Assure Holdings Corp. (the “Company” or “Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of intraoperative neuromonitoring services (IONM), has reached an agreement (the “Agreement”) with Clever Claims, LLC (Clever) to acquire Clever’s 35% stake (the “Clever Stake”) in Velocity Revenue Cycle, LLC (“Velocity”), the joint venture billing and collection company. Pursuant to the terms of the Agreement and effective on December 31, 2019, Clever assigned the Clever Stake, in exchange for nominal consideration, to Member Assure Billing, LLC, which is a subsidiary of the Company.
“We appreciate Clever’s support in helping Assure establish a billing and collections platform and the automated workflow processes capable of handling the substantial volume of claims the Company is generating as it accelerates growth,” said John A. Farlinger, executive chairman and CEO. “Over the past six months, we have overhauled our revenue cycle management system, resulting in a more timely and accurate filing of claims. As planned, Clever will now transition to a support role including accounts receivable follow-up and some limited claim submission that will conclude in the spring.”
Farlinger continued, “At this stage it is necessary for Assure to exert full control over the billing and collections process to ensure the Company is adequately collecting all the cash owed. I am pleased to report that we are now much more aggressive with respect to billing in a timely fashion, making appeals, proactively pursuing payers who are not compensating the Company in a sensible timeframe, as well as the negotiation and adjudication of claims.”
Farlinger concluded, “As we prepared for this transition, Assure built a 16-person in-house billing team with two additional hires planned for the near-term. The Company also signed an agreement to leverage a highly regarded billing and reporting platform that is deeply ingrained in the healthcare system. Assure’s investment is necessary to support a robust billing and collection function and timely cash collection experience, both of which represent key differentiators in the IONM industry. Enhancing revenue cycle management and reducing the business risk associated with the billing and collection process is fundamental to the health and success of the Company as it continues to scale.”
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Under the terms of the agreement established in August 2019, Velocity served as Assure’s exclusive, in-house billing and collection vendor. Assure owned a majority 65% stake in Velocity.
Extension of Neuro-Pro Promissory Note
The Company and Neuro-Pro Monitoring (“Neuro-Pro”) have agreed to extend the maturity date of the US$6 million promissory note issued by Assure to Neuro-Pro (the “Promissory Note”) to February 14, 2020. Further details on the Promissory Note and the acquisition of Neuro-Pro and its affiliated entities can be found in the Company’s news releases dated February 5, 2020, January 20, 2020, November 26, 2019 and November 1, 2019.
Source: Biospace