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CML HealthCare Announces New Funding Agreement for Lab Services
Toronto Stock Exchange Symbol: CLC.UN MISSISSAUGA, ON, Dec. 17 /CNW/ - CML HealthCare Income Fund...
About this update from Christina Lake Cannabis Corp
[{"type":"text","content":"\n\n\n\nToronto Stock Exchange Symbol: CLC.UN\n\n\nMISSISSAUGA, ON, Dec. 17 /CNW/ - CML HealthCare Income Fund (the "Fund"\nor "CML HealthCare") (TSX: CLC.UN) today announced that the Ontario\nAssociation of Medical Laboratories ("OAML") has entered into a new three-year\nfunding agreement (the "Agreement") with the Ontario Ministry of Health and\nLong-Term Care ("MOH"). Under terms of the Agreement, which is retroactive to\nApril 1, 2008, the MOH has increased the provincial payment cap for laboratory\nservices to OAML members to $628.4 million for the MOH year ending March 31,\n2009 ("Year One"), representing an increase of $18.3 million or 3% compared to\nthe $610.1 million in funding for the MOH year ended March 31, 2008. For the\nMOH year ending March 31, 2010 ("Year Two"), the MOH will increase the base\nprovincial payment cap to $640.9 million, representing an increase of $12.6\nmillion or 2% compared to Year One. For the MOH year ending March 31, 2011\n("Year Three") the MOH will increase the base provincial payment cap to $649.3\nmillion, representing an increase of $8.3 million or 1.3% compared to Year\nTwo.\n\n\nSimilar to the previous funding agreement, the Agreement also includes\nadditional funding in Year Two and Year Three, provided industry billings\nexceed certain thresholds. Additional funding in Year Two amounts to a maximum\nof $4.9 million and a maximum of $5.9 million in Year Three. Additional\nfunding earned in Year Three will be added to the provincial payment cap at\nthe end of the three-year term.\n\n\n"While the increases to the funding agreement may appear modest, CML and\nthe OAML appreciate the current challenging economic environment faced by the\nprovince of Ontario. As always, CML will cooperate and support the ongoing\nshared responsibility between the MOH and OAML to ensure a continued high\nlevel of laboratory testing patient services and with respect for the\nlong-term prosperity in Ontario," said Paul Bristow, President and CEO of CML\nHealthCare Income Fund. "The new agreement further supports our laboratory\nservices business, providing continued stable cash flow going forward."\n\n\nThe following table provides a summary of the industry funding in\naccordance with the Agreement. CML Health...