Clinigence Holdings (“Clinigence”) entered into a letter of intent (LOI) with Accountable Healthcare America (“AHA”) today to bring stock-for-stock merger transaction into light. The letter of Intent received the green signal from the BoD of both the companies.
The merger, if consummated, would combine one of the prominent medical management companies with one of the major healthcare information technology companies to bring forth a dynamic, scalable operating platform which would be well placed to embrace value-based reimbursements, a shift of U.S. healthcare from fee-for-service payments. The proposed merger is expected to bring a robust value proposition to the healthcare industry.
Amid exorbitant costs, onerous billing, technology requirements and transitioning regulations, many medial groups and physicians have been snapping up their practices to larger hospital systems. The potential merger is likely to address these issues in the U.S. healthcare.
Reportedly, Clinigence is gearing to issue common stock of newly issued shares on a fully diluted pro-rata basis to AHA’s equity holders by swapping latter’s 100% of the outstanding equity securities through reverse triangular merger. The reverse triangular merger alludes that Clinigence’s wholly owned subsidiary will merge with and into AHA. While the former Clinigence equity holders will own 20% of issued and outstanding common stock of Clinigence, former AHA equity holders are set to own 80% of issued and outstanding common stock of Clinigence.
About Clinical Holdings, Inc.
Clinical Holdings, a publicly-held company, is a prominent healthcare information technology company offering a cloud-based platform that propels healthcare organizations to offer population health management and value-based care.
About Accountable Healthcare America, Inc.
AHA, a privately-held medical management platform company, boasts of owning and operating an organization with around 26,000 Medicare members via a network of more than 65 providers.
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