CEO, COO, and Directors Reduce Salaries for heliosDX, a Subsidiary of Rushnet, Inc

Rhea-AI Summary

RushNet, Inc (OTC PINK:RSHN) reported significant revenue declines in 2022, primarily due to Wellmed's denial of claims for heliosDX after a prior seven-year payment history. The cessation of in-house infectious disease testing for Medicare patients further exacerbated the revenue drop, impacting monthly earnings by $180,000 to $250,000. To address these challenges, heliosDX plans to expand services by adding Blood Toxicology and Hormone testing while launching retail offerings. Company executives, including CEO Ashley Sweat, have accepted salary reductions to reduce costs by approximately $100,000 monthly.

Positive

• Plans to expand services with Blood Toxicology and Blood Hormone testing in Q1 2023.
• Launching myheliosDX for at-home testing and wellness products.

Negative

• Significant revenue decline due to Wellmed's claim denials and Medicare testing halts.
• Monthly revenue impact estimated between $180,000 and $250,000.

ALPHARETTA, GA / ACCESSWIRE / December 28, 2022 / RushNet, Inc (OTC PINK:RSHN), (the "Company") recognizes 2022 has been a tough year for the business and the economy in general.

heliosDX has experienced a decline in revenue in 2022, in majority due to two components. First, in March of 2022, Wellmed, a United Healthcare company, stopped paying claims for Chattahoochee Physicians Laboratory Services, Dba heliosDX, after paying the previous 7 years. Wellmed first required the company to go on prepayment review, which the company obliged. Since then, Wellmed has put the company on auto denial for all claims submitted. heliosDX has filed a formal complaint, and is looking to work with United Healthcare and Wellmed to restore what was once a fruitful relationship. In addition, the company is seeking restitution for claims that the company believes were categorically denied improperly.

Secondly, as of the start of the 4th quarter, heliosDX has halted all infectious disease testing in-house regarding Medicare patients. Due to the Palmetto MAC requiring Z-Codes, and for certain infectious disease tests to go through their Technical Assessment (TA) process, all laboratories processing these tests which reside in the Palmetto MAC are unable to reimburse at this time.

The culmination of these two events have impacted heliosDX revenue on a monthly basis anywhere from $180,000 to $250,000 on any given month.

heliosDX is currently pivoting the business by adding new reference testing, and is planning to bring Blood Toxicology and Blood Hormone testing in house during the first quarter of 2023. In addition, the company is launching myheliosDX, which will house the retail brands of heliosDX at home testing along with other products, including the new line of wellness patches.

The company has had to make extremely tough decisions over the course of the last several months, and parted ways with many long time employees. The company has been able to reduce its costs over the last quarter by approximately $100,000 monthly. To show a further commitment to the business as the company pivots and evolves, Ashley Sweat, CEO of Rushnet and heliosDX, is reducing his salary by $50,000 annually, and has agreed to reduce an additional $25,000 starting February 1, 2023, if certain milestones have not been met by the company. In addition, Yann Gerville-Reache, COO, has agreed to reduce his salary by $25,000 annually. Other directors have also offered up a total of $10,000 in salary concessions. All salary concessions are effective January 1, 2023.

The company and its 14 employees are committed to the business and executing its plan as it moves into the future.

About HeliosDx:

heliosDX is a National Clinical Reference Laboratory offering High-Complexity Urine Drug Testing (UDT), Behavioral Drug Testing, Allergy Droplet Cards, Oral Fluids, and Infectious Disease (PCR). We are contracted in 44 of the lower 48 states and looking to expand our reach and capabilities. We intend to always stay ahead of the curve by continually investing in our infrastructure with the most efficient scientific proven instruments and latest cutting-edge software for patient and physician satisfaction. In management's opinion, following such best practices are intended to allow heliosDX to provide physicians fast and accurate reporting, meeting, and exceeding industry benchmarks. It is our goal to excel in patient and client care through physician designed panels that aid in testing compliance and reporting education.

Contact: Ashley Sweat
asweat@heliosdx.com
www.heliosdx.com
Twitter Handle: @dx_helios

Safe Harbor Notice

Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). The Company cautions that statements, and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates made by management. Actual results could differ materially from current projections or implied results. The Companies undertake no obligation to revise these statements following the date of this news release.

SOURCE: RushNet, Inc.

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FAQ

What caused the revenue decline for RushNet (RSHN) in 2022?

The revenue decline for RushNet (RSHN) was primarily due to Wellmed's cessation of claim payments and the halt of in-house infectious disease testing for Medicare patients.

How much has RushNet (RSHN) executives reduced their salaries?

Executives, including CEO Ashley Sweat, have collectively reduced salaries to save approximately $100,000 monthly.

What new services is heliosDX planning to introduce?

heliosDX plans to introduce Blood Toxicology and Blood Hormone testing as well as launch at-home testing products through myheliosDX.

What financial impact has RushNet (RSHN) faced monthly due to recent events?

RushNet (RSHN) experienced a monthly revenue impact ranging from $180,000 to $250,000 due to recent changes in claims processing and testing capabilities.