CloudMD sells clinics and cloud practice to WELL Health
October 12, 2022
VANCOUVER – CloudMD Software & Services Inc. announced an agreement with Well Health Technologies Corp. for the sale of its British Columbia based primary care clinics and Cloud Practice, its cloud-based electronic medical records (EMR) and practice management software, for approximately $5.75 million in cash.
In connection with the transaction, CloudMD has agreed to sell to WELL its brick-and-mortar primary care clinics, HealthVue (Richmond) and South Surrey Medical (Surrey), as well as its Cloud Practice software, which includes Juno EMR and ClinicAid.
CloudMD will retain ownership of its online patient portal, MyHealthAccess and will retain the right to use Juno EMR. The portal and software have been integrated into CloudMD’s Kii Personalized & Connected Care offering.
The divestitures of the clinics and Cloud Practice will not affect the services CloudMD currently delivers within its core business and is not expected to have a material impact on the company’s financial performance, according to a news release.
CloudMD’s divestment of the Clinics and Pharmacies Division is part of the its plan to focus on the performance of its core businesses, Enterprise Health Solutions (EHS) and Digital Health Solutions (DHS). Divesting these non-core assets will provide additional near-term capital to support the continued growth and innovation of the company’s employer healthcare offering and allow it to focus on improving gross margins and driving profitability.
Karen Adams (pictured), CEO of CloudMD, commented: “We are divesting non-core assets and focusing on our core business to drive organic growth, improve margins and move towards profitability next year. We will continue to reallocate capital from the sale of non-core assets back into the organic growth of the company and ensure we maximize the potential of our faster growing and higher margin EHS division.”
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions – the company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers. CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit https://investors.cloudmd.ca.