VisualMED Clinical Solutions Corp. (The "Company") (PINKSHEETS: VMCS) (FRANKFURT: VA6) announces that its Transitional Care solution has now been completed and is available for immediate deployment for both independent institutions as well as regional health agencies.
Transitional Care is a post release methodology aimed at reducing hospital readmissions, a national scourge that costs Americans more than $45 billion a year in additional medical bills. For the Federal government readmissions has become a key issue as 19% of all hospital patients are readmitted in less than 30 days after being discharged. The government considers readmissions a prime symptom of an overly expensive and uncoordinated health system.
The numbers surrounding this problem are serious. Nearly 6 million patients are readmitted within 30 days of release each year, costing Americans some $47.5 billion in additional hospital bills. This national average has remained steady at around 19 percent for several years.
The same factors apply to Medicare patients. In an effort to reduce associated cost, next year more than 2200 hospitals will be financially penalized by Medicare for unwanted readmissions.
Hospitals face stiff penalties and are trying to remedy the problem, but are failing. A senior physician, Dr. Kenneth Sands, senior vice president for quality at Beth Israel, was recently quoted saying that "A lot of places have put in a lot of work and not seen improvement. It is not completely understood what goes into an institution having a high readmission rate and what goes into improving it." Hospitals need guidance, appropriate methodologies and ready solutions that VisualMED is now offering.
The reduction of readmissions by 50%, would provide recurring annual savings of $25 billion or half a trillion dollars over 20 years. VisualMED has the knowledge and proven technology to effectively reduce readmissions.
The Company was a pioneer in finding solutions, having produced a full manual on readmissions in 2010. Over the next five years we are looking at bringing Transitional Care to health agencies covering some 100 institutions. We will have competitive pricing, charging a one-time fee per unit plus annual support. Readmissions are so costly that most institutions will likely recoup our cost in six months time, an attractive ROI.
We bring in the tools, hire and train all requisite new personnel. It is a fresh start with social workers and nurses, and it is a turnkey solution requiring no retooling of existing practice which is a classic source of bleeding. As a consequence, the company will be in a position to protect healthy operating margins -- this is one of the key factors behind our determination to prioritize transitional care over acute care automation.
VisualMED is now in a position to further the aims of the Obama administration's public policy while generating solid revenue and returning the company to its historic valuation.
About VisualMED VisualMED markets advanced Clinical Information Systems (CIS) and Computerized Physician Order Entry that meet the new regulatory environment ushered in by the American Recovery and Reinvestment Act of 2009 and the Health Reform Act of 2010. VisualMED offers a powerful technology platform both scalable and interoperable, developed at a cost of some $40 million and tested over many years in tertiary care and ambulatory environments. It's also a main driver of mobile solutions to provide better home care alternatives for patients and seniors. VisualMED solutions help health care agencies reduce mortality and morbidity due to medical errors, increase provider efficiency, and bring down operating costs. The key clinical components are a core solution in the new agenda to promote greater patient safety and reduce risks due to medication errors. The Company's Suites of Medical Solutions operate on state of the art proprietary software platforms with advanced analytical capabilities provided by Visual Healthcare Corp. (PINKSHEETS: VSHC).
Detailed information on our company and its products is available on our web site at www.visualmedsolutions.com
FORWARD-LOOKING STATEMENTS Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.