In a news release, CloudMD Software & Services Inc. (DOC:TSX.V; DOCRF:OTCQB; 6PH:FSE) announced it entered an agreement to acquire a 51% stake in West Mississauga Medical, an Ontario, Canada-based family and specialty medicine clinic.
The acquisition is in alignment with the part of the telemedicine firm's national growth strategy that is to partner with medical groups in major provinces with established brick-and-mortar patient facilities. West Mississuaga Medical, with eight family physicians and four specialists, serves more than 100,000 patients. Last year, the clinic generated revenue of more than $1.8 million and achieved an EBITDA margin of more than 11%.
CloudMD intends to integrate West Mississauga Medical into its electronic medical records platform, and the clinic's medical professionals will start serving CloudMD's registered users and patients in Ontario immediately.
Also, the Vancouver, British Columbia-based healthcare firm announced in a separate news release that it appointed the medical director of West Mississauga Medical, Dr. Sohal Goyal, as CloudMD's head of corporate development in Ontario. Goyal will lead CloudMD's expansion in that province.
The company noted that Dr. Goyal has a career in the industry that spans 18 years and is a key healthcare opinion leader. He now is a lead physician in a large family health practice and assistant clinical professor of family medicine at McMaster University. He has held numerous leadership positions at various health organizations, has acted as an adviser to numerous public and private companies and has built numerous relationships.
"Having Dr. Goyal on the ground, with his established network, will be extremely valuable for the company's future corporate development," the release noted.
Dr. Essam Hamza, CEO of CloudMD, stated, "We are very excited with this partnership and it represents a major milestone as our company expands nationally. We want to bring access to healthcare to all Canadians while maintaining continuity of care. We are of the view that a platform of strategic, well-established clinics allows us to best leverage our capital for the purpose of on-boarding patients for the digital delivery of healthcare. Dr. Goyal and his team at West Mississauga Medical are pioneers and we are proud to have them join our team. We look forward to his leadership on the ground in Ontario."
"Our goal is to provide a strong, centralized patient base and footprint across the country, and having Dr. Goyal deeply-rooted in the Ontario Healthcare sector will greatly help us in achieving our goal. Dr. Goyals integrated, patient-centric approach to delivering healthcare aligns well with CloudMD's strategy and we look forward to working together moving forward," Dr. Hamza said.
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