CloudMD Software & Services Inc., - CEO, Dr Essam Hamza.
CEO, Dr Essam Hamza.
Source: The Vancouver Sun.
  • CloudMD Software & Services (DOC) has signed an agreement to acquire a 100 per cent interest in a Mississippi-based medical clinic
  • The acquisition is part of the company’s broader strategy for entering the US market with its comprehensive suite of telehealth products
  • The news comes after the Trump Administration revealed unprecedented expansion of telemedicine to assist in managing the COVID-19 pandemic
  • Further details regarding the acquisition are expected to be released upon the formation of a definitive agreement
  • CloudMD Software & Services (DOC) is currently up 10.98 per cent and is trading at C$0.91 per share

CloudMD Software & Services (DOC) has signed an agreement to acquire a 100 per cent interest in a Mississippi-based medical clinic.

The clinic is managed by Dr. Fred Roh and Curtis Gibson. Fred has more than 30 years of experience in the US healthcare market, and is the founder of Healthcare Networks of America, which provides services to 24 million patients across the US via 15,000 member physicians.

Using CloudMD’s Telehealth platform, Fred will assist in the expansion of a network of Telehealth-powered satellite clinics, which CloudMD hopes will cover large areas of currently under-served regions in the US.

Curtis, on the other hand, will manage the Mississippi clinic. He has substantial experience in investment banking and medical-related business development, and will also assist in the roll-out of CloudMD’s services.

“We are very excited to work with CloudMD to expand the reach of consumer-centred virtual care, especially to the underserved areas of our country, starting in southeastern US,” Fred said.

“We believe we can help this technology become a fixture within medical practices, thereby making healthcare more accessible and cost-effective for patients, wherever they live,” he added.

CloudMD’s acquisition of the clinic comes as part of a broader North American expansion strategy. One of the company’s key goals is to begin providing a single, comprehensive stop for long-term care of chronic and complex patients.

The timing of the acquisition is particularly relevant, given the US Trump Administration’s recent announcement of an “unprecedented expansion of telemedicine” in an attempt to manage the current COVID-19 pandemic.

Dr. Essam Hamza, CEO of CloudMD, said the virus has created a massive paradigm shift in how healthcare is delivered and has hyper-accelerated the adoption of telehealth by patients and health care providers.

“As a result, technology is being used to deliver high quality health care across North America – especially in rural areas where healthcare services are often limited or non-existent.

“This highly strategic purchase is only the first step of an aggressive expansion plan to offer a very unique hybrid care solution to a very vulnerable patient population,” he concluded.

The details of the acquisition are expected to be announced upon the formation of a definitive agreement.

CloudMD Software & Services (DOC) is currently up 10.98 per cent and is trading at C$0.91 per share

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