Conclusion of a significant contract by a subsidiary
Current Report No. 43/2020
Legal basis: Article 17(1) of MAR – inside information
The Management Board of Medicalgorithmics S.A. (“Company” “Issuer”) notifies that the Issuer’s subsidiary, Medi-Lynx Cardiac Monitoring, LLC (“Medi-Lynx”) has signed an agreement (“Agreement”) with one of their largest commercial payors. As a result, Medi-Lynx will become an accredited medical services provider in Insurer network (in-network model).
Based on Agreement provisions, procedures rendered by Medi-Lynx to the patients starting November 2nd, 2020 will be reimbursed according to our agreed upon contractual rates. Company expects that impact of the Agreement will be seen in operating profits starting from Q1 2021. Company estimates, that after an agreement, approximately 85 percent of the population is covered for Medi-Lynx’s arrhythmia diagnostics services with “in-network” model.
Becoming an in-network provider for this significant payor 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 commercial 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.