Most Canadians can identify with the feeling that they simply do not know their doctor, or their healthcare provider, as well as they used to. It’s a problem that erodes not just trust in the system, but the quality of care, as well — but there are solutions available that can help restore to people the feeling of personal care from a physician they know.
Skylight Global Health is just such a solution, offering an emerging opportunity for Canadian investors thanks to the ability of its founder, Pradyum Sekar, to identify trends and needs in the American healthcare sector.
He says, “I have over 15 years experience in Canadian health care in technology, practice management and large multi-disciplinary health centers, and five years ago I identified a significant opportunity to develop a platform for primary care physicians.
“The need for this was simple: a booming seniors population is prone to a lot more chronic illnesses, and to deal with this physicians needed to be more incentivized to increase the provision of long-term care.”
Sekar’s idea was to build a national primary care physician (PCP) platform offering independent PCPs a way to generate income, mitigate certain risks, and participate in genuine value-based care. “Under this model everyone would win,” he says. “Physicians would earn higher premiums and there would be a huge improvement in seniors’ health.”
In co-founding Skylight Global Health five years ago, CEO Sekar presided over the only Canadian company that was participating in the sizeable U.S. health care market, a status that remains intact today. “And business has boomed, especially in the past two years,” he says.
The key metrics supporting Sekar’s claim are impressive. In the past two years the publicly traded Skylight (SLHG: Nasdaq SLHG.V: TSXV) has made nine acquisitions representing 23 medical centers and 83 medical professionals over five key markets – the equivalent of 13,000 Medicare lives and 99,500 primary care lives.
Sekar says, “The acquisitions combined represent over $70 million in annual revenue, and this year we broadened Skylight’s reach to include participation in Medicare programs.”
From an end-user point of view, Skylight represents a radical improvement in health care delivery. As its website states, “We’re committed to providing high quality, compassionate care, and we ensure that our doctors and professionals take time to get to know you, your family, and your needs.”
Care recipients are assured that Skylight’s multi-disciplinary approach combines a range of health care services from primary and urgent care, sub-specialists, allied health & wellness and laboratory / diagnostic testing – all under one roof. Skylight also offers remote patient monitoring and virtual telemedicine to support health care needs outside the clinic. Plus, services are insurable, meaning there are no surprises down the road in terms of cost.
Given these circumstances and Skylight’s achievements to date, Sekar offers investors simultaneous pathways to growth: via strategic, accretive acquisitions; participation in value-based contracting, and expected quarter over quarter growth (top line revenue growth from acquisitions, de novo and improved payer contracts).
Sekar is hardly the only professional driving the success and future potential of Skylight. He is joined by president and co-founder Kash Qureshi, who has over 20 years experience in Canadian health care in technology and wellness development; and chief medical officer Dr. Kit Brekhus, who has over 25 years of clinical experience and developed a health network with more than 250,000 value based care lives.
This executive team is supported by a board of health care and finance experts chaired by Patrick McNamee, former COO of Express Scripts, where he led organic and M&A revenue growth from $3 billion to $120 billion (he was also former CEO at Health Insurance Innovations).
The timing of Skylight couldn’t be better considering the growing interest in value based care overall: large cap players such as Amazon One Medical and CVSHealth SignifyHealth have become major players in this field, driving $4 billion and $8 billion in business as of July and September of 2022, respectively.
The primary care market is equally fast-growing: it currently represents over $290 billion, or about 20-25 percent of health care’s total expenditures. It directly influences over $2 trillion of downstream, health care expenditures, and it is widely predicted that increasing health care costs will drive further capital to primary care in the foreseeable future. And yet, nearly 40 percent or more of all primary care practitioners operate independently, meaning the market is highly fragmented.
As such, and purely from an investment viewpoint, Skylight is poised for long-term growth simply because of the need for unification as well as the continued escalation of North America’s aging population over the next five to 10 years.
Sekar says, “We truly see Skylight as a great solution to the healthcare needs of seniors – and a viable investment opportunity for Canadians. We’re happy to discuss our organization with interested parties, and the best starting point is for them to visit our website.”
For more information on Skylight Health Group please visit www.skylighthealthgroup.com.
This story was created by Content Works, Postmedia’s commercial content division, on behalf of Skylight Global Health.