Telehealth is among a handful of legitimate revolutions breaking out from the purgatory of potentiality due to the Covid-19 global pandemic health crisis, along with cloud-based virtual environments, data analytics, edge computing, on-demand and delivery logistics, and obviously anything to do with solving the virus problem.
Most of these changes center around achieving normal everyday objectives without being in proximity with lots of other people. But they also represent systems of behavior for which the underlying technology was already available, but wasn’t necessary or, in the case of telehealth, was limited by regulations.
However, necessity is the mother of invention – or, perhaps, the mother of “transformation”.
In the case of telehealth, before Covid-19, we didn’t need to optimize around convenience and digital transparency, so we didn’t. But, with the outbreak, needs changed, and regulators followed, opening the door through a rollback of limitations around interstate communications, HIPAA strictures, and Medicare rules for a new era in healthcare.
With all of these changes, the genie is out of the bottle and it’s never going back in. Once we have a viable, effective, trusted, and widely available Covid-19 vaccine, the odds that we will reinvent a more complicated and less convenient reality through habit and re-regulation approach infinite unlikelihood. In other words, these evolutionary shifts are permanent, which is enormously important for investors.
One company increasingly positioning for this new reality is Progressive Care Inc. (OTCMKTS:RXMD).
Around the Corner
Progressive Care Inc. (OTCMKTS:RXMD) is making moves that place it at the heart of this shift, especially with its recent move to acquire MyApps, which is the sole owner of the popular telehealth service, app CallingDr™ (www.callingdr.com).
CallingDr™ is a fully-launched virtual platform providing multiple levels of service with a suite of products, including the capability to allow patients to take ownership of their own health records and provide access to health information through the related app and patient portal.
The reach already includes hundreds of medical practices in multiple states, including gastrointestinal, internal medicine, psychiatry, pulmonology, cardiology as well as remote clinics and in-patient settings. Customers include single-physician clinics, multi-physician clinics, emergency room centers, nursing homes, and home health setups.
CallingDr™ was ranked in the top ten list of patient engagement solution providers by Healthcare Tech Magazine in 2019, it’s already been integrated into top connected medical devices such as Thinklab’s Stethoscopes, it has already gotten into big systems like PointClickCare, the leading cloud-based Electronic Health Record (EHR) software designed specifically for the long-term care providers system, and it has accolades, including Technology Innovators, a leading tech-based digital publication, which listed CallingDr™ as one of the top 20 Innovators in Telemedicine for 2020.
Expansion to Nationwide Pharmacy
The other huge development woven into the fabric of the company’s recent strategic transition is an expansion from a regional pharmacy play to a nationwide scale of service.
According to RXMD’s recent corporate update, Progressive Care will be moving to participate in the prescription drug business in all 50 US states (the Company is currently licensed in 14 US states) on a mail-order basis once the takeover closes.
The company goes on to note that nearly one-third of all prescriptions in the US are filled on a mail-order basis, suggesting that this transition will increase Progressive Care’s total addressable market by over $200 billion (based on Company data along with data from the US Department of Health and Human Services).
In addition, according to information from MyApps management, MyApps serviced 3,448 new patients over the six months between March 1 and September 1, 2020, with some having multiple sessions, amounting to over 10,500 remote healthcare sessions in the past six months.
Along with CallingDr™, MyApps also has a portal named FindingDr™, which helps providers connect with new patients. Following the closing of the acquisition, Progressive Care will be able to offer healthcare providers across the country and in its network of business with access to this portal to connect them with new patients.
RXMD CEO, Alan Weisberg, added, “GoodRX, which is comparable to a stock in the pharmacy services space, recently filed for an IPO with a pre-IPO valuation of $2.8 billion on under $390 million in 2019 sales, trading at nearly 7 times trailing sales. The 2019 acquisition of ‘HeyDoctor’ appears to be an important part of its growth plan and future valuation. Pairing pharmacy services with a powerful telehealth platform unlocked the prospect of fresh growth potential relative to the space, especially as federal and state regulations on telemedicine were stripped from the equation after the onset of the COVID-19 pandemic health crisis in March. We believe CallingDr is a superior telemedicine platform. We also believe we have an even more potent mix of assets that present a similar formula for powering shareholder value over the coming decade. Yet, Progressive Care shares trade under 0.5 times 2019 sales. I believe that our valuation has been greatly impacted by recent trading volume, which is not a result of insider selling. With enormous year-over-year growth, a coming $200 billion expansion in total addressable market, and the acquisition and integration of an active cutting-edge telehealth platform with a national customer footprint already established, and with the goal of uplisting to a major exchange, Progressive Care continues to aggressively strive toward leadership as an innovative technology and personalized healthcare company.”