Custom Health CEO discusses US expansion after TSX debut - ICYMI
Custom Health Holdings Inc (TSX:CHLT) CEO Shane Bishop talked with Proactive about the company's technology-enabled pharmacy model, its expansion strategy and the opportunities ahead following its recent TSX listing.
Proactive: Welcome back inside our Proactive newsroom. Joining me today is Shane Bishop, CEO of Custom Health. Shane, great to see you.
Shane Bishop: Thank you. I appreciate the invitation and look forward to the conversation.
Custom Health has an interesting history. It was founded to solve challenges in long-term healthcare. Can you explain how the company began?
I'm a pharmacist by profession, and early on we identified a systemic problem between pharmacy and nursing in long-term care around medication administration. We developed technology to improve the accuracy of that process. That original solution remains part of our business today, but it also became the foundation for expanding our model into patients' homes.
The company has evolved significantly since then. How does Custom Health operate today?
We've built infrastructure that connects pharmacies we own and operate with in-home medication dispensing technology. The device collects patient information up to four times a day, and that information flows into our platform where remote clinicians analyse it. We also integrate with electronic health records and electronic medical records, allowing us to send real-time recommendations to physicians. Our focus is delivering proactive patient care.
What does the patient experience look like at home?
One of our major focus areas is pain management in the United States. We've reduced opioid usage among patients by 27%. Prescriptions are filled through our pharmacies, packaged into specialised medication cartridges and delivered to the patient's home. The dispensing device releases medication at scheduled times, captures an image of the medication for chain-of-custody tracking and asks patients questions, such as their current pain level. About 91% of patients respond. Our clinicians use that information to determine whether medication adjustments may be appropriate and communicate recommendations to physicians to help reduce addiction risk while maintaining effective pain management.
Custom Health recently completed an acquisition. How does that fit into the growth strategy?
We're targeting pharmacy acquisitions in geographies where reimbursement already exists for our model. These are often pharmacies we already work with. Owning the pharmacies gives us greater control over quality and deployment while combining acquisition-driven growth with additional patient volume flowing into the business. We believe that creates an attractive and scalable model.
Will growth primarily come from Canada or the United States?
We expect approximately 80% of our growth to come from the United States because reimbursement for pharmacy-led services is more developed there. Canada also represents an opportunity, but the US will likely remain our primary focus.
The company recently began trading on the TSX under the ticker CHLT. What does becoming a public company mean for Custom Health?
Access to the public markets supports our growth strategy. It allows us to raise equity to expand organically by deploying more devices and building our clinical team, while also strengthening our balance sheet to support pharmacy acquisitions. Public markets also provide flexibility through cash-and-share acquisition structures.
What should investors watch for over the coming year?
Investors should watch for continued growth in key geographies, announcements involving larger healthcare providers and the expansion of our pharmacy footprint. Our strategy combines pharmacy acquisitions with software and technology service revenue, creating a differentiated model that we believe positions the company well for future growth.
Thank you. It was great speaking with you.
Quotes have been lightly edited for style and clarity