GARDEN CITY, N.Y., Aug. 21, 2014 /PRNewswire/ -- Millennium Healthcare Inc. (OTCBB: MHCC) today issued a statement from its Chief Executive Officer, Dominick Sartorio, providing an update on recent corporate developments. The statement is included in its entirety below:
Millennium Medical Devices has begun the official launch of its current product lines. The product launch marks the conclusion of product beta testing and the initiation and development of product roll out and revenues for the Company. The Company is now focused on product distribution, execution, and training for the previously announced 1,300 locations now in our distribution network through various network selling agreements.
Beta testing for product usage was completed through June with a soft product roll out and revenue capture beginning in July. Beta testing proved to be a great success and has provided the Company with valuable training information along with product acceptance, implementation and usage data. Beta testing for OralCDx and Vasoscan was conducted in selected locations on the East Coast.
With product rollout initially launched in five states, David Perry, Millennium Chief Operating Officer stated, "Recently, a Millennium Healthcare team was dispatched for product implementation comprised of a key physician, a medical assistant and a certified representative, which, collectively executed the Company's first round of installations with outstanding results." Mr. Perry continued, "With the conclusion of the beta test phase for our first two products, OralCDx, an oral cancer biopsy test and Vasoscan, a cardiovascular diagnostic assessment test, initial usage levels have exceeded our internal expectations. Vasoscan testing done in physician offices during beta testing were at an average 19.7 tests per day per office. The soft launch of the OralCDx product within our network averaged initial physician stocking orders of 100 kits per location with an average reorder rate of 92%. This demonstrates a high level of adoption and integration of the OralCDx technology."
With the passing of the Affordable Care Act, we feel we have established a solid foundation for growth as we anticipate experiencing strong demand from the primary care physician community for our innovative and preventative diagnostic products.
Our core business model is directed to the approximately 400,000 primary care physicians in the United States today. With the recent introduction of the Affordable Care Act in January 2014, physicians within our network are potentially looking to provide clinical tests that can diagnose cardiovascular disease, oral cancer, and skin cancer on the front line. All of these diagnostic tests may provide early diagnosis and treatment of life threatening diseases, while potentially providing new reimbursement revenue streams for the physician. It is these innovative, ground-breaking diagnostic tests, supported by the Affordable Care Act with potentially strong reimbursements to physicians that have contributed to the anticipated high rate of penetration and integration within our network. We initiated our soft launch during July and anticipate recognizing these revenues in the third quarter as we continue building the infrastructure for a full launch.
Mr. Perry commented, "We are anticipating a dramatic increase in revenues in the third quarter, and an even more significant increase in the fourth quarter 2014. We are rolling out our technology every day to new physicians with an outstanding rate of usage and integration. Training and integration have been key thus far during our soft launch."
We have raised over $6.5 million in net proceeds through private placements and debt financing in order to fund the development and growth of our operations and pay down prior obligations. At June 30, 2014, we had $2.0 million in cash and receivables on our balance sheet. This liquidity allows us to execute our business plan throughout the East Coast.
This is a pivotal time for our company. We have worked diligently to assist our healthcare partners and alliances with the necessary training to become effectively and efficiently integrated with the use of our product lines. We now continue to focus on our business plan and the execution of our rollout so that the Company can create value for our shareholders.
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.
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SOURCE Millennium Healthcare Inc.