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TSX-V:JNHOTCQB:JNHMF
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Jack Nathan Health expanding operations across Canada and Mexico

Snapshot

The company runs state-of-the-art, turn-key walk-clinics and family practices in Walmart locations across Canada as well as Mexico

Walmart Inc - Jack Nathan Health expanding operations across Canada and Mexico

Quick facts: Jack Nathan Health

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TSX-V:JNH

Price: 0.35 CAD

Market Cap: $28.76 m
  • Operates one of Canada’s largest health care networks
  • Delivers walk-clinics and family practices in Walmart locations in Canada and Mexico
  • Actively buying existing medical and paramedical clinics within its current footprint

What Jack Nathan Medical does:

Jack Nathan Medical Corp (CVE:JNH) (OTCMKTS:JNHMF), operating as Jack Nathan Health, runs one of Canada’s largest health care networks. 

The company is improving access for millions of patients by co-locating physician and ancillary medical services conveniently inside Walmart Inc (NYSE:WMT) stores. 

Jack Nathan Health was established in 2006 and now delivers state-of-the-art, turn-key walk-clinics and family practices in 76 Walmart locations across Canada including British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec, as well as 52 corporate-owned and operated locations in Mexico, in addition to servicing certain Walmart Distribution Centres in Mexico.

The company designs, builds, and sets-up its barrier-free medical and dental clinics via strategic partnerships with some of the brightest physicians across Canada. In addition to in-clinic physicians, patients can get help through the company’s digital telemedicine.

How is it doing: 

Jack Nathan Health (TSX-V:JNH, OTCQB:JNHMF) kicked off 2021 with two acquisitions to strengthen its telemedicine operations and to expand the range of services and treatment options available to both practitioners and patients at its clinics, as the company seeks to become a full-service provider of medical, health, and wellbeing services and products.

The company has acquired Writi, a cloud-based medication-management software platform, available on mobile devices and web platforms. Writi’s Virtual Healthcare platform supports the secure digital communication, record maintenance, and workflow of resident-related orders and documentation.

Writi is helping to contain the spread of coronavirus (COVID-19) with remote virtual check-ups from physicians and nurse practitioners, treating patients and prescribing using virtual billing, prescription fulfillment, and integration with various emergency medical retrieval services (EMRs). In addition, prescribers and healthcare workers can check in on patients in isolation and assess and treat patients remotely. 

The Writi service platform is scaling and is used in long-term care (LTC) homes, serving 30 locations and more than 3,200 resident beds in Ontario. Writi has a stable and growing recurring revenue base, receiving a monthly recurring SaaS fee per resident beds, in LTC homes.

Jack Nathan Health also has acquired two profitable Redeem MediSpas locations, which are actually located in the company’s medical walk-in clinics at Walmart in Maple and Brampton, Ontario. The so-called in-house acquisition is immediately accretive and highly complementary to the company’s already well-established network of health clinics.

Redeem MediSpa offers a complete range of both surgical and non-surgical treatments for facial and body rejuvenation and aesthetics, including treatments for migraines, laser therapy, anti-aging, face, and body skin tightening, PRP therapies, joint pain treatments, and hair loss - to name a few.

In Mexico, the company is rapidly expanding its footprint via subsidiary JNH Medico Mexico, a provider of primary care medical clinics located in Walmart Supercentres and other Walmart Mexico formats under the Jack Nathan Health brand. Currently, 153 clinics are operating and the company plans to open a total of 203. Rapid expansion in Walmart Mexico is fueled by modular, cost-effective construction which only takes days and requires no capital expenditure from Jack Nathan Health. 

Meanwhile, the company recently launched a new COVID-19 testing program by setting up centers in 28 Walmart parking lots in Mexico. Jack Nathan Health has identified a total of 64 potential locations, with 20 of them authorized by the Mexican government thus far. All testing sites will offer rapid antigen COVID-19 tests at a cost estimated to be 70% less than common pricing. 

To carry out the company’s new business strategy for 2021 and beyond, Jack Nathan Health hired Dr Glenn Copeland as its chief medical officer. He will help the company expand corporate clinic operations in several locations across Canada in 2021.

As the company actively buys existing medical and paramedical clinics within its current footprint, led by Dr Copeland, the company will be freed to integrate a technology backbone that improves efficiencies, level of care, patient metrics, and margins. In fact, the company is working on a system to integrate both clinic and patient services to drive patient engagement, clinic operations, and analytics.  

On the financial front, its revenue rose by 26% to C$1.3 million in its fiscal first-quarter of 2022 (ended April 30, 2021) thanks to new clinics and expanded operations in Canada and Mexico. Also, the company ended the quarter with a cash balance of $6.3 million.

In addition, the healthcare firm acquired or closed the acquisitions of seven new clinics, including two MediSpas and four operational medical clinics in Ontario Walmart stores. The firm also inked a deal for a flagship 8,200 square foot clinic in Ontario – its largest facility in the Jack Nathan Health Walmart network to date.

In late August 2021, the company acquired its second medical clinic in British Columbia, marking its seventh corporate-owned and operating medical clinic within the Walmart Canadian footprint.

Inflection points: 

  • Become a leading integrated primary health care provider in Canada and globally
  • Grow through expansion in Walmart, new stand-alone facilities, telemedicine, and acquisitions
  • Expand digital footprint via e-commerce platform and retail product offerings
  • Expand corporate clinic operations across Canada in 2021
  • Open a total of 203 clinics in Mexico in 2021

What the boss says:

“This project represents another milestone in our partnership with Walmart Mexico, as we continue to integrate Jack Nathan Health’s medical offerings within Walmart locations,” said Co-founder and interim CEO Mike Marchelletta after expanding its footprint in Mexico.

“We intend to scale quickly and open facilities as authorizations are granted, and business cases are evaluated based on the success of the various roll-outs. There is no doubt there is a need to expand COVID-19 testing throughout Mexico, and we believe we can address it, while adding value-added services to patients and for doctors, and new growth opportunities for JNH."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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