iMedicor Blog (OTCBB: VMCI)

Thoughts on iMedicor (OTCBB: VMCI) and USA MCO Announcement - "Strategic Alliance Agreement to Create the National Healthcare Communications Network"

  

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Last month, I put out a OSI Reseach Report on iMedicor (OTCBB: VMCI) where I stated in reference to their business model:

"On the subscription side of iMedicor’s revenues, the Company has secured contracts with:

1. Physician’s Alliance Network of America (20,000 physicians);
2. One of the largest Managed Care Organization in the country (350,000+ physicians), and
3. A soon to be announced national dental organization representing more than 135,000 dentist."

Today, iMedicor announced model #2 with the formal relationship with USA MCO:

"USA MCO, one of the nation's largest Managed Care Organizations, will launch a joint awareness campaign with iMedicor to let physicians within its network know that they now have simple access to a national Healthcare Information Exchange (HIE) that will allow physicians to satisfy "meaningful use" regulations. The focus will be the enrollment of USA MCO's 350,000 plus physicians, medical practices and other healthcare providers into the iMedicor HIPAA compliant Health Information Exchange and social community portal. USA MCO represents nearly half of the practicing physicians in the United States."

This begins the process of iMedicor establishing credibility in the medical marketplace. USA MCO is "the largest, most comprehensive, privately-held Preferred Provider Organization in America. Through esteemed panels of preferred providers, ancillary products and specialty services covering the full continuum of care, USA offers innovative alternatives to traditional group health and workers' compensation medical benefits. With a distinct freedom of choice flexibility and a 100% user-friendly platform, USA affords sound solutions through a portfolio of integrated options that are uniquely client driven; focused on the seamless blend of quality care and cost containment."

The key to the press release is the line that states, "Unlimited use of the NHCN will only be $19.95 per month per physician. Other Healthcare providers and medical practice staff members connected to the originating physician's subscription will be charged a discounted rate relative to the originating physician's subscription."

With only 10,000 subscibers per year, you are looking at annual shared revenues of $2.4 million per year. Management is certainly expecting for better penetration rates than that and you can see CEO Fred Zolla in our CEO Video Interview.

The revenue model begins at iMedicor.

Full Press Release