WELL Health Technologies has entered a definitive agreement with Jack Nathan Medical (JNH) to acquire the latter’s Canadian clinical assets.
This strategic move 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 will form the basis for WELL Health's new affiliate clinic business stream.
Upon completion of the transaction, WELL Health will obtain Jack Nathan's rights to operate medical clinics within Walmart Canada stores.
The deal provides a platform for WELL Health to grow its primary care operations and expand its network of owned, operated, and affiliate-managed clinics within Walmart Canada's extensive footprint of over 400 Canadian locations.
The clinics offer convenient access to healthcare in densely populated areas.
WELL Health anticipates utilising its shared services programme and clinic transformation initiatives to enhance the performance of the clinics, aiming for profitability on an adjusted EBITDA basis by 2025.
WELL Health founder and CEO Hamed Shahbazi said: "Acquiring JNH's Canadian business will mark 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.
“These clinics, situated in Canadian Walmart stores across a diverse network of 13 Canadian cities, will benefit from WELL's optimisation tools and digital innovations aimed at improving efficiency and enhancing the provider experience."
The acquisition cements WELL Health's status as the largest clinic owner-operator in Canada.
WELL Health chief medical officer Michael Frankel said: "Primary care is the foundation of the healthcare system, and this expanded footprint enables WELL to equip physicians with the tools and support they need to deliver care more efficiently and effectively.
“This acquisition strengthens WELL's position as a leading healthcare company focused on empowering providers, improving workflows, and ensuring the sustainability of clinic operations."
WELL Health's expansion of its affiliate clinic business model will involve recruiting and placing physicians into smaller clinics owned and operated by the physicians themselves.
WELL Health will provide comprehensive technology and operational support while generating rental income without operational responsibilities.
JNH executive vice chairman Mike Marchelletta said: "WELL Health is well positioned to leverage its impressive technology stack, operational expertise and advancements in AI to improve access to millions of patients within the JNH network across Canada while also enhancing the patient and physician experience.
“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."
