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CEOCFO CEOCFO Monthly Analyst |
This is a printer friendly page! Hear in the USA and beyond Service
HearUSA, Inc. Dr. Paul A. Brown Interview Conducted By: CEOCFOinterviews.com HearUSA’s Chairman, Dr. Paul Brown states, “We currently have three priorities in our goal to shift from being market driven to being profit driven. The first is to consolidate the two companies and complete the entire integration process, most of which should be completed in our third quarter with the balance by year-end. This obviously is a rather aggressive target considering the merger just, took place July 11th. At this point, we are fairly comfortable that by October 1st all of their U.S. based centers will be completely converted to the HearUSA, Inc. West Palm Beach, Florida information technology system. We will thus have complete control over all center operations in the United States. At the same time, we will begin converting the Ontario centers and finally the Quebec centers (where the computer system has to be rewritten in French for the Quebec Province). The Second is that we have a $25 million dollar line of credit that is available to us to make acquisitions from Siemens. Our acquisitions are going to be “roll-ins” “not roll ups”. We are looking at making acquisitions within an eight to ten mile radius of an existing center and then have patients serviced out of our centers creating a very high profit margin (approaching 40%). What makes our Siemens’ money so exciting is that our deal with the manufacturer is that there is no principal payment or interest payment provided we buy 90% of our products from them. With the current economy, we have a number of individuals who are looking to be acquired. The third priority is that I have been given the responsibility to increase our contracting with healthcare providers now that we have a nationwide network. In other words, profitability of the company is going to be derived from completing the consolidation phase, starting the acquisition program and additional healthcare provider contracting.” In commenting on what makes HearUSA a unique company, Dr. Brown states, ”There are three things that make our company unique. The first thing is we are the only accredited preferred provider organization in hearing care in the United States. The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) accredits hospitals and nursing homes, etc. The second thing is that we have 170 contracts with healthcare providers and are getting capitation payments for over a million people per month (whether they buy a hearing aid or not). Insurance companies are signing up with us because of that accreditation. The third is the relationship we have with Siemens. They have agreed to put up to $70 million dollars for the expansion of the company. They are not getting any shares of the company, nor are they getting a seat on the board, nor a first right of refusal to acquire the company. Of the first $50 million dollars in debt, $40 million dollars does not have to be paid back as long as we buy 90% of our hearing aids from them. The remaining $30 million or so is earned by our helping the Siemens’ customers improve their business.” Hear USA also offers their HEAR USAŽ Advantage Network, which is a professional Network that forms the industry's first integrated Hearing Benefit Management Company (HBM). It provides a link between hearing health care for consumers and physician networks, insurance companies, health maintenance organizations (HMOs), managed care, and other sponsor groups and organizations. HEAR USAŽ has four divisions - the network, company-owned hearing centers, managed care and e-tail. The network - allows the independent practitioner to focus on what matters the most, their patients. HEAR USAŽ brings to its network members superior buying power, practice management and marketing services. The HEAR USAŽ network offers to its members convenient ordering services (on-line, fax or by simply using 1-800-HEAR-USA), full-service support and third-party contracting (HMOs and Insurance Companies). HearUSA recently acquired NECP (National Ear Care Plan), is the largest independent audiology network in the United States who’s mission is to provide high quality hearing care in a cost-managed environment. Products available through HearUSA include: Digital Hearing Aids, Programmable Hearing Aids, Conventional Hearing Aids and Hearing Enhancement Products such as telecaption devices, pocket talkers, telephone and TV amplifiers, special alarm clocks, doorbells, fire alarms. The Digital Hearing Aids uses tiny, incredibly fast and powerful micro-computers, digital hearing aids actually take apart and restructure voices and sound millions of times per second. They are available in a range of sizes, styles and prices. To find out more about: HearUSA, Inc. You may order the complete text of our interview. To receive a copy of this highly informative interview, left click here: Contact & Ordering disclaimer Interview
Highlights:
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The company today and the changes
that have occurred -
What the merger has meant to the
company -
Merger in regards to budget and
finances -
Insurance coverage -
Hearing loss affecting our youth -
Technology advances -
Priorities -
What makes this company unique -
Growth opportunities for the future -
Closing comments
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