Digital Healthcare company WELL Health Technologies Corp. entered into definitive agreements to acquire the clinical assets of Jack Nathan Medical Corp., which includes a network of 16 owned and operated primary care clinics across 13 Canadian cities and a clinic-licensing business with 62 licensee clinics, which the company says will become the model for its new Affiliate Clinic business stream.
In addition, publicly-traded WELL Health will acquire Jack Nathan’s rights to operate medical clinics in Walmart Canada stores that will create a platform to grow its network within Walmart Canada’s footprint of more than 400 Canadian locations.
The company expects the newly acquired clinics to provide convenient access to care in overcrowded regions.
WELL anticipates leveraging its shared services program and clinic transformation initiatives to drive performance, and expects to operate profitably on an adjusted EBITDA basis in 2025.
According to the company, the 16 clinics generated over $10 million in revenue in the past 12 months. Meanwhile, the licensing business produced more than $2.2 million in annual revenue.
Hamed Shahbazi, founder and CEO of WELL, said the acquisition of JNH’s Canadian business marks a key milestone in WELL’s mission to support healthcare providers and improve clinic operations across Canada.
“By adding 90 doctors to our network and expanding with both owned and affiliate clinics, we will be enhancing our ability to support physicians in delivering high-quality care,” Shahbazi said in a statement.
“These clinics, situated in Canadian Walmart stores across a diverse network of 13 Canadian cities, will benefit from WELL’s optimization tools and digital innovations aimed at improving efficiency and enhancing the provider experience.”
Mike Marchelletta, executive vice chairman of JNH, said that WELL Health is well positioned to leverage its technology stack, operational expertise and advancements in AI to improve access to patients within the JNH network.
“The team at WELL Health have demonstrated exceptional leadership in creating sustainable and tech enabled clinical experiences and we will be pleased to see WELL take the network to the next level,” Marchelletta said in a statement.
THE LARGER TREND
In October, WELL Health and HEALWeLL AI expanded a multiyear agreement that allows both companies to launch and manage clinical trial sites at WELL Health clinic locations across Canada.
Last month, WELL Health also launched a new weight-care vertical by its majority-owned subsidiary, Wisp. The company said the expansion marked a step forward in addressing critical health needs related to hormonal imbalances and weight management for women.
In August, WELL Health announced the approval of a $44 million project, Health Compass II, funded by the Canadian government.
The project is designed to continue enhancing AI and interoperability in healthcare, and aims to streamline administrative tasks, increase clinical decision-making and enhance patient outcomes by integrating four AI-driven modules into a mobile app for healthcare providers. The funding round is the biggest DIGITAL project to date for Health Compass II, and DIGITAL will fund over one-third of all project costs over a four-year period.
