Telehealth company Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN) announced it has started using artificial intelligence (AI) and machine learning (ML) with two of the clients on its platform.
Its iUGO platform draws on data from fall detection devices, medication tracking, and vitals data to flag patients at home or in facilities who need more monitoring. The AI and ML tools will enable caregivers to provide "predictive, pro-active health care," Reliq Chief Executive Officer Lisa Crossley said.
"Using AI and ML enables the iUGO Care platform to analyze large, complex data sets to improve decision-making, diagnosis, and treatment by identifying patterns in patient data," Crossley said. "The AI system is trained by having access to thousands of sets of remote patient monitoring data, which allows it to recognize warning signs very early and predict which patients are at risk of potentially serious complications."
She said the new tools had been put in place for two key customers, Just Heart Cardiovascular Group in Baltimore and digiiMed in Puerto Rico. It is now also available for all iUGO users.
The Catalyst: AI Moves to 'Center of Organizations'
According to a report by Grand View Research, the global AI market was valued at US$136.55 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030.
Continuous research and innovation by tech giants are driving the adoption of AI in industries like health care, retail, finance, and manufacturing, the report said.
According to a report by Grand View Research, the global AI market was valued at US$136.55 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030.
"Technology has always been an essential element for these industries, but artificial intelligence (AI) has brought technology to the center of organizations," the report said. "For instance, from self-driving vehicles to crucial life-saving medical gear, AI is being infused virtually into every apparatus and program."
In a June 20 research note, Maxim Group analyst Allen Klee noted that Reliq has been signing larger contracts in 2022 and 2023. It recently picked up skilled nursing facilities (SNFs) and home care agencies in four states and signed a contract with a U.S. health plan that operates in five states with more than 3,000 doctors and 1 million patients. It also has signed its first contract with a client in Mexico.
"We believe a discount to the peer group average is warranted based on the company being at an early stage of execution," wrote Klee, who gave the stock a Buy rating and a CA$1.75 per share target price. "We project that Reliq will have a primarily recurring, high-margin business model going forward."
A Predictive Model
Just Heart Cardiovascular Group is using the AI and ML features of iUGO to improve remote patient monitoring adherence and to develop a predictive model designed to slow heart failure progression, reduce hospitalization, and decrease the cost of care.
"We have over four years of patient data that has been gathered using the iUGO Care platform, with tens of thousands of data points collected from a diverse population of cardiovascular patients," said Dr. Camellus O. Ezeugwu, assistant professor of medicine at Johns Hopkins University School of Medicine and medical director at Just Heart Cardiovascular Group. "This data, coupled with AI and ML, allows us to leverage the power of the iUGO Care platform to provide cutting-edge care to our patients, improving health outcomes and quality of life."
Maxim Group analyst Allen Klee gave the stock a Buy rating and a CA$1.75 per share target price. "We project that Reliq will have a primarily recurring, high-margin business model going forward," he said.
The other customer using AI and ML, digiiMed, said it has been using the platform for more than three years across multiple practices and clinics in Puerto Rico and the Virgin Islands. The platform has improved patient outcomes and increased revenues for providers, said Chief Executive Officer Jose Alvarez.
"We have taken the next step in our evolution of providing the best health care at the lowest cost by utilizing iUGO Care's artificial intelligence and machine learning to analyze vast amounts of patient data to more accurately prioritize those patients who are most at risk of developing complications," Alvarez said.
Patients have lower chances of developing serious complications the earlier doctors can intervene with virtual visits or to adjust medication, he said.
A 'Compelling' Platform for Practitioners
The iUGO platform aims to manage diseases such as chronic obstructive pulmonary disease (COPD), congestive heart failure, diabetes, hypertension, and others. Patients get audible reminders to step on a scale, take their blood pressure, or prick their fingers for glucose monitoring. The information is automatically uploaded to the cloud.
iUGO draws on data from fall detection devices, medication tracking, and vitals data to flag patients at home or in facilities who need additional monitoring.
Analyst Klee noted that the platform is a "compelling offer for practitioners," as a typical practice can bring in more than US$1 million in Medicare and Medicaid payments implanting it.
"Reliq’s devices are simple to use and connect to either Wi-Fi or Bluetooth," Klee wrote. "These devices can provide real-time monitoring and identify when adverse events happen. Devices monitor health risks such as glucose, oxygen, weight, blood pressure, risk of falling, and more."
The global telehealth market is expected to reach US$455.3 billion by 2030, with a compound annual growth rate (CAGR) of 24% from 2023 to 2030, according to Research and Markets.
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Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN)
"The pandemic exposed the shortcomings in the health care systems," the researchers wrote. "The government-imposed travel restrictions and lockdowns (mandated) in order to curb the spread of the virus . . . led to patients and healthcare institutions shifting towards teleconsultation and telemedicine."
Ownership and Share Structure
About 8% of Reliq's shares are owned by insiders, including Crossley, with 1.6% or 3.22 million shares. About 0.3% of the company is owned by institutional investors, including FNB Wealth Management, with 0.01% or 0.03 million shares, according to Reuters.
Other top investors include Eugene Beukman, who owns 0.11% or 0.23 million shares, and Brian Storseth, who owns 0.07% or 0.14 million shares, Reuters said.
Crossley said 91.7% of the company is retail.
The company has 203 million shares outstanding, with about 199 million free-floating. It has a market cap of CA$111.59 million and trades in a 52-week range of CA$0.76 and CA$0.445.
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