Business
Kovo HealthTech Corporation Updates on Revenue Cycle Management (RCM) Market and Acquisition Strategy
US RCM Market Now Valued at Approximately USD$120B* Kovo Acquisition Model Focuses on USD$...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Updates on Revenue Cycle Management (RCM) Market and Acquisition StrategyUS RCM Market Now Valued at Approximately USD$120B*Kovo Acquisition Model Focuses on USD$2-5M Revenue TargetsVancouver, British Columbia--(Newsfile Corp. - September 21, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare technology and Revenue Cycle Management (\"RCM\") software and services — is providing an update on the growing US RCM market and its disciplined acquisition strategy.Kovo Target: Seasoned RCM Operators with USD$2-5 Million Revenue According to Kovo CEO Greg Noble, as disclosed previously, the Company has a disciplined acquisition strategy focused primarily on RCM specialist firms that generate USD$2-5 million consistently — and targets buying $1 of Annual Recurring Revenue (\"ARR\") for every $1 investment of debt or equity. Kovo targets RCM operators with a minimum five year operating track record to ensure consistent and predictable results. Leading US investment banking firm Lawrence, Evans & Co, estimates a pipeline of more than 15,000 US potential acquisition targets operating within the USD$1 to $10 million revenue range. SaaS-Style Business Model Delivers Growth \"We don't buy bricks and mortar clinics, which are costly and complex to operate,\" explains Noble. \"Kovo buys existing, stable RCM contracts and converts them over to our platform under SaaS-style agreements. Historically, this creates a 20-30% increase in efficiencies and adds immediate accretive revenue,\" explains Noble, adding that the Company is currently moving through diligence on its proposed 10th and 11th acquisitions. To date, Kovo has posted 43% year-over-year (YOY) quarterly organic revenue growth on its core RCM software and services business up to the period ending June 30, 2021. Investors can learn more at www.kovo.co and listen to the Company's most recent quarterly investor call featuring Kovo CFO Inder Saini, a public markets veteran and acquisition specialist, Noble and Kovo Executive Chairman and global e-health innovator Dr. Peter Bak. US RCM Market Estimated at USD$120 Billion and Growing RCM is a process used by healthcare providers in the US and globally to digitally track and manage patient care registration, services, billing and payments in a s...