Top Cybersecurity Challenges Are Still Impacting the Healthcare Industry

February 22, 2021 - By: Baystreet Staff

The healthcare cybersecurity market could be worth up to $26.1 billion by 2027, growing at a CAGR of 19.8%, according to Research and Markets.

“The growth of the healthcare cybersecurity market is majorly attributed to the factors such as the emergence of disruptive digital technologies across healthcare sector, rising demand for advanced cybersecurity solutions & privacy, and increase in complexity & frequency of cyber threats. In addition, the increasing need of cloud-based security solutions among healthcare sector and exponential rise in healthcare data breaches are also expected to support the growth of this market over the coming years,” they noted.

In addition, given the adoption of Electronic Health Records, the healthcare industry must protect this data. Or, the consequences could be dangerous. In addition, increasing adoption of mobile health apps and wearable devices, are further stressing on the need for managing large amount of data to obtain critical information, thereby driving the demand for big data in healthcare sector, says Reportlinker.

Some of the companies fighting the cybersecurity threat seriously include CloudMD Software & Services Inc. (TSXV:DOC) (OTCQB:DOCRF), Teladoc Health Inc. (NYSE:TDOC), Palo Alto Networks Inc. (NYSE:PANW), and FireEye Inc. (NASDAQ:FEYE).

CloudMD Software & Services Inc. (TSXV:DOC)(OTCQB:DOCRF) to Acquire IDYA4

CloudMD Software & Services Inc., a healthcare technology company revolutionizing the delivery of care, is pleased to announce that it has signed a definitive agreement to acquire IDYA4, a leading health technology company focused on data interoperability and cybersecurity based in the United States. Since announcing the binding agreement in December 2020, IDYA4 has closed various new contracts and waiting task orders to be finalized for approximately $1.5Million (USD).

Focused on the health and wellness sector, IDYA4 has built a proprietary technology platform that provides improvements in data access, management, security and integration, as well as actively screening and protecting against today’s ever-changing cyber threats. Built on over 20 years of experience, the IDYA4 team has been at the forefront of the development of information sharing and interoperability solutions across all 50 states for clients including, the U.S. Department of Justice, the U.S. Department of Homeland Security, U.S Health and Human Services, and National Intelligence.

IDYA4’s Real Time intervention platform (RTIP) is the technology backbone of CloudMD’s integration of its healthcare solutions providing one, digitally connected, patient focused platform. Initial stages of the integration are well underway, and the Company will be deploying the unified product offering to partners and enterprise clients within a few months. The combined technology will also be valuable as CloudMD continues to emphasize patient engagement through connected technology, healthcare portals, telehealth applications, and wearable devices.

Various RTIP modules have been operational for last 15 years in the health, human services, homeland security and Public safety to enable information sharing and interoperability. The same RTIP is now also operational in Bergen County, New Jersey to address the opioid overdose crisis.  The RTIP platform is connecting public health, social services, and public safety systems to address the real time needs of the individuals who have overdosed or may be at risk.  This effort is funded by the U.S. Department of Justice and a local Public Safety agency.  

IDYA4 has also launched the First Responders Health Wellness Network to address the Behavioral Health issues including Substance Use Disorder among the First Responders (Law Enforcement, Fire and Emergency Management Services).  The Health and Wellness Network will provide an end-to-end solution to the individuals who need help at any hour of the day. This network is developed on IDYA4’s RTIP allowing the individual to access the platform through their mobile device, desktop or laptop to check their health and wellness on a daily basis via this application developed by Behavioral Health experts. This program already includes CloudMD solutions, Snapclarity, Livecare and iMD and the company is in its initial phase of implementing a  proof of concept that is supported by the Key Public Safety Associations and funded by the U.S. Department of Justice. 

IDYA4’s team is now providing subject matter expertise to address the interoperability issues among the Public Safety and Public Health agencies across the U.S. to coordinate efforts in addressing National issues like COVID-19 and the opioid crisis. This key initiative is supported by the U.S Department of Homeland Security, State and Local Public Safety and Public Health agencies across the nation.  IDYA4 has been engaged to provide advice to the US Federal agencies, State and local government, and National associations engaged in addressing the issues that North America faces around the opioid crisis.  As part of this advisory, IDYA4 will be hosting multiple seminars to discuss how Public/Private leaders can come together to address the opioid crisis that American communities face. 

CloudMD is fully committed to the privacy and security of patient data, and this integrated health data platform is both Health Insurance Portability and Accountability Act (HIPAA) compliant and is enabled for continuous monitoring to ensure the protection and privacy of sensitive data. The platform has been architected to support U.S. and International security standards like the National Institute of Standards and Technology (NIST) Cybersecurity Framework to address internal and external cyber threats.

IDYA4 generated approximately US$ 4.4 million in revenues with earnings before interest, taxes, depreciation and amortization (EBITDA) margins exceeding 31% over the 12 month period ending December 31, 2020. Upon closing, the acquisition of IDYA4 will be immediately accretive to CloudMD with synergies the Company believes will drive further revenue and increased EBITDA margin through cost savings achieved through the scaling of operations and by tapping into CloudMD's health technology solutions that will be added to IDYA4’s current product portfolio. From IDYA4’s currently commercialized products, the Company expects to achieve an annual revenue growth rate greater than 45%, calculated based on expected revenue from currently committed and/or high probability contracts forecasted to generate annual gross revenue greater than US$6M and US$8.5M in calendar years 2021 and 2022, respectively. A total of 30% of the total consideration for the acquisition amounting to US$4.44 million is based on two performance based earnouts, 15% each, that are contingent on meeting these forecasted revenue targets.  

Terms of Agreement

In consideration for the purchase of 100% of the issued and outstanding IDYA4 Securities, CloudMD has agreed to pay aggregate consideration of US$14.8 million payable as follows: (i) US$ 3.7 million in cash, subject to a working capital adjustment; (ii) US$ 6.66 million in common shares of the Company; and (iii) a performance based earnout. See press release dated December 17, 2020 for full terms.

The acquisition is subject to customary closing conditions, including the receipt of TSX Venture Exchange approval.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. CloudMD Software & Services Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of CloudMD Software & Services Inc. Please click here for full disclaimer.

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