The Canadian healthcare landscape is undergoing rapid transformation, driven by the increasing demand for accessible, high-quality care and the integration of innovative digital health solutions. In a significant move highlighting this evolution, WELL Health Technologies Corp. (WELL), a company at the forefront of modernizing healthcare, announced the acquisition of Myhealth Partners Inc. (MyHealth Partners), a leading provider of specialty care, telehealth services, and accredited diagnostic health services across Ontario. This strategic acquisition not only solidifies WELL’s position as the largest owner-operator of outpatient medical clinics in Canada but also significantly enhances its telehealth capabilities, making it a dominant force in the Canadian digital healthcare arena.
MyHealth Partners: A Foundation of Excellence in Canadian Healthcare
Founded in 2013, MyHealth Partners has rapidly grown into a healthcare powerhouse, boasting 48 locations across Ontario and a network of over 760 physicians and healthcare professionals. MyHealth Partners has established itself as a comprehensive healthcare provider, offering a wide range of services including primary care, specialty care, and crucial diagnostic services. Their commitment to patient care is evident in the impressive 500,000 patient visits recorded in the twelve months leading up to March 31, 2021, encompassing in-person consultations, telehealth appointments, and diagnostic procedures.
MyHealth Partners distinguishes itself through its diverse service offerings, which include:
- Specialty Care: Covering a broad spectrum of medical specialties such as cardiology, rheumatology, vascular surgery, and radiology, ensuring patients have access to expert care across various health needs.
- Telehealth Services: A pioneer in remote healthcare delivery, MyHealth Partners conducts approximately 75% of its medical consultations via telehealth. This forward-thinking approach ensures accessibility and convenience for patients, particularly in specialized areas like telecardiology and teleradiology.
- Diagnostic Services: With 48 accredited facilities, MyHealth Partners provides essential diagnostic services related to cardiology, women’s health, bone and muscle health, and cancer diagnostics, playing a critical role in early detection and effective treatment.
The remarkable growth trajectory of MyHealth Partners is a testament to its operational excellence and strategic vision. Over the past five years, the company has achieved a 40% compound annual growth rate (CAGR) in both revenue and EBITDA, fueled by a robust 15% organic growth rate and a successful acquisition strategy that has incorporated 25 clinics in the last eight years. This impressive expansion reflects MyHealth Partners’ ability to identify and integrate valuable healthcare assets while maintaining a strong focus on organic growth.
Strategic Acquisition by WELL Health: Expanding Reach and Enhancing Telehealth Leadership
The acquisition of MyHealth Partners by WELL Health Technologies Corp. is a landmark transaction that brings together two complementary forces in the Canadian healthcare sector. For WELL, this acquisition is a transformative step towards becoming the preeminent integrated healthcare provider in Canada.
Hamed Shahbazi, Chairman and CEO of WELL, emphasized the strategic importance of this acquisition, stating it “cements WELL’s position as a foundational leader in the Canadian healthcare marketplace.” The integration of MyHealth Partners significantly expands WELL’s network, creating the largest non-governmental owner-operator of outpatient medical clinics in Canada, with a combined total of 74 clinics.
The acquisition offers several key benefits to WELL and the broader Canadian healthcare ecosystem:
- Expanded Network and Service Breadth: The combined entity boasts an extensive network of healthcare professionals, including approximately 160 physicians and over 600 other healthcare providers from MyHealth Partners, adding to WELL’s already substantial platform. This expanded network enhances patient access to a wider range of primary and specialty care services.
- Telehealth Dominance: By integrating MyHealth Partners’ advanced telehealth infrastructure, WELL solidifies its position as the leading multi-disciplinary telehealth service provider in Canada. MyHealth Partners’ expertise in telecardiology, teleradiology, and expanding telehealth services into diabetes, kidney, and pain care, complements WELL’s existing telehealth businesses, creating a comprehensive and robust virtual care platform.
- Technological Synergies: MyHealth Partners’ commitment to digital health aligns seamlessly with WELL’s technology-driven approach. MyHealth Partners utilizes digital tools for referrals, patient portals, mobile booking apps, and proprietary business intelligence systems. Notably, MyHealth Partners already uses WELL’s OSCAR Pro EMR system for primary care, creating immediate opportunities for digital cross-collaboration and innovation.
- Financial Strength and Accretion: MyHealth Partners has demonstrated strong financial resilience and is projected to generate approximately C$100 million in proforma revenue in 2021 with EBITDA margins of around 20%. This acquisition is expected to be significantly accretive for WELL, enhancing EBITDA per share by 20% and revenue per share by 28%, reinforcing WELL’s financial strength and growth potential.
- Continued Growth and M&A Strategy: MyHealth Partners will operate as a subsidiary of WELL, led by its current CEO, Suresh Madan. MyHealth Partners is expected to continue its successful M&A strategy, further expanding its network and service offerings under the WELL umbrella, creating ongoing growth opportunities.
Telehealth-First Approach and Digital Innovation
A key highlight of MyHealth Partners is its “telehealth-first” approach. With approximately 75% of consultations conducted virtually, MyHealth Partners has effectively integrated telehealth into its operational model, demonstrating a commitment to accessible and convenient patient care. This approach not only improves patient experience but also optimizes resource allocation and expands service reach, particularly for specialty care.
MyHealth Partners’ tech-enabled operations are another critical asset. The company has embraced digital tools to enhance patient engagement and streamline workflows, including:
- Referral Management Software: Digitizing and optimizing the referral process, ensuring timely access to specialist care.
- Patient Portals: Providing patients with secure access to their radiology records and other health information, empowering them to actively participate in their care.
- Mobile Booking App: Offering convenient appointment scheduling and management for patients on the go.
- Proprietary Business Intelligence System: Leveraging data analytics to drive informed decision-making and optimize operational efficiency.
These technological capabilities, combined with MyHealth Partners’ existing use of WELL’s OSCAR Pro EMR, create a strong foundation for future digital innovation and integration within the WELL ecosystem.
Transaction Details and Future Outlook
The acquisition of MyHealth Partners involves a total transaction value of C$206 million, with a potential earn-out of up to C$60 million based on performance. The deal is financed through a combination of WELL shares, vendor takeback financing, and new senior credit facilities. This financial structure reflects the strong asset value of MyHealth Partners and the confidence in its future performance.
The closing of the transaction is subject to customary regulatory approvals and is expected in Q3 2021. Upon completion, the combined entity of WELL and MyHealth Partners is poised to reshape the Canadian healthcare landscape. By integrating a leading specialty care and diagnostic network with a cutting-edge telehealth platform, WELL is creating a patient-centric, digitally enabled healthcare system that is well-equipped to meet the evolving needs of Canadians.
The acquisition of MyHealth Partners represents a significant step forward in the modernization of Canadian healthcare. It underscores the growing importance of telehealth and digital solutions in delivering accessible, efficient, and high-quality care. As MyHealth Partners integrates with WELL, the Canadian healthcare sector can anticipate continued innovation and enhanced patient experiences, driven by this powerful combination of expertise and vision.
