BOCA RATON, Fla., Feb. 06, 2018 —NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
Inspira Financial Inc. (TSX-V:LND) (“Inspira”), a company focused on providing revolving lines of credit, as well as billing and collection services, to the highly fragmented U.S. mental health and addiction services market, provided an update on its completed collector technology.Typically collectors, individuals responsible for calling an insurance payor and following up on unpaid claims, are given a work queue which they manually track and work in an effort to receive payment. Inspira has developed its own technology to automatically track and organize collection queues which prioritize claims and follow ups according to its proprietary algorithms in an effort to improve time management and payment speed.Inspiraâ€™s proprietary system automatically organizes and prioritizes claims, including automatically triggering follow ups based on denial type, according to internal algorithms based on historical collection performance.â€œOur goal is to leverage technology to drive efficiencies and superior results in billing and collecting on substance abuse claims,â€� said CEO David Forstadt. â€œOne area we saw great potential was in the organization and tracking of how our collectors pursue claims. Since weâ€™ve implemented this software advancement in connection with our improved processes, weâ€™ve seen average collection deposits increase more than 20% in the last two months compared to the previous six month average.â€�â€œOur focus over the last six months has been on the completion of technology that significantly differentiates us from the competition,â€� said Mr. Forstadt. â€œWith what we have in place, I am confident we will be able to bring on new revenue over the coming quarters. Iâ€™m also excited about the future technology we are looking to develop. We have the plans for a full end-to-end software system in place, including a unique software app that we believe will open up a new revenue line and expand our ability to provide billing services.â€�About Inspira Financial
The mental health and substance abuse market in the U.S. is a rapidly expanding industry, with current spending exceeding $35 billion. Within this industry, thousands of businesses have annual revenues in the $1 million to $50 million range. Due to the significant increase in addiction treatment as a result of the Parity Act, the large and permanently elevated volumes of claims has led Payors to impose upon facilities in the mental health sector similarly complex reimbursement requirements as those imposed in the physical healthcare sector. Substance abuse facilities tend to use several software applications and a non-automated billing company to document services provided and bill insurance companies. This cumbersome process slows down the tracking, billing and collection process as the customer's billings increase, and were not designed to handle the volume, or level of detail, now required by Payors for prompt payment. As a result, across the mental health and substance abuse industry there are collection delays and consequently a need for capital.Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to Inspira, Inspira bringing on new revenue over the coming quarters. Inspira developing new technology, Inspira having plans for a full end-to-end software system, including a unique software app that Inspira believes will open up a new revenue line and expand its ability to provide billing services, its technology resulting in a competitive advantage, are intended to identify forward-looking information. All figures are in Canadian dollars. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Inspira's current views and intentions with respect to future events, and current information available to Inspira, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including: Inspira successfully being able to finance and develop, internally or through consultants, the new technology and software; and the new technology and software performing as anticipated, including improving and sustaining the turnaround time and success rate of collections; and product adoption of its future app in the marketplace. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, dependence on debt markets and interest rates, demand for the lending products Inspira offers at interest rates higher than at which Inspira can borrow, a novel business model, granting of permits and licenses in a highly regulated business, difficulty integrating newly acquired businesses (including the billing company), risks of performance by the target, new technologies, risk of billing irregularities by borrowers, low profit market segments, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in Inspira's disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect Inspira in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Inspira does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Inspira undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. All amounts herein are in Canadian dollars.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Inspira Financial Inc.
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