occasionally reaches full capacity suggests not only operational success but also potential unmet demand in their service area.

The strategic value of the newly secured in-network insurance contracts cannot be overstated. These agreements typically take 6-12 months to translate into stable referral patterns, but once established, they significantly enhance revenue predictability and facility viability. Rural behavioral health providers like Myrtle's Oneida facility face unique challenges including staffing limitations, transportation barriers for patients, and complex reimbursement dynamics.

Myrtle's apparent success in rural Tennessee demonstrates effective market positioning in an underserved region where substance abuse treatment resources are often scarce. The company's participation in the regional addiction treatment conference further reinforces their community integration strategy. From an operational perspective, reaching stabilization in a behavioral health facility within a rural setting represents a significant achievement that positions the subsidiary for sustainable operations and potential expansion of services or locations.

MINNEAPOLIS, MN, March 12, 2025 (GLOBE NEWSWIRE) -- FOXO Technologies Inc. (NYSE American: FOXO) (the “Company or FOXO”), provides an update on Myrtle Recovery Centers, Inc., (“Myrtle”) and its behavioral health facility in Oneida, Tennessee, and confirms participation in a major alcohol and drug addiction conference in East Tennessee.

Myrtle is pleased to announce that its Oneida, Tennessee substance abuse treatment facility has reached stabilization by maintaining an occupancy rate of 75% or greater since the beginning of 2025. In addition, on occasion, the facility has been at capacity unable to accept additional patients over the same period. Myrtle has also, since the beginning of 2025, finalized a number of in-network contracts with major managed care organizations.

Myrtle is also pleased to announce its participation as a Silver Sponsor in the upcoming ETAADAC (East Tennessee Association of Alcohol and Drug Addiction Counselors) Conference, taking place in Knoxville TN on March 19-21, 2025. This event offers an excellent opportunity to bring together key industry leaders from across the state to address the most pressing issues in addiction counseling and treatment.

The ETAADAC Conference serves as a vital platform for professionals in the field of addiction recovery to exchange ideas, share best practices, and engage in discussions on emerging trends and challenges. Attendees will have the opportunity to network with experts, gain insights from thought-provoking presentations, and explore innovative approaches to addiction treatment.

“We are delighted with the progress our business has achieved since becoming part of FOXO and are honored to be part of this important conference next week that brings together dedicated professionals committed to making a difference in addiction recovery,” said Robert Merritt, CEO of Myrtle Recovery Centers. “ETAADAC provides an invaluable opportunity for collaboration and learning as we continue our efforts to improve lives and strengthen our communities in rural Tennessee.”

For more information about the ETAADAC, please visit https://www.taadac.org/east-tennessee

About FOXO Technologies Inc. (“FOXO”)

FOXO owns and operates three subsidiaries.

Rennova Community Health, Inc., owns and operates Scott County Community Hospital, Inc. (d/b/a Big South Fork Medical), a critical access designated (CAH) hospital in East Tennessee.

Myrtle Recovery Centers, Inc. operates a 30-bed behavioral health facility in East Tennessee providing inpatient services for detox and residential treatment and outpatient services for MAT and OBOT programs.

FOXO Labs, Inc. is a biotechnology company dedicated to improving human health and life span through the development of cutting-edge technology and product solutions for various industries.

For more information about FOXO, visit www.foxotechnologies.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company’s most recent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Contact:
Sebastien Sainsbury
ssainsbury@foxotechnologies.com
(561) 485-0151

FAQ

What is the current occupancy rate at Myrtle Recovery Centers' Oneida facility?

The Oneida facility maintains an occupancy rate of 75% or higher since early 2025, occasionally reaching full capacity.

What contracts has Myrtle Recovery Centers secured in 2025?

Myrtle has finalized several in-network contracts with major managed care organizations since the beginning of 2025.

When and where is Myrtle Recovery Centers participating in the ETAADAC Conference?

Myrtle is participating as a Silver Sponsor in the ETAADAC Conference in Knoxville, TN, from March 19-21, 2025.

Where is Myrtle Recovery Centers' treatment facility located?

Myrtle Recovery Centers' substance abuse treatment facility is located in Oneida, Tennessee.