GARDEN CITY, N.Y., March 31, 2014 /PRNewswire/ --Millennium HealthCare Inc. (OTCBB: MHCC) today issued a statement from its Chief Executive Officer, Dominick Sartorio, providing an update on corporate developments over the past year. The statement is included in its entirety below:
"We have spent the past year positioning Millennium Healthcare to become a leader in the delivery of innovative healthcare solutions that improve patient care and support implementation of new healthcare legislation in the United States. We are leveraging our historical expertise in physician practice development, support and administration services, including medical procedure coding and billing to launch a medical equipment and device business focused on preventative testing.
The implementation of The Affordable Care Act makes the primary care physician one of the most important elements in executing the mandate. As of January 1, 2014, certain preventative test costs are fully paid by Medicare and private insurers. Under previous rules, individuals or corporations absorbed these costs until deductibles were met. The immediate anticipated impact is that medical tests will be in much greater demand in order to identify people at risk for extremely costly diseases and avoid the skyrocketing of medical costs due to discovery of these diseases at later stages. Millennium's strategy is to give primary care physicians access to groundbreaking preventative diagnostic devices that meet this demand while providing physicians with opportunities to expand their patient care capabilities and increase revenues.
Through our wholly owned subsidiary, Millennium Medical Devices, we are forming alliances and partnerships with medical device companies providing revolutionary devices utilizing cutting edge technology that are cost effective and cleared by the U.S. Food and Drug Administration (FDA). The devices we plan to distribute are focused on preventative and diagnostic testing and care with the anticipation of detecting potential medical issues in their early stages, yielding positive medical outcomes. These devices have obtained all necessary approvals and certifications and are fully reimbursable under current medical procedure billing codes. Our goal is to ramp up and maintain an inventory of such devices and kits in anticipation of meeting and maintaining distribution and delivery requirements in a timely manner.
To date, we have signed exclusive distribution agreements for four products. In May 2013, we entered into an exclusive distribution agreement with Heart Smart Inc. for Vasoscan, a heart health test and assessment device. VasoScan is designed to analyze the Autonomic Nervous System (ANS) function, stress and peripheral blood circulation. VasoScan is FDA-cleared and provides early detection of arterial wall elasticity and determination of biological arterial age using a non-invasive LED/Photodiode finger probe sensor.
In February 2013, we entered into an exclusive nationwide distribution agreement with CDx Diagnostics Inc. for OralCDx™, an oral cancer biopsy test. The patented and proprietary oral swab diagnostic platform consists of a unique tissue sampling method combined with computer-assisted laboratory tissue analysis which can identify precancerous epithelial cells that cannot be practically found by any other means. In February 2014, we signed another exclusive agreement with CDx Diagnostics for distribution of DermCDx™, a brush biopsy test kit that is used to confirm suspected basal cell carcinoma (BCC). Like OralCDx™, DermCDx is also minimally invasive test combining a patented brush biopsy sampling instrument with sophisticated laboratory analysis. It is designed to allow primary care physicians to easily confirm suspected BCC resulting in expedited referral to a dermatologist for treatment.
In addition, we entered into an exclusive distribution agreement with eWellness Corporation for distance monitored physical therapy programs in June 2013. Distance monitored physical therapy programs (DMpt) are easy to use physical therapy programs that are critical elements in reducing the effects of diabetes and cardiovascular disease and have the potential to dramatically reduce the overall healthcare expenditures associated with these diseases. DMpts are complete and comprehensive programs that include patient evaluation and testing, exercise intervention and exercise demonstration, all based around on-line program monitoring and follow-up. DMpts yield the most beneficial exercise prescription in achieving optimal patient outcomes and results.
While the Medical Device business is gaining momentum, our historical businesses continue to perform as expected. Estimated consolidated revenues for fiscal 2013 increased almost 18% to $2.0 million compared to $1.7 million for fiscal 2012. Estimated net loss for fiscal 2013 shrank to $10.9 million, compared to almost $18.0 million in the prior year. At December 31, 2013, cash and accounts receivables were approximately $2.1 million compared to cash and accounts receivables of $1.3 million for the prior year.
We are focused on building a sustainable foundation for the Medical Device business, which we believe will be the key driver of Millennium's future growth. We are adding nursing and technical staff to support the rollout and installation of our devices, as well as senior operational executives to manage expansion. We are capitalizing on more than 160 existing client relationships within our practice management business for direct sales of devices to primary care physician practices. We have executed contracts with more than 300 new primary care physician practices and consortiums for installations over the coming year. Over the remainder of this year, we anticipate signing additional network selling agreements for an additional estimated 1,000 locations. These contracts include minimum usage requirements for devices that we believe have the potential to deliver over $150 million dollars in revenues over the next year, once installations are completed and initial reimbursement cycles have been concluded.
We have strengthened our balance sheet since the beginning of 2014 by closing a $3 million raise in new capital through the issuance of preferred stock units and aggressively paying down existing debt. We plan to continue to augment our financial resources over the coming months to expedite the rollout of devices to primary care physicians with whom we have already executed contracts.
There is a lot to accomplish over the remainder of 2014, but we are extremely pleased by the initial response of the device companies and the physician community to our Medical Device business. We look forward to completing our initial rollout and demonstrating the success of our model. We thank all of our partners, employees, participating physicians and shareholders for your support."
Audited financial results may be found in the Company's annual report on Form 10-K to be filed on or before April 15, 2014.
About Millennium HealthCare Inc.
Millennium HealthCare Inc. through its wholly owned operating subsidiaries provides primary care physician practices, physician groups and healthcare facilities of all sizes with cutting edge medical devices focused primarily on preventive care through early detection. The Company also provides advanced billing and coding services and practice development and management services.
This press release contains certain statements that may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Forward-looking statements are identified by such words and phrases as "we expect," "expected to," "estimates," "estimated," "current outlook," "we look forward to," "would equate to," "projects," "projections," "projected to be," "anticipates," "anticipated," "we believe," "could be," and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. Because they are forward-looking, they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of this release.
SOURCE Millennium HealthCare Inc.