Multidisciplinary digital health organization Babylon said it plans to sell its independent physician association business in California to focus on digital-first contracts.
Meritage Medical Network is a group of approximately 1,800 physicians who provide in-person care in six counties in Northern and Central California. Babylon, for its part, will leave the network to allow the company to focus on its core business model, digital-first, value-based care contracts.
He added that the proceeds from the sale would be sufficient to support the company in a profitable manner. During the Babylonian period It released its second-quarter earnings in August, assessing how long it will take to become profitable based on both cash flow and adjusted EBITDA, but the company is targeting no later than 2025.
The biggest trend
In addition to the sale of Meritage Medical Networks, Babylon said the previously announced reverse split will take place during the fourth quarter of this year.
The company said last month He received notice from the New York Stock Exchange that he was not complying with a rule requiring companies to maintain an average closing share price of at least $1 for 30 consecutive days. The dividend is intended to increase the share price to prevent Babylon from being liquidated.
The company, which started in the UK, said it plans to move to US domestic reporting standards with the Securities and Exchange Commission by 2023. It recently announced deals with NHS Trusts in the domestic market, and its US value-based care members grew by 220% year-on-year in its Q2 results.
But so is Babylon He recently hired Andrew Hin as group vice president of go-to-market for Asia, Europe, the Middle East and Africa. The company said it will manage Babylon’s contracts and partnerships and work to grow its offerings and services in those regions.
On the record
“Streamlining our IPA business’ sales and reporting and management processes will result in a more focused business, simpler structure and stronger balance sheet,” Babylon founder and CEO Ali Parsa said in a statement.
