Conclusion of a significant agreement by a subsidiary
Current Report No 33/2019
Legal basis: Article 17(1) of MAR – inside informatio
The Management Board of Medicalgorithmics S.A. (“Company” “Issuer”) notifies that on July 25, 2019 the Issuer’s subsidiary, Medi-Lynx Cardiac Monitoring, LLC (“Medi-Lynx”) has signed an agreement with UnitedHealthcare Group, biggest private health insurance provider in US (“Agreement”). As a result Medi-Lynx will become accredited medical services provider in Unitedhealthcare insurance network in USA.
Based on Agreement provisions, procedures rendered by Medi-Lynx to the patients after August 1st, 2019 will be reimbursed according to our agreed upon contractually rates. Company expects that impact of the Agreement will be seen in operating profits starting from Q4 2019. Becoming an in network provider for biggest private health insurance provider in US is an important milestone in Group’s medium-term objective to change the business model by entering into long term in-network contracts directly with key private insurers, which was communicated in current report 4/2019. The Company assumes that the change in the business model is a key decision that will allow Medi-Lynx to increase the volume of medical procedures sold on US market and as a result increase its revenues.