- Company wins one of the largest EMR contracts ever awarded in Canada -
- Company to deploy EMR and practice management solution in French and English to 83 primary health care centres -
- Company to host a conference call December 7th at 8:30 a.m. -
MARKHAM, ON, Dec. 6, 2011 /CNW/ - Nightingale Informatix Corporation (TSX-V: NGH) "Nightingale" or "Company", an application service provider (ASP) of electronic medical record (EMR) software and related services, today announced it has signed a ten-year contract with the Association of Ontario Health Centres (AOHC) to provide its leading EMR and practice management solution, Nightingale On Demand (NOD), to Community Health Centres (CHCs) and Aboriginal Health Access Centres (AHACs) across Ontario.
The agreement is one of the single largest EMR contracts ever awarded in Canada. It covers approximately 3,500 health care providers at 83 CHCs and AHACs across Ontario. Nightingale expects to recognize more than $9 million in revenue and cash from this contract over the first three years. Deployment will start in early 2012 and is expected to be completed over a two year period.
"This agreement represents a transformational event for Nightingale, as it clearly establishes us as the EMR market leader not only in Ontario, but also across Canada," said Sam Chebib, President and CEO of Nightingale. "Once fully deployed, we will have doubled our Canadian user base, positioning us as the largest EMR vendor in the country. In addition, our success in surpassing the stringent technical and financial requirements set out by the AOHC selection committee is a true testament to the strength of our EMR offering and the company as a whole. We look forward to working with the AOHC and its member organizations to help deliver enhanced care to hundreds of thousands of their clients throughout Ontario."
"A provincial EMR licence that covers our members at a fair price is a significant achievement for the sector," said Adrianna Tetley, Executive Director of the AOHC. "It ensures our members are aligned with the provincial direction for electronic medical records, and well-positioned to benefit from current and future electronic health system solutions."
The AOHC undertook an extensive evaluation process to select a partner for the deployment, and selected Nightingale based on the Company's track record of successful EMR deployments, technology leadership, demonstrated experience in other jurisdictions, as well as the comprehensive functionality of Nightingale On Demand. The AOHC mandated that the selected vendor deploy its EMR solution in an ASP (hosted) model, recognizing that a web-based EMR offering is cost effective and provides the best security for patient information. Nightingale will deploy its integrated EMR and practice management solution, Nightingale On Demand, in both official languages (French and English) through its ASP data centre at eHealth Ontario.
"As seen with our AOHC win, EMR adoption across North America is extending beyond physician-led clinics to include the broader delivery of health care services through community-based health centres," added Mr. Chebib. "This trend is expanding the overall EMR market opportunity. As a true bilingual EMR service provider, we are positioned to accelerate our market penetration in regions of Canada where French is a requirement."
The agreement between the AOHC and Nightingale provides the AOHC with a provincial license for all current and future CHCs and AHACs, as well as Nurse Practitioner-Led Clinics (NPLC) and Community Family Health Teams (CFHT). This represents an anticipated value of more than $9 million over the first three years and up to $17 million over the ten-year life of the agreement. The recurring revenue component of the agreement is linked to the growth of the public health sector governed under the AOHC mandate.
Conference call details
Nightingale will host a conference call on Wednesday, December 7, 2011, at 8:30 a.m. Eastern Standard Time. To access the conference call, dial (888) 231-8191 or (647) 427-7450. Please connect approximately fifteen minutes prior to the call, and reference conference ID 31809456 prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Wednesday, December14, 2011. To access the archived conference call, dial 416-849-0833 or 1-855-859-2056 and enter reference 31809456#. To listen to the conference call replay on the internet, please visit the Nightingale website shortly after the call at www.nightingalemd.com.
About Nightingale Informatix Corporation (www.nightingalemd.com)
Nightingale is one of the fastest growing health care service and software companies in North America and is recognized as an industry leader in Web-based clinician and community based electronic medical records (EMR) serving the needs of small primary care practices, multi-physician outpatient clinics, and large scale regional health organizations and networks. Coupled with integrated practice management, transcription and revenue cycle management, Nightingale's comprehensive service offering allows customers to enhance patient care, increase revenue opportunities and optimize operations. Nightingale is continuously innovating and enhancing its services to meet the needs of its growing and diverse customer base. Nightingale - Health care connected. www.nightingalemd.com
About the Association of Ontario Health Centres
Representing more than 120 health care organizations, the Association of Ontario Health Centres is Ontario's voice for community-governed primary health care. Members include Community Health Centres, Aboriginal Health Access Centres, Nurse Practitioner-Led Clinics and Community Family Health Teams.
AOHC member centres work hand in hand with those they serve. Each is governed by a board made up of clients, community members, health providers and community leaders. Community governance enables health services to be more easily oriented towards what community members identify as their most important needs. www.aohc.org
This press release contains "forward-looking statements" respecting the issuance and cancellation of securities of the Company within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nightingale to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the likelihood of Nightingale realizing the stated anticipated value of any third party contracts including, without limitation, the AOHC contract; and the possibility that such contracts could be materially amended or terminated during their term, thereby materially reducing the stated anticipated value; risks related to the speculative nature of the medical software industry, which is affected by numerous factors beyond Nightingale's control; the ability of Nightingale to successfully integrate its acquisitions and any liabilities arising as a result of such acquisitions, access to capital and agreements with its Lenders; the existence of present and possible future government regulation; access to debt or equity financing and agreements with its Lenders; the significant and increasing competition that exists in the medical software industry; the early stage of Nightingale's business; and therefore it is subject to the risks associated with early stage companies, including uncertainty of revenues, markets and profitability and the need to raise additional funding. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although management believes the assumptions used to make such statements are reasonable at this time, our assumptions may not to be as anticipated, estimated or intended. Certain material factors or assumptions applied by management in making forward-looking statements, include without limitation, factors and assumptions regarding Nightingale's continued ability to fund its business, rates of customer defaults, relationships with, and payments to, lenders, demand for Nightingale's products, as well as Nightingale's operating cost structure.
Although Nightingale has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Nightingale does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Further information on Nightingale Informatix Corporation is available at www.sedar.com.
Neither the 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.
Kristen Dickson, M.Sc.
Equicom, a TMX Group Company
Tel: 416.815.0700 ext. 273