Ethema Health Corp (GRST)

[Rsarabjit]

ARIA Treatment Facility Fully Licensed

Link: https://www.otcmarkets.com/stock/GRST/news/story?e&id=1784097

West Palm Beach, FL, Jan. 13, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) is pleased to announce that the audit for the full licensing of the ARIA treatment facility by the Department of Children and Family Service for Florida (“DCF”) which commenced on December 10, 2020 has resulted in the issuance of a full license for all five levels of care that ARIA provides. The issuance of the full licenses for each level of care were staggered and the full licenses for the final two levels of care were received January 12, 2021.  The Company previously announced that it had expected the process to take several days and instead took just over a month.  The licensing process has become far more arduous in recent months due to many new requirements by DCF and it has been in many ways a new experience for the providers and DCF.  The scores that ARIA received for the various categories graded, averaged just under 99%, with no individual score under 98%.  This granting of the full licenses will allow ARIA to move forward with the pursuit of in-network contracts with various insurers. 

ARIA finished November and December with out-of-network gross billing of $602,200.00.  The rate paid by insurers on out-of-network billings varies by insurer and under GAAP accounting rules, providers are required to report gross billings based on the date of service with a reserve or contingency for uncollectable amounts resulting in the net reported income for any period.   The net reported income number is reported in the Company’s quarterly and annual filings.  Initial billings for a new provider often take several months to get set up with insurers before a provider will start receiving payments.  ARIA received its first payment on January 8, 2021, only 69 days after its first date of service.  This is a tremendous result thanks to the great work of ARIA’s contracted third-party billing company.  

The Company previously reported the restructuring of the debt due to Leonite Capital LLC (“Leonite”) whereby the bulk of the debt was converted to preferred shares in the Company and one of the Company’s subsidiaries, with the remainder written down to $150,000 (the “Remainder Portion”).  Under this agreement the Company and Leonite agreed that there would not be any conversions at any time prior to October 31, 2020 and allowed thereafter.  The company received conversion notices to convert the debt to shares and the shares were issued on December 31, 2020 and January 12, 2021 in full satisfaction of the Remainder Portion of the Leonite debt.