Skylight Health Announces Closure of Operations in Colorado

Rhea-AI Summary

Skylight Health Group (TSXV:SLHG; OTCQX:SLHGF) has announced the closure of Rocky Mountain Health Care clinics in Colorado as part of a strategic move to cut costs and preserve cash. CEO Prad Sekar stated the necessity to eliminate loss-making operations to focus on their core business in Florida. The company aims to enhance positive cash flow and reduce liabilities to navigate challenging capital market conditions. Skylight Health operates a multi-state primary care network, aiming to shift from traditional fee-for-service to value-based care, which emphasizes quality and patient outcomes.

Positive

• Focus on streamlining operations by closing loss-making clinics.
• Strategic emphasis on the core business in Florida, which is performing better financially.
• Shift towards value-based care could enhance long-term financial performance.

Negative

• Closure of clinics indicates prior operational losses and challenges in the Colorado market.

TORONTO, Feb. 23, 2023 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (TSXV:SLHG; OTCQX:SLHGF) (“Skylight Health” or the “Company”) today announced the closure of Rocky Mountain Health Care clinics in Colorado (“Rocky Mountain Group”) as part of its continued effort to streamline its business and aggressively cut costs to preserve cash.

“We have come to realize that we need to shed all of our loss-making businesses immediately to preserve the strong core business operating out of Florida,” said Prad Sekar, CEO and Co-Founder of Skylight Health Group. “In order to survive during the difficult capital market environment, we have put an emphasis on generating positive cash flow and working to reduce liabilities. This will be a difficult process, but our team is determined to do what it takes to ensure we remain solvent with a view to focus our energy on our strong core value-based care business.”

About Skylight Health Group 

Skylight Health Group (TSXV:SLHG: OTCQX:SLHGF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state primary care health network comprised of physical practices providing a range of services from primary care, sub-specialty, allied health, and laboratory/diagnostic testing. The Company is focused on helping small and independent practices shift from a traditional fee-for-service (FFS) model to value-based care (VBC) through tools including proprietary technology, data analytics and infrastructure. In an FFS model, payors (commercial and government insurers) reimburse on an encounter-based approach. This puts a focus on volume of patients per day. In a VBC model, the providers offer care that is aimed at keeping patients healthy and minimize unnecessary health expenditures that are not proven to maintain the patient’s well-being. This places an emphasis on quality over volume. VBC will lead to improved patient outcomes, reduced cost of delivery and drive stronger financial performance from existing practices.

Forward-Looking Statements

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent our current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as "look forward," "believe," "continue," "building," or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings we make with the Canadian and United States securities regulators, including the Securities and Exchange Commission, available at: www.sec.gov, and Canadian Securities Administrators, available at www.sedar.com, and on our website, at skylighthealthgroup.com.

For more information, please visit our website or contact:

Investor Relations:
Jackie Kelly
investors@skylighthealthgroup.com
416-301-2949

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.

FAQ

What is the reason for Skylight Health Group's clinic closures?

Skylight Health Group closed Rocky Mountain Health Care clinics to cut costs and preserve cash amid financial challenges.

When did Skylight Health Group announce the closure of Rocky Mountain clinics?

The announcement was made on February 23, 2023.

How is Skylight Health Group planning to improve cash flow?

The company is focusing on eliminating loss-making operations and emphasizing its core business in Florida.

What is the stock symbol for Skylight Health Group?

The stock symbol for Skylight Health Group is SLHGF.

What business model is Skylight Health Group shifting towards?

Skylight Health is shifting from a traditional fee-for-service model to a value-based care model.