Ethema Posts Positive Q1 Results

Rhea-AI Summary

Ethema Health Corporation (OTCPINK: GRST) reported a 23.4% increase in total billed claims for Q1 2022, resulting in positive EBITDA of $186,640 for its ARIA subsidiary. Despite this growth, the overall company experienced a loss attributed to debt-related expenses. CEO Shawn Leon mentioned that revenue rises were tempered by weaker collection rates due to insurance policy resets. Looking ahead, the company projects further growth with new billing rates and additional capacity from 14 new beds. A new subsidiary, PB Billing LLC, was launched to enhance billing operations.

Positive

• 23.4% increase in total billed claims for Q1 2022.
• Positive EBITDA of $186,640 for the ARIA subsidiary.

Negative

• Overall company loss primarily due to interest and debt-related expenses.
• Weaker collection rates impacted by insurance policy resets.

WEST PALM BEACH, FL, May 16, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”), filed today, the first quarter 2022 10-Q.  The Company’s ARIA subsidiary had an increase of 23.4% in total billed claims for the first quarter of 2022 over the total billed claims for fourth quarter 2021 resulting in positive EBITDA for the ARIA subsidiary of $186,640.00  for the quarter.  The overall Company loss was due primarily to interest and other debt related expenses. 

Mr. Shawn Leon, Company CEO, reported, “While quarter one revenues were up substantially, the collection percentage rates were weaker due to the resetting of client insurance policy deductibles and copays that take place on January 1 each year. We are looking forward to seeing continued positive progress in quarter two with the implementation of the increased billing rates in April and the addition of fourteen new beds at the end of May. We need to continue our focus on eliminating expensive debt with less expensive debt or equity. This is achievable and will improve the overall Company performance.”

The Company also created a new wholly owned subsidiary named PB Billing LLC which will look after the billing for the ARIA subsidiary in May 2022 and for other non-Company owned treatment facilities in the future. 

About Ethema Health Corporation

Ethema Health Corporation (OTCPINK: GRST) operates in the behavioral healthcare space specifically in the treatment of substance use disorders. Ethema developed a unique style of treatment over the last decade and has had much success with in-patient treatment for adults. Ethema will continue to develop world class programs and techniques for North America.  For more information you can visit our website at www.ethemahealth.com . 

Notice Regarding Forward-Looking Statements

The information contained herein includes forward-looking statements.  These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.  You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.  Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity.  We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

For information please contact:
Ethema Health Corporation
shawn@ethemahealth.com     
Text to 416-500-0020
Twitter @healthethema

FAQ

What were Ethema Health Corporation's Q1 2022 results?

Ethema Health Corporation reported a 23.4% increase in total billed claims, leading to a positive EBITDA of $186,640 for the ARIA subsidiary in Q1 2022.

Why did Ethema Health Corporation report a loss despite increased revenue?

The overall loss was primarily due to interest and other debt-related expenses, despite a substantial rise in revenues.

What is the significance of the new PB Billing LLC subsidiary for GRST?

PB Billing LLC was created to manage billing for the ARIA subsidiary and other facilities, potentially improving operational efficiency.

What challenges did Ethema Health face in Q1 2022?

Challenges included weaker collection rates caused by resetting client insurance policy deductibles and copays.