(Note: This is NOT an IPO. This is a NASDAQ uplisting from the OTCQX Market. The timing of this uplift offering’s pricing has been carried over for a few weeks in October.)
The medical note documentation burden in the United States is significant and is a major contributor to physician burnout. According to a 2019 study in the Annals of Internal Medicine, physician burnout costs the U.S. healthcare industry $4.6 billion per year due to lost productivity and higher turnover, with the cost of replacing a single physician estimated to be between $100,000 and $1 million. It is also adversely impacting productivity because the time spent by doctors on documentation could be spent on seeing more patients. Our mission is to enable doctors to practice medicine the way they want to by assuming the burden of documentation from them.
Healthcare practitioners in the United States often look to outsourced solutions to handle their documentation. There are various solutions that are marketed to clinicians, which include licensed physicians, nurse practitioners and physicians’ assistants, but not registered nurses. These range in scope from self-serve dictation tools to comprehensive technology-enabled medical note documentation solutions. We are a provider of a comprehensive technology-enabled medical note documentation solution that also provides supplemental clinical support to the U.S. healthcare industry.
Augmedix was incorporated in 2013 and launched its commercial real-time, remote documentation services in 2014. We provide software that is compatible with off-the-shelf mobile client devices (smartphones or Google Glass), which enables clinicians to communicate with our service platform, overseen by remotely located medical documentation specialists (each an “MDS”, and collectively “MDSs”). Our MDSs observe the clinician-patient interaction, through an audio/video stream, and extract the relevant elements of that interaction. Those elements are then used by our proprietary Notebuilder tool to automatically create sentences in the appropriate section of the medical note. Once completed, the medical notes are uploaded into the patient’s chart contained within the electronic health record (“EHR”) system. The EHR system is third-party software licensed by the healthcare clinic or system to manage patient charts.
Patient care in the United States is provided in ambulatory or clinical environments and hospitals. We focus most of our efforts in the ambulatory/clinical segment of the patient care market. Roughly 85% of the physicians who subscribe to our service are employed directly by, or are affiliated with, a healthcare enterprise. The remaining 15% consists of small practices and individual practitioners.
We have generated in excess of five million medical notes since we began offering our service and are currently delivering over 35,000 notes to our customers each week. We estimate that our solution saves doctors two to three hours each day which is time that they can redeploy to see more patients and/or improve their work-life balance. We believe the benefits to healthcare enterprises are increased productivity and higher clinician and patient satisfaction. To date, we provide service to four of the top 10 and six of the top 20 U.S. healthcare enterprises.
The current COVID-19 pandemic and resulting safety protocols have prompted a significant shift towards delivering health services remotely via telemedicine. Our technology platform was designed to enable clinicians to engage our services even when they are conducting virtual patient visits. As such, we are able to continue to provide uninterrupted service to our customers, even when they are unable to see patients in their offices. We believe telemedicine will remain an important part of health services delivery even after the end of the COVID-19 pandemic.
|Industry:||SERVICES - PREPACKAGED SOFTWARE|
|Revenues||$18.75 mil (last 12 months)|
|Net Income||$-17.45 mil (last 12 months)|
|Price range||$6.00 - $6.00|
|Est. $ Volume||$40.0 mil|
|Manager / Joint Managers||William Blair/ B. Riley Securities/ Benchmark/ Lake Street|
|Expected To Trade:||10/14/2021|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|