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Rocket Doctor partners with new Managed Care Plan serving ~450,000 California Medicaid members
Future anticipated additional ARR of ~US$1.2 million
Mission to break down barriers to healthcare access
Reducing unnecessary ER visits, reducing wait times, timely specialist referrals
VANCOUVER, British Columbia, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Treatment.com AI Inc. (CSE: TRUE, OTC: TREIF, Frankfurt: 939) (“Treatment”) is pleased to advise that further to its announcement that it has entered into a Definitive Share Purchase Agreement dated February 12, 2025 (the “Definitive Agreement”) to acquire Rocket Doctor Inc. (“Rocket Doctor”), details of which are in Treatment’s Press Release dated 12th February 2025 https://www.treatment.com/press/, Rocket Doctor has partnered with a California managed care plan (the “Plan”) serving approximately 450,000 Medicaid members, to provide tele-urgent care, specialty services, and primary care.
Through this collaboration, Rocket Doctor’s innovative virtual care platform will support the plan’s extensive provider network of 14,000 clinicians and multiple hospitals, ensuring that patients can access high-quality medical care from the comfort of their homes.
Under this fee-for-service agreement, Rocket Doctor’s physicians are now becoming fully credentialed, allowing them to accept patients from the plan and bill directly for reimbursement at negotiated rates. Services have already launched, with the first patients starting to receive care. As the partnership matures, and assuming only 10% utilization per year, Rocket Doctor expects upwards of 45,000 visits per year generating approximately US$1.2M per year of added annual recurring revenue (ARR). The associated estimated total billable value of services is US$4.41m (based on US$98 per visit). The anticipated gross margin in Year 1 is US$18/visit. The term of the Agreement is on a recurring 12 months basis commencing January 1st 2025, with a 120 day mutual termination clause.
“This partnership represents a significant step forward in our mission to break down barriers to healthcare access for patients at greatest need across California,” said Dr. Bill Cherniak, CEO and Founder of Rocket Doctor. “By bringing high-quality care to Medicaid beneficiaries through managed care plan partnerships in California, we’re ensuring that patients can connect with physicians when and where they need them most, embedded deeply within the framework of the healthcare system.”
The Plan sees the collaboration as a critical expansion of care options for its members.
Rocket Doctor’s virtual care model reduces unnecessary emergency department (ED) visits, reduces wait times, and ensures timely specialist referrals. With services now live, eligible plan members can schedule virtual visits with board certified physicians across a range of medical specialties.
Dr. Essam Hamza, CEO of Treatment.com AI, adds: “We would like to congratulate Bill and his team for all the hard work they have put into getting this significant deal across the finish line. I know that this was years in the making and it’s great to see that they can now start recognizing the revenue from this expansion into California. We will be watching closely as they continue to deliver on further expansion plans within the state as well as other states and provinces.”
Rocket Doctor is a technology-driven digital health platform and marketplace that is breaking down obstacles limiting access to high quality, comprehensive and cost-effective healthcare. Its proprietary software equips doctors with ‘plug and play’ tools to run successful independent practices in virtual and hybridized in-person/virtual models of care, enabling them to provide tailored care to patients in remote communities, particularly those in rural and Northern communities across Canada and on Medicaid in the United States.
About Treatment.com AI Inc.
Treatment.com AI is a company utilizing AI (artificial intelligence) and best clinical practices to positively improve the healthcare sector and impact current inefficiencies and challenges. With the input of hundreds of healthcare professionals globally, Treatment.com AI has built a comprehensive, personalized healthcare AI engine — the Global Library of Medicine (GLM). With more than 10,000 expert medical reviews, the GLM delivers tested clinical information and support to all healthcare professionals as well as providing recommended tests (physical and lab), imaging and billing codes. The GLM helps healthcare professionals (doctors, nurses or pharmacists) reduce their administrative burden; creates more time for needed face-to-face patient appointments; and enables greater consistency in quality of patient support. Treatment.com AI’s GLM platform, through supporting healthcare professionals, allows for the inclusion of disenfranchised communities. To learn more about Treatment’s products and services: www.treatment.com or email: info@treatment.com
About Rocket Doctor Inc.
Rocket Doctor is a technology-driven digital health platform and marketplace that is breaking down obstacles that limit access to quality, comprehensive and cost-effective healthcare. Our proprietary software equips doctors with the tools to run successful practices in virtual and hybridized in-person/virtual models of care, enabling them to provide tailored care to patients in remote communities, particularly those in rural and Northern communities across Canada and on Medicaid in the United States. Leveraging large language models, AI/ML and wireless medical devices, Rocket Doctor is bridging the healthcare divide, connecting patients to equitable and accessible virtual healthcare services regardless of age, location, or financial status. This includes patients with potentially stigmatizing conditions such as substance use, mental health and otherwise.
This news release contains forward-looking statements that are based on Treatment.com AI’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to the implementation of its shareholder communications initiative and the timing thereof. These forward-looking statements or information may relate to the consummation of Rocket Doctor’s California Medicaid transaction and the expected benefits to Rocket Doctor of such transaction and other factors or information. Although Treatment.com believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements, and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and Treatment.com undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances unless otherwise required to do so by law.
Future Oriented Financial Information
This news release also contains future-oriented financial information and financial outlook (collectively, “FOFI”) about Rocket Doctor’s forecasted revenues and gross margins from the partnership with a California managed care plan which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made by management as of the date of this news release and was provided for the purpose of providing readers with an understanding of the importance of such transactions to Rocket Doctor’s business, and are not an estimate of profitability or any other measure of financial performance. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company disclaims any intention or obligation to update or revise any FOFI contained in this News Release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
