NASHVILLE, Tenn.--(BUSINESS WIRE)--
HealthStream, Inc. (NASDAQ:HSTM), a leading provider of workforce,
patient experience, and provider solutions for the healthcare industry,
today announced Laerdal Medical A/S, a Norwegian company ("Laerdal"),
has ended renewal negotiations for the agreements with HealthStream
regarding the HeartCode and Resuscitation Quality Improvement (RQI)
products.
Highlights:
-
Current agreements expire on December 31, 2018; HealthStream will
continue selling and servicing current resuscitation products through
that period.
-
No impact on previously stated full-year 2017 financial guidance.
-
HealthStream is committed to resuscitation solutions for the long-term
- and will, in January 2019, introduce competition and choice with
disruptive, lower-cost, guideline-compliant resuscitation programs.
-
HealthStream launches Awards Program to recognize quality, innovation,
and cost containment in resuscitation by hospitals and health systems.
Terms of Agreements through December 31, 2018
Laerdal provided notice that, upon the December 31, 2018, expiration of
its existing agreements with HealthStream regarding the HeartCode and
Resuscitation Quality Improvement (RQI) products, Laerdal does not
intend to continue these existing agreements or enter into new
agreements with HealthStream in relation to such products.
HealthStream's Joint Marketing and Licensing Agreements with Laerdal for
HeartCode and for RQI, respectively, remain unaltered and continue in
effect through December 31, 2018. Up to that expiration date,
HealthStream retains the right to offer HeartCode and RQI licenses that
extend, and correspondingly generate revenue, through December 31, 2020.
HealthStream retains exclusivity of RQI sales to its existing customer
network through the agreement expiration date of December 31, 2018, and
is prohibited from selling substantially similar products to HeartCode
and RQI during that time.
HealthStream expects to continue selling HeartCode and RQI for the next
18 months and will provide uninterrupted support and excellent service
to all of its HeartCode and RQI customers for the duration of their
current and renewed contracts through December 31, 2020.
Financial Overview
Although sales of the HeartCode and RQI products have been strong over
the past several years, margins on such products are lower than
HealthStream's average margin. During the twelve months ended March 31,
2017, HeartCode generated approximately $37.8 million of revenue and RQI
generated approximately $1.9 million of revenue.
The announcement today of the expected conclusion of HealthStream's
agreements with Laerdal does not affect HealthStream's previously stated
financial guidance for 2017.
Bringing Choice to Customers in January 2019
Robert A. Frist, Jr., chief executive officer, HealthStream, said, "We
believe disruptive resuscitation technologies and innovation should
drive quality up and cost down for our healthcare customers. We are in
active negotiations to bring several disruptors that would deliver
lower-cost, guideline-compliant resuscitation programs to our customers
in January 2019.
"As we serve thousands of hospitals and health systems on a daily basis,
HealthStream's role includes bringing choice and competition to the
marketplace on their behalf. We have, for example, already successfully
brought a wide selection of training options to customers in other
solution areas, including two of the top three leading brands in
clinical skills development. We are extending this approach to
resuscitation solutions."
Awards Program for Quality, Innovation, & Cost Containment in
Resuscitation Launched
To support our long-term commitment to hospitals and providing quality,
innovative resuscitation programs, HealthStream is launching an Awards
Program for quality, innovation, and cost containment in resuscitation.
The awards will be given to hospitals that demonstrate outstanding,
cost-efficient innovation in resuscitation programs. The first award
recipient will be recognized in the third quarter of 2017. To learn more
about the Award Program, go to: http://www.healthstream.com/community/awards-of-excellence-2017.
"We are committed to making the next 10 years a period of great
improvement in the quality of resuscitation," said CEO Frist. "We
believe the forces of competition, choice, and disruptive technologies
will drive that movement so that quality improvement can become more
affordable."
About HealthStream
HealthStream (NASDAQ:HSTM) is dedicated to improving patient outcomes
through the development of healthcare organizations' greatest asset:
their people. Our unified suite of solutions is contracted by,
collectively, approximately 4.6 million healthcare employees in the U.S.
for workforce development, training & learning management, talent
management, credentialing, privileging, provider enrollment, performance
assessment, and managing simulation-based education programs. Our
research solutions provide valuable insight to healthcare providers to
meet HCAHPS requirements, improve the patient experience, engage their
workforce, and enhance physician alignment. Based in Nashville,
Tennessee, HealthStream has additional offices in Brentwood, Tennessee;
Jericho, New York; Boulder; Colorado; Chicago, Illinois; and San Diego,
California. For more information, visit http://www.healthstream.com
or call 800-933-9293.
This press release includes certain forward-looking statements
(statements other than solely with respect to historical fact),
including statements regarding expectations for the financial
performance for 2017, statements in relation to anticipated developments
associated with the expiration of HealthStream's existing agreements
with Laerdal regarding the HeartCode and RQI products, and statements
regarding the anticipated introduction of new partners and products
following the expiration of these agreements with Laerdal, that involve
risks and uncertainties regarding HealthStream. These statements are
based upon management's beliefs, as well as assumptions made by and data
currently available to management. This information has been, or in the
future may be, included in reliance on the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. The Company
cautions that forward-looking statements involve known and unknown
risks, uncertainties, and other factors that may cause the actual
results, performance, or achievements to be materially different from
future results, performance, or achievements expressed or implied by the
forward-looking statements, including, without limitation, as the result
of risks referenced in the Company's Annual Report on Form 10-K and in
the Company's other filings with the Securities and Exchange Commission.
Consequently, such forward-looking information should not be regarded as
a representation or warranty or statement by the Company that such
projections will be realized or that the expectations of the Company
reflected in such forward-looking statements will ultimately occur. Many
of the factors that will determine the Company's future results are
beyond the ability of the Company to control or predict. Readers should
not place undue reliance on forward-looking statements, which reflect
management's views only as of the date hereof. The Company undertakes no
obligation to update or revise any such forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170626005419/en/
HealthStream, Inc.
Mollie Condra, Ph.D., 615-301-3237
Vice
President, Investor Relations & Communications
Mollie.condra@healthstream.com
Source: HealthStream, Inc.
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