SALT LAKE CITY - KindlyMD, Inc. (NASDAQ:KDLY), a healthcare company that combines traditional and alternative therapies, announced a new contract with UnitedHealthcare Insurance Company, the largest health insurer in the U.S. Starting November 1, 2024, KindlyMD will serve UnitedHealthcare-insured patients, enabling the company to receive reimbursements for its services.
The agreement is expected to broaden KindlyMD's patient base in Utah, as it will include referrals from additional major hospitals and medical systems. This partnership follows previous arrangements with insurers such as Blue Cross Blue Shield, Medicare, Select Health, and Medicaid, and represents a significant expansion for KindlyMD’s coverage capabilities.
Tim Pickett, PA-C, Founder and CEO of KindlyMD, emphasized that the credentialing with UnitedHealthcare is a critical milestone for the company and its patients. He noted that the broader insurance coverage could reduce patients' out-of-pocket expenses and potentially drive revenue growth for KindlyMD’s core services.
KindlyMD operates four centers in Utah, including the state's largest alternative pain treatment center. The company focuses on holistic pain management and reducing opioid addiction and dependency in the U.S. Its approach includes traditional primary care, pain management strategies, integrated behavioral therapies, and, where appropriate, medical cannabis recommendations.
The company's press release included forward-looking statements subject to risks and uncertainties. It cautioned that these statements are not guarantees of future performance and that actual results could differ materially from those projected.
This news is based on a press release statement from KindlyMD, Inc.
In other recent news, healthcare data company KindlyMD has announced the appointment of Dr. Jeremy Joyal as its new Medical Director. With a focus on enhancing patient care, Dr. Joyal will be responsible for overseeing the firm's clinical operations and the development of pain management program protocols. His extensive background in Anesthesiology, Pain Medicine, and Addiction Medicine is expected to bolster KindlyMD's clinical practices.
Dr. Joyal, a graduate of Brigham Young University and the Medical College of Wisconsin, brings to the table a strong connection to the interventional pain space and a supportive stance on mental health and medical cannabis treatment. His commitment to innovative and compassionate pain management approaches is seen as a significant asset to KindlyMD's operations.
These recent developments come as part of KindlyMD's ongoing commitment to patient care and its strategic approach to reducing opioid addiction and dependency in the U.S. However, the company's forward-looking statements do come with a note of caution, advising investors to review risk factors that could potentially affect future performance.
InvestingPro Insights
While KindlyMD's new contract with UnitedHealthcare Insurance Company presents a significant opportunity for expanding its patient base and potentially driving revenue growth, recent financial data from InvestingPro paints a challenging picture for the company.
According to InvestingPro data, KindlyMD's revenue for the last twelve months as of Q2 2023 stood at $3.1 million, with a concerning revenue growth decline of -24.94% over the same period. This decline is even more pronounced in the quarterly figures, with Q2 2023 showing a -34.76% revenue drop compared to the previous year.
InvestingPro Tips highlight that KindlyMD is "quickly burning through cash" and "not profitable over the last twelve months." These factors may explain why the company is aggressively pursuing partnerships with major insurers to broaden its revenue streams. The gross profit margin is also a concern, with InvestingPro noting that KindlyMD "suffers from weak gross profit margins."
On a positive note, one InvestingPro Tip indicates that KindlyMD "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company works to capitalize on its new insurance partnerships.
Investors should note that KindlyMD's stock performance has been challenging, with InvestingPro data showing a -63.91% price return over the past year. This decline aligns with another InvestingPro Tip stating that the "stock has taken a big hit over the last six months."
For those seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for KindlyMD, providing a deeper understanding of the company's financial health and market position.
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