HOUSTON, Jan. 30,
2024 /PRNewswire/ -- Nutex Health Inc. ("Nutex
Health" or the "Company") (NASDAQ: NUTX), a physician-led,
technology-enabled integrated healthcare delivery system comprised
of 20 state-of-the-art micro hospitals in 8 states and primary
care-centric, risk-bearing physician networks, today announces full
payoff of Yorkville Advisors and a new streamlined strategic
plan.
- Nutex has paid off in full the remaining outstanding balance of
$2.7 million under the Pre-Paid
Advance Agreement, in lieu of future stock issuances at the
discretion of Yorkville Advisors. The company believes that this
will mitigate the recent downward pressure on its share price and
strengthen Nutex Health's financial position.
- In line with our commitment to the continuous optimization of
our portfolio companies, the company has made the strategic
decision to close two underperforming hospitals: SE Texas ER &
Hospital in Humble (Houston), Texas, and Coppell ER in Coppell (Dallas), Texas. The combined annual cash flow savings
from closing both facilities is expected to be approximately
$5 million. This strategic move
ensures a more focused allocation of resources and underscores our
dedication to financial sustainability and profitability.
- A targeted reduction in annual cash operating expenses.
Management is in the process of implementing multiple initiatives
which we believe will reduce cash operating expenses in 2024 and
beyond, with an intense focus on profitability. The full
effects of the new operating cost structure are expected to be in
place by the third quarter of fiscal year 2024.
Additionally, the Company announces the following
developments:
- On January 25, 2004, Nutex Health
closed on an offering of $10 million
of shares of common stock and warrants with a health care focused
institutional investor. This capital infusion will play a role in
financing the operations of several of the new micro
hospitals.
- Effective January 1, 2024, in
consultation with the Departments of Labor and Health and Human
Services, the Internal Revenue Service (IRS) announced the annual
increase that health plans must apply to the calculation of the
qualifying payment amount (QPA) for insurance reimbursements to
account for inflation from 2023 to 2024 (Notice 2024-1). Under the
No Surprises Act, QPAs are calculated based on median contracted
rates for the same or similar services as they existed in
2019. Treasury Regulations direct the IRS to anchor
the annual inflationary update in the Consumer Price Index for All
Urban Consumers (CPI-U). In Notice 2024-1, the IRS
directs health plans to update QPAs in 2024 by an increase of 5.4%
over 2023 QPAs. Alternatively, to update 2023 rates, health
plans may return to the original 2019 calculation and apply a
cumulative update factor to account for
the IRS inflationary updates from 2019 to
2024. Under that approach, the cumulative update that must be
applied to 2019 base year rates is 20.9%.
- Despite recent macroeconomic challenges, Nutex Health remains
steadfast in its commitment to growth. The company is on track to
opening five new micro hospitals in 2024, strategically located in
growth markets including Green Bay,
WI, Milwaukee, WI,
Tampa, FL, San Antonio, TX, and Coeur d'Alene, ID.
"Nutex Health firmly believes that micro hospitals are the
future of healthcare. For 2024, our goals are to increase
revenue through both patient volumes as well as
reimbursement. Additionally, we plan to tackle the
ever-increasing cost of delivering quality medical care head-on as
part of our strategic plan. Our goals are to increase
profitability in 2024 without any compromise on our usual excellent
patient care and satisfaction," stated Tom
Vo, M.D., MBA, Chairman and Chief Executive Officer of Nutex
Health.
About Nutex Health Inc.
Headquartered in Houston, Texas
and founded in 2011, Nutex Health Inc. (NASDAQ: NUTX) is a
healthcare management and operations company with two divisions: a
Hospital Division and a Population Health Management Division.
The Hospital Division owns, develops and operates innovative
health care models, including micro-hospitals, specialty hospitals,
and hospital outpatient departments (HOPDs). This division owns and
operates 20 facilities in 8 states.
The Population Health Management division owns and operates
provider networks such as Independent Physician Associations
(IPAs). Through our Management Services Organization (MSO), we
provide management, administrative and other support services to
our affiliated hospitals and physician groups. Our cloud-based
proprietary technology platform aggregates clinical and claims data
across multiple settings, information systems and sources to create
a holistic view of patients and providers, allowing us to deliver
greater quality care more efficiently.
Forward-Looking Statements
Certain statements and information included in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Act of 1995. When used in this
press release, the words or phrases "will", "will likely result,"
"expected to," "expects 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, many of which are beyond the control of the
Company. Such uncertainties and risks include, but are not
limited to, our ability to successfully execute our growth
strategy, changes in laws or regulations, including final rules
implemented under the No Surprises Act and related regulatory
guidance, economic conditions, dependence on management, dilution
to stockholders, lack of capital, the effects of rapid growth upon
the Company and the ability of management to effectively respond to
the growth and demand for products and services of the Company,
newly developing technologies, the Company's ability to compete,
conflicts of interest in related party transactions, regulatory
matters, protection of technology, lack of industry standards, the
effects of competition and the ability of the Company to obtain
future financing. An extensive list of factors that can affect
future results are discussed in the Annual Report on Form 10-K for
the year ended December 31, 2022 and
the Current Reports on Form 10-Q for the periods ended March 31, 2023, June 30,
2023 and September 30, 2023
under the heading "Risk Factors" in Part I, Item IA thereof, and
other documents filed from time to time with the Securities and
Exchange Commission. 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.
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SOURCE Nutex Health, Inc.