Change in the scope of information provided on the number of payment applications from insurers and information on the number of applications for payment from insurers submitted in September 2021
Current Report No. 37/2021
Legal basis: Article 17(1) of MAR – inside information
Management Board of Medicalgorithmics S.A. (“Issuer”, “Company”) hereby informs about the change in the reporting of monthly sales data filed by the subsidiary – Medi-Lynx Cardiac Monitoring LLC (“Medi-Lynx”), which so far have been presented as the number of all applications for payment from insurers which included MCT, Event, Extended Holter, Holter, payment requests for the patient-to-device connection service (hook-ups) and other. The change is aimed to reflect operational goals of the sales structure on the US market by reporting the number of procedures having a significant impact on the Company’s financial results. As a result, the Company will report the aggregate number of MCT, Event and Extended Holter tests, disregarding Holter procedures and payment applications for the patient-to-device connection service, due to the low margin and less significant impact on financial results. Additionally, as a result of the activities carried out, as illustrated by the presented data, Medi-Lynx records significantly higher y/y growth dynamics of these studies (MCT, Event and Extended Holter) compared to studies with lower margins (Holter, hook-ups and others).
The information provided so far in the current report referred only to the number of procedures performed and payment applications submitted and did not present a breakdown into different types of procedures with different margins. The company’s goal is to optimize the procedure structure in such a way that the revenues obtained from the performed medical procedures are characterized by an optimal margin. At the same time, the Management Board of the Company informs that it does not exclude in the future a reduction in the number of medical facilities through which it offers medical services on the US market, by those with the lowest sales potential, which could reduce the number of services without adversely affecting the achieved result.
In accordance with the new reporting structure, the Company will present monthly the aggregate number of MCT, Event and Extended Holter tests (the order reflects the level of margins achieved on individual services) cumulatively in the current and previous year and % change y / y. To ensure the comparability of reporting, the Company presents historical proforma data in a new reporting system for the previous months of 2021 and 2020.
Management Board of Issuer, in accordance with the adopted new sales data reporting structure, hereby informs about the monthly number of payment requests from insurers filed by the subsidiary – Medi-Lynx Cardiac Monitoring LLC (“Medi-Lynx”), due for the services provided by MCT, Event Monitoring, Extended Holter using PocketECG technology in the USA. In September 2021, 4,906 payment applications were submitted due to the MCT, Event Monitoring and Extended Holter services performed. This number does not include Holter procedures and payment applications for the patient-to-device connection service. Cumulatively, from January to September 2021, 44,494 of these claims were submitted, which is a 23.7% increase compared to 35,965 claims submitted in the comparable period of 2020.
At the same time, the Management Board informs that according to previously used reporting standard from January to September 2021, Medi-Lynx has submitted 63,619 of all claims , which is a 5.1% increase compared to 60,511 claims submitted in the comparable period of 2020.
Data for the current and previous years is in the schedule attached to this report.