SAVANNAH, Ga., April 7, 2014 (GLOBE NEWSWIRE) -- In 1789, Ben Franklin stated: "Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes."
You can now add the Affordable Care Act (ACA) to Mr. Franklin's list.
Driven by the demands of aging baby boomers and those forced to enroll in the Obama administration's Affordable Care Act, the patient out of pocket costs are expected to rise exponentially. Without some major changes, everyone from doctors to hospitals to insurers--will be under increasing pressure to deliver their services more efficiently for less revenue, which will result in patient compassion falling to the wayside.
"With millions of additional people entering the market through the ACA the demands on the large hospital will be overwhelming, meaning that services will have to be outsourced to save money, MIT is standing by ready to help with the new influx of patients that need outpatient services", stated Walter Drakeford, President and Chairman of MIT Holding Inc. (OTCQB:MITD) in an exclusive interview with Financial Press.
The challenge becomes delivering medical services at a lower cost. Medical infusion services are a perfect example. Following major surgery, or as a result of an illness, a patient may need to be infused with powerful medications over a period of three to four hours either daily or over an extended treatment plan. Currently costs to the healthcare system can reach $11 billion a year. Moving this therapy to the home or an alternate care facility, administered by appropriate professionals with a lower fixed cost, will be more cost-effective than the current inpatient treatment at a hospital.
Doctors, Clinics, Hospitals and other medical service facilities are desperately trying to figure out the ACA and the impact on their businesses. MIT has organized itself to begin acquiring these companies in a strategic manner that will build a national and global network of companies that handle the actual patient contact, either in home or in one of their facilities.
MIT Holding has three business services to offer: infusion services, compounding pharmaceuticals and durable medical equipment, with the main focus on patient care.
MIT is aware of the need for patient service and compassion. Mr. Drakeford notes; "We are more interested in the time we spend with the patient. The more we personalize our services to the patient; the more services that patient will use and benefit from. MIT intends to fill the extreme lack of 'institutional' confidence with highly qualified people licensed for any given service. These individuals will be trained in cross marketing our goods and services particularly if it is in the best interest of the patient physically, mentally and financially."
Among many initiatives, MIT will become a leader in closed-door pharmacy operations. These businesses are pharmacies that deal with institutions as opposed to street level retail. Closed-door pharmacies service not only their patient base but also nursing homes, prisons, hospitals and assisted living facilities. Revenues range from $3-$15 million a year allowing MIT to maximize efficiency and profits while drastically lowering costs.
MIT has an ambitious growth strategy. Mr. Drakeford and his team have laid the groundwork for a successful roll out of their business plan. They have re-organized and hired a quality management team. When Mr. Drakeford took control of operations, the short-term goals were being met, putting the long-term goals on an accelerated track. He terminated a number of projects that were not allowing the company to grow profitably.
The Company is re-launching with revenues of around $2.5 million. Management feels that the current situation has the potential to double their sales this year even without acquisitions. The company is presently looking to acquire closed-door pharmacies, clinics or durable medical equipment outlets, which are financially profitable and well operated.
While there is competition in the market, MIT is not aware of anyone attempting its business model: interlocking services under one roof at a lower cost to enhance efficiencies and ultimately the shareholder value.
MIT is a unique company and provides an opportunity for investors because they have a business model that can provide the necessary medical services and equipment to families that rely solely on them for fast quality response times, low cost services and individualized patient care. When a mother needs help in order to feed her child, she can turn to MIT for immediate compassion and service to insure that her child is cared for unconditionally.
And if that isn't reason enough for investors to take note, perhaps the Company's latest guidance will help to convince. On March 13th, the Company released guidance, forecasting FY 2014 revenues could hit $10-$15 million with a 30% pretax profit.
Shares are currently trading at $0.17 with a modest market cap of $4.9 million.
For complete SEC Filings for MIT, please click here.
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CONTACT: MIT Holding, Inc William Nalley 305-790-2688Source:MIT Holding, Inc