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Co. Expands Telehealth Contract to New State

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Reliq Health Technologies Inc. announced that a large U.S. health group has expanded its contract with the telehealth company to cover facilities in a new state. Read why one analyst thinks the stock is a Buy.

Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN) announced that a large U.S. health group has expanded its contract with the telehealth company to cover facilities in a new state, Pennsylvania.

The original contract involved skilled nursing facilities (SNFs) in Florida. The client has chosen to expand its use of Reliq's software and services platform into facilities in the mid-Atlantic state.

"Our client is a large U.S. health group that takes a pro-active approach to patient care in order to improve health outcomes and reduce costs," said Chris Shields, chief executive officer of Reliq Health Technologies. "The iUGO Care remote patient monitoring, chronic care management and behavioral health integration solutions Reliq will be providing will enable effective preventative care, allowing our client to achieve their cost and quality of care objectives."

Reliq said the company's network of SNFs also includes Illinois and Michigan. The expansion into Pennsylvania is expected to add more than 30,000 new patients to Reliq's iUGO Care platform by the end of 2025 at an average revenue of US$65 per month per patient.

The Catalyst: A Period of Rapid Growth

Ontario-based Reliq develops and provides software-as-a-service (SaaS) solutions for delivering virtual medical care to patients with iUGO.

These comprehensive turnkey solutions benefit healthcare providers, patients and payers, the company noted in its investor presentation. It affords clinicians an easy way to provide a wide range of virtual healthcare services to their at-risk patients and to seamlessly launch these new billable offerings.

Patients, even ones with complex health situations, receive high-quality care in the home, leading to improved outcomes that ultimately improve their and their family's quality of life, Reliq said. This approach reduces the costs of care delivery, which is a positive for payers.

Reliq was profitable in Q1/23 and is currently in a period of rapid growth, the company said. Its revenue more than doubled between fiscal year 2022 (FY22) and FY23.

Reliq is currently rated Buy by at least one analyst, Allen Klee, with Maxim Group, according to TipRanks.

Driving the healthcare tech firm's organic growth is recurring revenue from its SaaS subscriptions, the company has said.

Revenue from software and services increased by more than two and a half times between FY22 and FY23 and is expected to more than triple in FY24.

Recently, the company expanded an existing contract with a large U.S. health plan operating accountable care organizations and health maintenance organizations in five states, encompassing more than 3,000 doctors and 1 million patients, the company noted in a news release. As a result, about 50,000 of these patients are to be onboarded to the iUGO Care platform by the end of 2025.

Reliq is currently rated Buy by at least one analyst, Allen Klee, with Maxim Group, according to TipRanks.

Jefferson Research's analysis of Reliq's last reported quarter's performance highlighted strong earnings quality as operating cash flow increased during the three months of Q3 2023.

Remote Healthcare, AI Algorithms

According to Grand View Research, the global telehealth market size was estimated at US$101.2 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 24.3% from 2024 to 2030.

The growth is being driven by growing demand for remote healthcare services, especially due to COVID-19 pandemic, where need for virtual consultations and remote monitoring surged, the firm's analysts said.

"In addition, advancements in technology, including improved internet connectivity and adoption of smartphones, contribute to expansion of telehealth by making healthcare services more accessible and convenient for patients," researchers noted. "The emphasis on cost-effective and efficient healthcare solutions further propels the adoption of telehealth, driving market growth."

The iUGO platform also uses AI algorithms in its software — drawing on data from fall-detection devices, medication tracking, and vitals data to flag patients at home or in facilities who need more monitoring, the company has said.

The global AI in healthcare market size was estimated at US$19.27 billion in 2023, Grand View noted. It is expected to grow at a CAGR of 38.5% from 2024 to 2030.

Streetwise Ownership Overview*

Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN)

*Share Structure as of 7/21/2023

One primary factor driving market growth is the increasing demand in the healthcare sector for enhanced efficiency, accuracy, and better patient outcomes. According to a March 2024 Microsoft-IDC study, 79% of healthcare organizations are presently utilizing AI technology, researchers said.

Ownership and Share Structure

About 8% of Reliq's shares are owned by insiders, including former Chief Executive Officer Lisa Crossley, with 1.6% or 3.51 million shares.

About 0.3% of the company is owned by institutional investors, including FNB Wealth Management, with 0.01% or 0.03 million shares, according to Reuters.

Other top investors include Eugene Beukman, who owns 0.10% or 0.23 million shares, and Brian Storseth, who owns 0.06% or 0.14 million shares, Reuters said.

The company said 91.7% of the company is retail.

The company has 220.16 million shares outstanding, with about 216 million free-floating. It has a market cap of CA$47.28 million and trades in a 52-week range of CA$0.66 and CA$0.195.

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Important Disclosures:

  1. Reliq Health Technologies Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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