Full Press Release Details
HOLDINGS announces the successful acquisitions of
healthcare america, inc. and AHP Management, inc. to form one of the
leading technology-enabled population health management companies
GA (PRNewswire) - March 2, 2021 - Clinigence Holdings, Inc. ("Clinigence" or the "Company")
(OTC: CLNH), a pioneer in clinical data integration, clinical quality reporting and population health analytics, today announced
the successful acquisitions of Accountable Healthcare America, Inc. ("AHA"), a leading medical management platform
company and provider network in Florida, and AHP Management, Inc. ("AHP"), a management services organization and
provider network in California. The newly combined company, which will be renamed Accountable Healthcare America and will be headquartered
in Ft. Lauderdale, Florida, brings together three leading, complementary healthcare organizations to form one of the nation's
leading technology-enabled, risk-bearing population health management companies. The transactions were approved by the Boards
of Directors of all three companies.
in Ft. Lauderdale, Florida and founded in 2017 by industry veterans with a combined 125 years of experience in the Medicare
managed care space, AHA is a leading medical management platform company that currently has an investment in one of the most
successful accountable care organizations with approximately 16,000 Medicare members through a network of over 65 providers.
Through its investment AHA provides a suite of services for its providers, including care coordination, high-risk care
managers, documentation improvement and medical coding programs, medical management best practices programs, health
management programs such as annual wellness visits and chronic care management, and performance improvement plans.
in Los Angeles, California and founded in 2000, AHP Management, Inc.'s affiliated medical group, AHP IPA, currently provides
care for 22,065 patients, including approximately 1800 Medicare Advantage patients, through a network of 141 primary care physicians
and 660 specialists. AHP Management's affiliated medical group, AHP IPA, has become a variable interest entity ("VIE")
of Clinigence in order to be compliant with California's corporate practice of medicine regulations.
combination of the three companies fuses one of the leading healthcare information technology companies with two leading medical
management companies to form a unique, scalable operating platform that is well positioned for the ongoing transition of U.S.
healthcare from fee-for-service payments to value-based reimbursements, including full-risk, global capitation models. The platform
also addresses another major theme in U.S. healthcare: faced with mounting costs, shifting regulations and burdensome billing,
reporting and technology requirements, many physicians and medical groups have been selling their practices to larger hospital
systems. The strategy of the combined company is to be one of the few, preeminent technology-enabled national medical groups by
acquiring and/or operating medical groups, independent practice associations ("IPAs"), accountable care organizations
("ACOs"), management services organizations ("MSOs") and individual practices, allowing providers to focus
on providing the best quality of care to their patients.
the terms of the two merger agreements, Clinigence will issue newly-issued shares of common stock, on a fully-diluted pro
rata basis, to the equity holders of AHP and AHA in exchange for 100% of the outstanding equity securities of AHP and AHA.
The former AHP equity holders will own 45% of Clinigence's issued and outstanding common stock, the former AHA equity
holders will own 35% of Clinigence's issued and outstanding common stock, and the former Clinigence equity holders will
own 20% of Clinigence's issued and outstanding common stock, in each case on a fully-diluted, as converted basis as of
immediately prior to the transactions.
Hosseinion, M.D., the Co-Founder and former CEO of NASDAQ-listed Apollo Medical Holdings and current Chairman of Clinigence, will
serve as Chairman and CEO of the combined company. Fred Sternberg, Founder and CEO of AHA and Co-Founder and former CEO of publicly-listed
Metropolitan Health Networks, which was subsequently sold to Humana for $850 million, will serve as President.
Board of Directors will consist of ten directors: seven from Clinigence, five of which are independent, one from AHA and one from
AHP. One new independent director has been added to the Board: Randall Stern, Founding Member and Chairman of the Investment Committee
of Boone Opportunity Lenders, an independent sponsor in Greenwich, CT, that manages investment funds and provides capital for
companies seeking to complete acquisitions, management buyouts and recapitalizations. One Board Observer is also being added:
Oded Levy, Co-Founder, President and Managing Partner of Blue Ox Healthcare Partners, a private equity firm in New York City that
invests in healthcare companies.
are excited to announce the strategic mergers with AHA and AHP to create one of the leading technology-enabled population health
management companies in the country. We expect to be an active participant in the consolidation of our industry," stated
Warren Hosseinion, M.D., Chairman and Chief Executive Officer. "We believe that combining our three companies will give
us the necessary scale, leadership, technology and intellectual capital to succeed in today's U.S. healthcare delivery market.
And as stated before, our goal is to seek to list our common stock on the Nasdaq Capital Market."
Timeline for Listing of Common Stock on Nasdaq
intends to apply for listing on Nasdaq as soon as practicable. The process is expected to take 4-6 months to complete, but could
take longer. There can be no assurance that the company will be able to list its common stock on Nasdaq.
Change and Trading Symbol Update
Company intends to change its name to Accountable Healthcare America and to apply for a new ticker symbol.
of the merger agreements in their entirety and the Form 8-K report may be accessed at www.sec.gov.
Clinigence Holdings, Inc.
Holdings, a fully reporting, publicly-held company, is a leading healthcare information technology company providing an advanced,
cloud-based platform that enables healthcare organizations to provide value-based care and population health management. The Clinigence
platform aggregates clinical and claims data across multiple settings, information systems and sources to create a holistic view
of each patient and provider and virtually unlimited insights into patient populations. For more information, please visit www.clinigencehealth.com.
Information on our website does not comprise a part of this press release.
statements and information included in this press release constitute "forward-looking statements" within the meaning
of the Federal Private Securities Litigation Act of 1995. When used in this press release, the words or phrases "will likely
result," "expected to," "will continue," "anticipated," "estimate," "projected,"
"intend," "goal," or similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known
and unknown, and uncertainties, including but not limited to, economic conditions, dependence on management, dilution to shareholders,
lack of capital, changes in laws or regulations, the effects of rapid growth upon the Company and the ability of management to
effectively respond to the growth, demand for products and services of the Company, newly developing technologies, its ability
to compete, conflicts of interest in related party transactions, regulatory matters, protection of technology, lack of industry
standards, the effects of competition, the inability of the Company to obtain or maintain the listing of the post-acquisition
company's ordinary shares on Nasdaq following the Merger, and the ability of the Company to obtain additional financing.
Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results
for future periods to differ materially from any opinions or statements expressed within this press release.
ADDITIONAL INFORMATION:
email at mike.bowen@ahahealthcare.net