Selectis Health Provides Business Update
Selectis Health, Inc. (OTC: GBCS) reported a revenue increase of over 75% year-over-year for Q1 2022. The company has improved patient census across its facilities while facing delays in financial audits. Interim CFO Christine Lucus has been appointed, and David Furstenberg joins the Board of Directors to enhance corporate governance. Selectis has secured direct billing approvals for all its facilities and aims to eliminate third-party staffing needs by year-end 2022. The company is focused on operational upgrades and maximizing profitability.
- Revenue increased over 75% year-over-year in Q1 2022.
- Sustained improvements in patient census across multiple facilities.
- Secured direct Medicaid and Medicare billing approvals for all facilities.
- Appointment of experienced individuals to executive roles enhances corporate governance.
- Delays in the audit of 2021 financial statements may impact future reporting.
- Ongoing reliance on third-party staffing leading to increased operating expenses.
- First Quarter 2022 Revenue Increased Over
- Sustained Census and Operational Improvements Drive Strategic Progress Through the First Half of 2022 -
- Christine Lucus Appointed as Interim Chief Financial Officer -
- Appointment of David Furstenberg to Board of Directors Establishes Standing Audit Committee and Strengthens Corporate Governance Structure -
Greenwood Village, Colorado, July 11, 2022 (GLOBE NEWSWIRE) -- Selectis Health, Inc. (OTC: GBCS) ("Selectis" or the "Company") is providing a business update on its recent strategic and operational highlights through the second quarter of 2022.
“While we are not yet able to report our 2021 financial results, we have continued to make strong progress on improving patient census across our portfolio and optimizing the efficiency of our operations,” said Lance Baller, CEO of Selectis. “Based on our internally prepared financial statements, which have yet to be reviewed, our revenue in the first quarter of 2022 increased by over
“As we have previously disclosed, the completion of our 2021 financial statements audit has been delayed by various audit field work challenges, and this has subsequently delayed the filing of our first quarter 2022 10-Q. We agree with our shareholders that these delays are unacceptable and are committed to taking the necessary actions to ensure that they will not be repeated in the future. Once our audited financial statements are filed, we will schedule our annual shareholder meeting and resume our regular reporting and communications cadence. We remain focused on completing the independent audit of our financial statements and becoming current on our SEC filings as soon as practicable.”
Recent Operational Highlights (Through Q2 2022)
Facility Footprint
- Assumed full operational control of Warrenton and Sparta facilities in December 2021.
- Entered 2022 with nine of the Company’s 13 owned facilities under its full operational control, compared to five owned and controlled facilities in 2020.
- Converted Park Place facility financing to a five-year term loan during the second quarter of 2022.
- Secured direct Medicaid and Medicare billing approvals from the Centers for Medicare & Medicaid Services (CMS) for all of the Company’s operated facilities—including newly opened buildings—by the end of the second quarter of 2022.
Census Growth
- Reached record patient census at Warrenton as of the first quarter of 2022, with over 56 patients currently in residence.
- Increased census at Park Place facility to over 25 patients in the second quarter of 2022.
- Surpassed 40 residents at Southern Hills independent living facility. Census at this facility is expected to reach full capacity (90 residents) by the end of the first quarter of 2023.
New Hires
- Hired two full-time corporate recruiters focused on accelerating the Company’s internal hiring program. Selectis continues to focus on staffing buildout across its facility footprint, with the goal of eliminating third-party agency staffing needs by year-end 2022.
- Hired two new facility-level executive directors at Sparta and Park Place, as well as a director of nursing and a marketing director at Park Place.
- Hired full-time marketing leaders for Southern Hills independent living and skilled nursing facilities.
Randy Barker, President and COO of Selectis, commented: “Through the first half of 2022, we have continued to implement key operational upgrades to enhance our capacity and patient mix throughout our portfolio. By the beginning of this year, we had nine of our 13 owned facilities under our full operational control, as we assumed operations at both Warrenton and Sparta in December 2021 after receiving final CMS approval to allow direct Medicaid and Medicare billing. We now have complete Medicaid and Medicare billing approvals for all of our operated facilities, and we will continue working to optimize our patient mix across our footprint to drive towards portfolio-wide profitability.
“Despite Omicron variant-related impacts at our facilities during the fourth quarter of 2021 and into the first quarter of 2022, we have since driven census improvements across our facilities. Patient census at our Warrenton facility reached record levels in the first quarter, and we generated strong growth at our Park Place facility and Southern Hills independent living facility during the second quarter.
“We have also worked to expand our facility-level recruiting, personnel, and leadership teams to support additional patient growth and reduce our need for temporary third-party agency nursing staff. Our agency usage was driven by pandemic-related needs and nursing staff shortages across our industry, and these higher third-party wage rates have increased our operating expenses through 2021 and into 2022. As we bolster our internal hiring efforts, we aim to eliminate our agency spending by the end of this year, which will improve our progress towards profitability and continue strengthening our operational infrastructure.
“As we enter the second half of 2022, we will work to further advance our business transformation strategy and enhance the quality of care we provide for our patients and residents. Across our organization, we remain focused on our core operational goals of maximizing patient census, optimizing Medicare and Medicaid patient mix, and achieving profitability for our full portfolio. We look forward to providing further updates as we finalize our independent audit and make additional strategic progress.”
Appointment of Christine Lucus as Interim Chief Financial Officer
Effective March 5, 2022, Selectis has appointed Christine Lucus as the Company’s interim Chief Financial Officer.
Lucus joined the Company as Controller in 2021 and has nearly a decade of financial experience in the health and pharmaceutical industries. Before joining Selectis, she served as Controller for Neubase Therapeutics, Inc., where she focused on financial statement preparations and reporting, as well as benefits administration. Prior to Neubase Therapeutics, Lucus was the accounting and HR manager for Drug Delivery, Inc. She holds a B.S. in Accounting from San Diego State University, where she served as VP of activities in student accountancy.
Baller continued: “Having Christine on our executive team has helped drive our sustained progress on our strategic initiatives. With her strong financial reporting and health industry background, she has made meaningful contributions to Selectis throughout her tenure with the Company. As we progress further into 2022, we look forward to continuing our work with Christine to make additional headway on our longer-term vision.”
Appointment of David Furstenberg to Board of Directors
Effective July 1, 2022, Selectis has appointed David Furstenberg to its board of directors. Furstenberg will serve on the Company’s standing audit committee and qualify as the audit committee’s financial expert, as defined in Item 401(h) of Regulation S-K.
Furstenberg is a tax attorney and certified public accountant with over 35 years of experience in tax research and planning, accounting, state and federal tax returns, and auditor relations. He previously served as the director of taxes at PulteGroup, where he led the federal, state, and international tax research and planning functions from 1997 to 2016. Prior to his role at PulteGroup, Furstenberg held the roles of assistant vice president – taxes, director of taxes, and director of federal taxes at Handleman Company. He has also served as an associate attorney at Levin, Levin, Garvett & Dill, PC and as a tax consultant and tax associate at Price Waterhouse. Furstenberg holds a B.A. in Accounting from Michigan State University and a J.D. from Wayne State University Law School.
Baller concluded: “With his extensive accounting, legal, and public company experience, David brings a seasoned perspective to our board at a key time in our business transformation. His appointment enables us to establish our standing audit committee, which strengthens our financial controls and corporate governance structure as we work towards up-listing on a national exchange. We look forward to leveraging David’s expertise as we continue working to progress our growth objectives and establish Selectis as a top-quality senior healthcare provider within the Southcentral and Southeastern U.S.”
About Selectis Health
Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.
For more information, please visit www.selectis.com.
Forward Looking Statements
This press release contains statements that plan for or anticipate the future. In this press release, forward-looking statements are generally identified by the words “anticipate,” “plan,” “believe,” “expect,” “estimate,” and the like. These forward-looking statements include, but are not limited to, statements regarding the following:
| * | strategic business relationships; | |
| * | statements about our future business plans and strategies; | |
| * | anticipated operating results and sources of future revenue; | |
| * | our organization’s growth; | |
| * | adequacy of our financial resources; | |
| * | development of markets; | |
| * | competitive pressures; | |
| * | changing economic conditions; and, | |
| * | expectations regarding competition from other companies. | |
| * | the duration and scope of the COVID-19 pandemic | |
| * | the impact of the COVID-19 pandemic on occupancy rates and on the operations of the Company’s facilities. | |
| * | Actions governments take in response to the COVID-19 pandemic, including the introduction of public health measures and other regulations affecting our properties and our operations. | |
| * | The effects of health and safety measures adopted by us in response to the COVID-19 pandemic. | |
| * | Increased operational costs because of health and safety measures related to COVID-19. | |
| * | Disruptions to our property acquisition and disposition activities due to economic uncertainty caused by COVID-19. | |
| * | General economic uncertainty in key markets as a result of the COVID-19 pandemic and a worsening of global economic conditions or low levels of economic growth. |
Although we believe that any forward-looking statements, we make in this press release are reasonable, because forward-looking statements involve future risks and uncertainties, there are factors that could cause actual results to differ materially from those expressed or implied. For example, a few of the uncertainties that could affect the accuracy of forward-looking statements, besides the specific factors identified above in the Risk Factors section of this press release, include:
| * | changes in general economic and business conditions affecting the healthcare industry; | |
| * | developments that make our facilities less competitive; | |
| * | changes in our business strategies; | |
| * | the level of demand for our facilities; and | |
| * | regulatory changes affecting the healthcare industry and third-party payor practices. |
Investor Relations Contact
Scott Liolios or Jackie Keshner
Gateway Group, Inc.
(949) 574-3860
selectis@gatewayir.com
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