Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM), a small but growing publicly traded neuromonitoring and telehealth solutions provider in the neurology space recently announced that the company set a new monthly billing and cash collection record of
In addition, Assure Neuromonitoring, known for providing Joint Commission accredited outsourced IONM or intraoperative neuromonitoring services during complex surgical operations, set a company record of performing more than
If you’re looking to build an early portfolio position in the young telemedicine sector, and want to stick with a “pure-play” investment opportunity… keep an eye on Assure Neuromonitoring
(NASDAQ: IONM | TSX.V: IOM).
IONM identifies real-time changes in spinal cord, brain, and peripheral nerve functions during high-risk surgeries to prevent injuries or accidental damage to patients that could lead to strokes, heart attacks, paralysis or other serious medical issues.
IONM has become the standard of care in U.S healthcare, and Assure employs highly trained, board-certified IONM technologists, which provide a direct point of contact in the operating room to relay critical information to the surgical team while a remote neurologist, offers professional oversight in support of the surgical team.
While some hospitals and surgical centers have retained their own in-house IONM team or use a staffing agency to provide these services, outsourced providers like Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) now make up a majority of the market.
The ability to outsource IONM services allows hospitals and medical facilities to streamline billing and cost, cover skills gaps, and helps ensure patient quality of life after surgery by reducing injuries.
In addition, outsourced providers are gaining ground by providing necessary or “on-demand” resources when a constant, full-time staff isn’t available or needed.
Highly fragmented, the $970 million dollar outsourced IONM market in the U.S. is growing. With a 10.3% compound annual growth rate, the industry is expected to become a $1.1 billion dollar market by 2022.
Larger hospitals and surgical centers who provide their own IONM (“in-house”) services represent an additional $850 million market opportunity as outsourcing opportunities becomes the preferred solution.
Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM), the only publicly traded “pure-play” IONM provider in the market, has grown its network to
While building out the infrastructure to provide upwards of 50,000 procedures over the next few years, Assure Neuromonitoring has seen an
Undeterred by the COVID-19 pandemic, Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) still managed a
Besides providing top quality surgical support and sophisticated medical billing services, a large part of Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) growth strategy has been their strategic acquisitions of smaller competitors.
In less than two years, Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) has acquired three IONM outsourcing providers. The largest acquisition, Sentry Neuromonitoring, increased the company’s procedure volume by more than 50%.
Another factor driving procedure growth at Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) was the company’s March 2021 expansion into telemedicine by launching professional neurology services for IONM.
The telehealth offering is a simple transition as the company replaces a third-party vendor. Bringing the function inside the organization creates a new and valuable revenue stream for Assure and adds organic growth opportunities to the new business development pipeline.
It also sharply reduces cost of delivery, improving margins and profitability. The Company considers its telehealth offering to be a primary growth driver going forward.
Currently, Assure’s telehealth offers neurology services for their own patients and partners. However, it expects to quickly deliver these same services to hospitals and competitors that need a partner to supply telehealth neurology services for IONM.
The third growth leg is the basis for generating new business in adjacent markets that are also served by remote neurology services such as EEG, stroke and epilepsy as the platform broadens.
M&A activity, the launch of telehealth neurology services and continued strong organic growth led to the company raising its 2021 procedure guidance to
Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) is finding the outsourced IONM market ripe with opportunity. With Executive Chairman and CEO John A. Farlinger, recently stating…
“Looking forward, we are focused on supporting and sustaining our rapid growth in scale, building out a robust revenue cycle management function, taking advantage of accretive acquisitions, while fostering swift integrations and launching a telehealth offering for neurologist services that we consider our single most important opportunity.”
Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) is also cornering the market for talent. With only 6,000 trained, board-certified neuromonitoring technologists in the United States, the company now employs more than 80 of them.
Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) has many competitors that are using IONM technicians who are not board certified and therefore unable to provide the surgeons they work with a similar level of clinical support or patient care.
With a solid recruitment strategy in place to hire and train additional IONM technicians alongside an investment in data-driven clinical research relating to the safety and efficacy of IONM, Assure is intent on further improving its 97% year-over-year surgeon retention rate.
Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) 81.9% Compound Annual Growth Rate (CAGR) from 2017-2020 combined with an aggressive growth strategy and a market hungry for outsourced IONM services prompted the company to apply for stock listing on the NASDAQ.
The move completed in September 2021, has exposed Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) to a much larger investor audience.
Founded by former NFL quarterback Preston Parsons in 2015, Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) has quickly become one of the fastest growing providers of outsourced IONM services in the United States.
Parsons, who now serves on the board of directors and is active in the company’s new business development efforts, has helped drive strong organic growth, expanding the company’s operational footprint from its home base of Colorado across 11 states over the past three years.
Executive Chairman and CEO John A. Farlinger has worked to strengthen Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) financial position, launch its telehealth offering for neurology services and spearhead the company’s aggressive M&A strategy.
The approach is paying off for Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) as the decision to terminate an ineffective 3rd party billing provider and bring its revenue cycle management function inside the organization in 2020.
The move led to record annual cash collections of $23.9M in fiscal year 2020. Up from $15.9M in 2019. The Company has invested heavily in automation, data warehousing and leadership talent for this function to drive gains in billing and collections.
The other major factor positively impacting collections at Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) is the development of an in-network revenue stream. These agreements with insurance payors help Assure reduce risk, minimize complexity, accelerate the timing of payments and protect liquidity.
From a financial strength perspective, Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) completed a private placement of $10.5M in December 2020 with significant institutional investor as well as insider participation.
An additional $11 million dollar credit facility secured in June 2021 expanded capitalization of the company’s already strong balance sheet.
Bolstering relationships with insurance companies, surgeons, and hospitals will further strengthen Assure Neuromonitoring (NASDAQ: IONM | TSX.V: IOM) growing position as a leading provider of outsourced IONM services into 2022 and beyond.
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