Company Profile: Millennium HealthCare, Inc. (OTCQB: MHCC)
Several years ago, Dominick Sartorio’s mother went to her doctor because she felt pain in her abdomen. After performing a routine examination and finding nothing, the doctor dismissed her pain as a common stomach ache and sent her home. She left the doctor’s office, and died later that day of a heart attack.
Deeply scarred by the loss of his mother from a misdiagnosis, Dominick made it his mission to help bring more advanced testing and preventative diagnostics using innovative technology to better help physicians detect disease early so something like this would never happen again. As a result, he assembled a consortium of cardiologists, oncologists, surgeons, medical device manufacturers, reimbursement specialists and legal experts in a concerted effort to provide physicians with lifesaving, non-invasive diagnostic tests that could cost patients little to no out of pocket expense, while being reimbursable to physicians by both private insurance and Medicare.
Doctors are eager to sign up for Millennium’s exclusive diagnostics because they can help save lives at little to no cost to their patients and be a profitable new revenue stream for their practices.
Soon afterward, Mr. Sartorio became the CEO of Millennium HealthCare (Ticker: MHCC). One of the first items he and his team analyzed was the regulatory and reimbursement changes occurring within healthcare and how these changes may affect primary care physicians, cardiologists and their practices. MHCC’s management researched, studied and analyzed the operations of physician practices, healthcare clinics and hospitals to better understand and become more proficient in their organizational infrastructure and cash flows. With this knowledge, they became an experienced, highly qualified team, and began specializing in credentialing, medical billing and coding, with emphasis on ICD-9conversion to ICD-10, which requires the use of a very costly and complex system of over 100,000 codes.
Millennium learned that primary care physicians can commonly be the lowest paid physicians in the industry and their practices can often experience potentially weak cash flow. The irony of this is that the primary care physician has a very significant impact on the healthcare industry with approximately 400,000 physicians/practices.
After identifying and working closely with primary care practices, clinics and hospitals, MHCC’s management determined that affordable, accurate, non-invasive diagnostic tests for the early detection of heart disease and cancer were likely key components in the successful reduction of healthcare costs. These very specifically profiled diagnostics immediately became the foundation of Millennium’s business model.
The Company, led by Mr. Sartorio, began to focus its efforts on identifying diagnostic devices that had the potential to greatly reduce long-term medical costs. These diagnostics had to fit Millennium’s highly specific criteria, including being FDA cleared and approved, having established billing codes for reimbursement and being primarily used for , the early detection of common diseases, such as cardiovascular disease or cancer. Additionally, to protect, enhance and benefit Millennium and its shareholders, these devices and diagnostics would have to be exclusive to Millennium.
The first products Millennium identified and pursued were OralCDx™, for the early detection of oral cancer, and DermCDx™ for the early detection of skin cancer. Oral cancer is one of the fastest growing diseases because it is one of the most untested and undetected diseases. Skin cancers, like melanoma, can quickly become life threatening if not detected or treated early.
Oral and skin cancers are currently detected through a chunk biopsy; a procedure that requires using a scalpel for deep cutting and stitches to close the wound. Chunk biopsies are typically accompanied by pain, patient recovery time and sometimes infection, particularly if the wound is in the mouth, which has a high bacterial count.
Much like the Pap smear that revolutionized the diagnosis of cervical cancer, OralCDx™ and DermCDx™ use a non-invasive brush to contact and collect samples of any visible dysplasia (red or white spots in the mouth, tongue and throat or suspicious spots that may appear on the skin). The OralCDx brush obtains a complete transepithelial biopsy specimen collecting cells from all three layers of the epithelium: the superficial, intermediate and the basal layer. Specimen samples from the brush are placed on a glass slide for analysis for which lab results have shown a 98% accuracy in the detection of cancer and pre-cancerous cells. Millennium has successfully secured the exclusive rights to these revolutionary diagnostic tests.
Medicare is also currently trying to control unnecessary referrals from primary care physicians to expensive cardiologists and other specialists for very expensive tests that may yield negative results. Millennium believes they have identified a potential solution to this problem through their second product offering.
VasoScan™, a simple but highly innovative cardiovascular test developed at MIT. In three minutes, this technology, using an LED fingertip sensor with sophisticated algorithmic software, can accurately assess and diagnose patients for cardiovascular disease whether they are symptomatic or not. According to Mr. Sartorio, “Being able to detect heart disease for early intervention and treatment could potentially help the 600,000 people who perish annually from cardiovascular disease in the United States.”
VasoScan™ appeals to Medicare and reimbursement agents because it can provide evidence to support a patient’s referral to a specialist, where high diagnostic costs are typically incurred. Prior to VasoScan™, these costly referrals were based on EKG’s that often provided inadequate or incomplete data; family history; weight; blood pressure; cholesterol data; diet; and smoking habits. These metrics are essential, but insufficient for optimal patient assessment and diagnosis.
VasoScan™ is more accurately predictive and a more reliable assessment of cardiovascular health because it measures the elasticity and stiffness of a patient’s blood vessels as well as the biological age of the arteries and changes in blood pressure, blood flow and velocity.
OralCDx™, DermCDx™ and VasoScan™ are expected to be powerful diagnostic tools to aid the healthcare industry in accurate preventative diagnostic testing, but are only the beginning. Millennium continues to identify new and innovative devices and preventative tests and diagnostics that fit the same model for breast cancer and other common diseases.
Subsequent to Millennium securing the exclusive sales and marketing rights to these “state-of-the-art” diagnostics, they started to introduce them to physicians, practices and large physician groups such as ACO’s (Accountable Care Organizations), IPA’s (Independent Practice Associations) and MSO’s (Managed Service Organizations). The overwhelming clinical need combined with little or no cost to patients and the additional potential revenue stream sufficiently peaked physicians’ interest to cause them to engage and ultimately contract with Millennium in order to implement and provide these devices and tests within their practices.
Initial distribution and market testing of these products are resulting in overwhelming interest and early adoption. Millennium began offering its diagnostics only 6 months ago in December of 2013 and since then have contracted with 1,300 physician office locations. They potentially have another 1,000 locations currently evaluating formal contracts, and several thousand more expressing high levels of interest.
There are over 400,000 primary care physicians/practices in the U. S. today with an average of between 2 and 5 physicians per practice. Each physician can see an average of up to 40 patients per day.
The average physician, nurse or medical assistant can perform approximately 10 to 20 tests per day, with some multi-physician offices performing up to 100 tests per day. A physician can be reimbursed an estimated $150 to $240 per test.
Mr. Sartorio says, “We want to strategically manage our growth and expect to reach up to 5,000 contracted locations within 3 years.” Mr. Sartorio added, “We can recover most, if not all of our unit cost in approximately 30 days of its implementation and self-fund growth from sales after that. With anticipated growth of this magnitude, we need to focus on implementation and control of our first few thousand practices before we look to offer our products to the entire marketplace.”
Millennium is currently evaluating various options to finance additional equipment/capital expenditures and further product rollouts.
With the current trend of consolidation of practices and practices merging into ACO’s IPA’s and MSO’s, it is anticipated that the process for Millennium to reach large numbers of physicians and their practices and patients will be streamlined and more efficient than ever before. Instead of speaking with a single physician office one at a time, Millennium can now deal with one or several ACO’s, IPA’s or MSO’s that represents dozens or hundreds of practices and negotiate a large number of locations in a relatively very short time.
Dominick Sartorio’s dream and passion to provide physicians with potentially life-saving, early detection diagnostics and services is now a reality with positive patient outcomes already being realized. According to Mr. Sartorio, “Early results from participating practices with VasoScan™ for non-symptomatic patients have already resulted in successfully identifying patients with cardiovascular issues”.
Millennium’s state-of-the-art diagnostics have a very real potential to save lives and contribute enormous savings for the healthcare system. Their diagnostics are currently reimbursable by Medicare and insurance carriers making them available to patients for little or no cost and are extremely attractive to physicians as they can substantially increase practice income without any capital investment.
For more information about Millennium HealthCare, Inc., please go to their website: www.MillenniumHCS.net
The company paid consideration to SNN or its affiliates for this article.
© 2017 Stock News Now
Supported by Superior Web Solutions