Net Medical Xpress Solutions announces revenue for the first six months of 2014 was $2,445
For the second quarter of 2014, the company reported revenue of $1,174,000 versus revenue of $1,206,000 in the second quarter of 2013. Net loss for the quarter was ($67,000) versus a gain of $1,000 in the second quarter of 2013.
CEO Dick Govatski said, "For the first six months of 2014, we recorded good growth in our Specialist division with revenue from Neurological Services up 63%. Cardiological services revenue in our Services Division rose 103% for the first six months but that gain was offset by slippage in our radiological services due to a decreased number of reads. Our largest slippage, however, was in our Staffing Division, which lost a major customer causing a significant fall off in revenue for that segment, which strongly affected our overall results.
"While it was disappointing to lose the account, we remain optimistic and upbeat about opportunities in the staffing area. We recorded new revenues in the Staffing Division in July and we are working to close additional new business there, which we intend to report in our third quarter results.
"We regard our Staffing segment as an important building block to our strategy for growth. The global telemedicine market grew from $9.8 billion in 2010 to $11.6 billion in 2011 and is forecast to almost triple to $27.3 billion by 2016, a compound growth rate of 18.6% over the next five years.
"Partially fueling this is more states are enacting laws allowing insurance reimbursement for various forms of telehealth. This reflects the increasing emphasis placed on reducing costs in an increasingly uncertain time in American healthcare and the important role that telemedicine is already playing.
"Another contributing factor is the projected shortage of doctors in the U.S. in the coming years. An estimate by the Association of American Medical Colleges (AAMC) says the United States faces a shortage of 130,600 physicians by 2025. Telemedicine is key to making the most efficient use of physicians.
"Net Medical's Staffing division has recruited a sizable pool of physicians over the past two years. We have the qualifications and expertise to leverage this expertise. The market need is clearly there but our effort requires competent staffers recruiting on a full time basis. Building out this infrastructure is a serious investment for us, but I am confident it will pay off for this division and for Net Medical," Govatski said.