SIMH operates three wholly-owned subsidiaries:Thermomedics, Anovent and SanoER
Thermomedics launched this Caregiver through McKesson, and gained initial penetration of this $75 million market when it signed a three-year distribution contract for $4.2 million (28,000 devices) with Kentec, a 40 year old specialty medical distributor based in southern California. SIMH has seen sales of this device through Kentec ramp somewhat this year, and expects much stronger sales in 2015. It eventually believes it can capture 25% of this market, equating to annual revenues of approximately $18 million.
Anovent: Medical/Dental staffing is the other highly lucrative industry in which Sanomedics is targeting acquisitions (under LOI and working on final details of transaction). Target is a global health care company that provides a wide range of health care resources and services to Department of Defense (DOD) and Veterans Administration (VA) clients. The Company’s current primary acquisition target has recurring Dept. of Defense contracts as well as other medical and dental placement contracts with the U.S. Government, and is operating at revenue run-rate of $31 million in 2013 with $113 million in its contract pipeline. Given managements’ strong background in the medical and recruiting industries and the highly fragmented nature of this industry, management expects to make additional attractive acquisitions in the near future.
* New U.S. Government contracts in the medical staffing industry have a potential future value over 5 years of $2.26 Billion
SanoER: Was formed to develop, manage/operate, and acquire Freestanding Emergency Rooms (FSER) and provide the best possible experience and outcome for patients and physicians.
* 24/7 Emergency Care / Board-Certified Physicians / Latest technology and Equipment Diagnostic imaging technology / On-site laboratories which provide results in minutes SanoER Intends to focus on providing emergency care through freestanding emergency rooms with the goal of improving the quality of care and enhancing the overall experience for patients and physicians. Freestanding emergency care facilities are just becoming legal in many states such as Texas (16 states as of today); these for-profit facilities accept only self-pay or private insurance patients, offer superior emergency care, and boast average revenues per visit of $500 - $1,000 vs. just $100 - $250 for a traditional doctor’s office visit. Initial financial results indicate that these are highly profitable facilities, and the Company’s recently announced LOI to acquire a 5,000 sq. foot Texas facility headed by Dr. Richard Ybarra bodes well for SIMH in this space.
