HOUSTON, Feb. 5, 2025
/PRNewswire/ -- Nutex Health Inc. ("Nutex Health" or the
"Company") (NASDAQ: NUTX), a physician-led, integrated healthcare
delivery system comprised of 24 state-of-the-art micro-hospitals in
11 states and primary care-centric, risk-bearing physician
networks, today provided an update regarding its strategic
participation in arbitration known as the Independent Dispute
Resolution ("IDR") process under the No Surprises Act ("NSA").
As previously disclosed in our September
30, 2024 Form 10-Q, on July 1,
2024 the Company contracted with a third-party vendor to
assist in the recovery of certain out of network claims under the
arbitration process. Since implementing its arbitration strategy,
the Company has reached its goal of submitting between 60-70% of
its billable visits to arbitration each month, achieving an
arbitration success rate in excess of 80% during the fourth quarter
of 2024.
These increasingly favorable outcomes are expected to allow the
Company to recover substantial amounts previously underpaid by
insurers. Due to significant administrative time built into the
federal arbitration process and delays in collections, the Company
is now beginning to realize the full cash impact of its enhanced
arbitration process that was commenced in July 2024.
Additionally, there is a significant cost to enter the
arbitration process. The arbitration process includes expenses
associated with third party providers, including independent
dispute resolution entities, which typically collect fees at the
beginning of the process, before the claim award amounts are
decided by arbitrators.
"Our proactive approach to arbitration under the No Surprises
Act has yielded positive results thus far, reinforcing our
commitment to fair reimbursement. By effectively leveraging our
industry leading expertise and knowledge, we have been able to
secure rightful payments for our facilities and providers while
continuing to deliver high-quality, accessible care to our
communities," stated Tom Vo, M.D.,
Chairman and Chief Executive Officer of Nutex Health. "The momentum
we have built in 2024 places Nutex Health in a strong position for
continued success in the coming year."
The Company's arbitration success aligns with its broader
strategic initiatives, which include optimizing hospital
operations, expanding physician networks, and driving efficiencies
across its integrated healthcare delivery model.
The Company cannot predict whether arbitration successes and
claim recovery will continue at current levels. Any significant
revisions to the federal arbitration process may result in a
substantial decrease in claim amounts recovered in the future. In
addition, Nutex Health is unable to predict future regulatory
changes, evolving arbitration practices, and payer responses to
ongoing enforcement of the NSA, all of which may have an adverse
impact on the Company's ability to recover on its claims.
About Nutex Health Inc.
Headquartered in Houston,
Texas, and founded in 2011, Nutex Health Inc. (NASDAQ: NUTX)
is a healthcare management and operations company with two primary
divisions:
- Hospital Division: Owns, develops and operates
innovative healthcare models, including micro-hospitals, specialty
hospitals, and hospital outpatient departments (HOPDs). This
division currently owns and operates 24 facilities across 11
states.
- Population Health Management Division: Owns and operates
provider networks such as Independent Physician Associations
(IPAs). Through its Management Services Organization (MSO), Nutex
Health provides management, administrative, and other support
services to its affiliated hospitals and physician groups.
Forward-Looking Statements
Certain statements and information included in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Act of 1995. When used in this
press release, the words or phrases "will", "will likely result,"
"expected to," "will continue," "anticipated," "estimate,"
"projected," "intend," "goal," or similar expressions are intended
to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
are subject to certain risks, known and unknown, and uncertainties,
many of which are beyond the control of the Company. Such
uncertainties and risks include, but are not limited to, our
ability to successfully execute our growth strategy, changes in
laws or regulations, including the interim and final rules
implemented under the No Surprises Act , economic conditions,
dependence on management, dilution to stockholders, lack of
capital, the effects of rapid growth upon the Company and the
ability of management to effectively respond to the growth and
demand for products and services of the Company, newly developing
technologies, the Company's ability to compete, conflicts of
interest in related party transactions, regulatory matters,
protection of technology, lack of industry standards, the effects
of competition and the ability of the Company to obtain future
financing. An extensive list of factors that can affect future
results are discussed in the Annual Report on Form 10-K for the
year ended December 31, 2023 and in
the Quarterly Reports on Form 10-Q for the periods ended
March 31, 2024, June 30, 2024 and September 30, 2024 under the heading "Risk
Factors" in Part I, Item IA thereof, and other documents filed from
time to time with the Securities and Exchange Commission. Such
factors could materially adversely affect the Company's financial
performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements
expressed within this press release.
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SOURCE Nutex Health, Inc.
