When reading PRs like this one I have to really focus on what is written.
IRVINE, Calif., March 3, 2015 -- Praxsyn Corporation (OTCQB:PXYN (link is external)) announces that its wholly owned subsidiary, Mesa Pharmacy Inc. (Mesa), has final committed amounts in excess of $4 million for approved preferred provider organization (PPO) claims dating from February 1, 2015 through February 28, 2015 from 15 of its 28 licensed states across the country. The commitment of these claims has been accomplished through its previously announced marketing agreement with NHS Pharma, Inc. Marketing and billing costs are still applicable at industry standards of 55 percent of the total amount billed.
"The benefit of PPO is that every claim is approved at the billed amount and at the point of service," said Edward Kurtz, Chief Executive Officer, Praxsyn Corporation. "Insurance companies are committed to pay the total amount billed within 30-90 days of the prescription being filled. This eliminates the need for Mesa to finance their PPO claims.
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It looks like the insurance companies have contractually agreed to pay Mesa $4 million. It also looks like NHS gets 55% of that.
That would equate to $1.8 million left over before operating expenses. Sounds like a better deal than the factoring they were doing. Times 12 would be $21.6 net revenues for 2015. My terminology is probably wrong because healthcare billing is a nightmare. But looks like PXYN overcoming their startup issues and turning corner to solid footing. I expect a share price at or above .06 after the 10Q even with the TPS/factoring transitions during 4th Q.
