Diagnostic Imaging International Corp. (OTCBB: DIIG)
LEVEL 1 TRADE IDEA
Dear Members,
We will get back to the valuation story shortly. First let's talk about what they do.
The Diagnostic Imaging International’s business story is one I completely understand and KNOW to be true. Small rural hospitals CANNOT get radiologists. Diagnostic Imaging International Corp. (OTCBB: DIIG) through its subsidiary, Canadian Teleradiology Services (”CTS”), has the proven solutions with a tried and true business model. They’ve been perfecting it for five years and the proof is in the revenue.
Remote radiology, also known as teleradiology, provides radiology technology to hospitals and practices, on-call 24 hours a day, seven days a week. CTS connects clients with a teleradiology network, providing access to global partner facilities and American and Canadian board-certified radiologists.
CTS offers interpretations of MRI, CT, PET, US, NM, MAMMO, X-Ray and BMD modalities by radiologists 24 hours a day, 365 days a year. CTS receives medical diagnostic scans from hospitals and clinics, and transmits them to approved, certified radiologists, who are typically located in larger urban medical centers. The radiologists read the scans and review the information, prepare a medical report, and transmit the reports to the hospitals and clinics.
I am excited to bring this company to you. The story here is not just the service DIIG brings but their track record. We are in the cat bird seat here in terms of finding this gem.
Diagnostic Imaging’s subsidiary is Canadian Teleradiology Services (”CTS”) providing remote diagnostic imaging services to hospitals AND the Company has plans to expand upon this proven business model while working toward the development of its own diagnostic imaging clinics.
This is the BIG NEWS. They are taking they successful foundation and building on it.
Timing is everything in terms of shareholder value. This is the perfect time to take a position on this up and coming company.
More on DIIG coming. Please do your due diligence here.
Feel free to email me any questions. John@StockGuru.com
Thank you,
John Pentony
Publisher, StockGuru
OUR PROFILE FOR DIIG:
Diagnostic Imaging International Corp. (OTCBB: DIIG) Diagnostic Imaging’s subsidiary is Canadian Teleradiology Services (”CTS”) providing remote diagnostic imaging services to hospitals. The Company plans to expand CTS while working toward the development of its own diagnostic imaging clinics.
Remote radiology, also known as teleradiology, provides radiology technology to hospitals and practices, on-call 24 hours a day, seven days a week. CTS connects clients with a teleradiology network, providing access to global partner facilities and American and Canadian board-certified radiologists.
CTS offers interpretations of MRI, CT, PET, US, NM, MAMMO, X-Ray and BMD modalities by radiologists 24 hours a day, 365 days a year. CTS receives medical diagnostic scans from hospitals and clinics, and transmits them to approved, certified radiologists, who are typically located in larger urban medical centers. The radiologists read the scans and review the information, prepare a medical report, and transmit the reports to the hospitals and clinics.
CTS Meets Demand for Affordable and Accessible Healthcare in United States and Canada
CTS, by offering the services of radiologists to rural hospitals, is at the forefront of three crucial movements in the healthcare industry:
• Affordable Healthcare
• Accessible Healthcare
• Timely Healthcare
Healthcare Companies able to generate cost efficiencies will be at the forefront of demand in the United States and Canada.
CTS fits squarely in the healthcare gold-rush stampede to medical dollar savings. CTS has for the last five years established itself as Can Do Teleradiolgy Service and has quickly built on the medical opportunities presented by offering accessible radiology services.
2009 Business Model Established and 2010 Year for CTS Expansion
CTS generated revenues exceeding $0.8 million USD in 2008, with revenues for the first nine months of 2009, expanding to $ 1.07 million USD. As revenues increase CTS continues to validate its business model by adding enhanced and additional contractual agreements for its services.
The Company plans to make additional acquisitions of existing profitable diagnostic clinics throughout major metropolitan areas within North American in 2010 which will continue to expand revenue and the CTS’s client base.
Inherent in the CTS business model is the strong advantage of low fixed cost with a limited variable cost structure. This low fixed cost business structure is able to drop top line growth to the Company’s bottom line. With overhead low, DIIG is able to turn its growth momentum into superior shareholder value.
Largest Service Contract Extended for Five Years
CTS service contracts continue to enhance revenues and serve as an validation of the CTS business model in providing effective 24/7 radiology services to rural hospitals that might otherwise not be able to offer efficient, effective and time sensitive health services to their indigenous communities.
• CTS has been providing teleradiology services to North America for the past five years
• CTS was recently approved for a five year extension of its largest current service contract
• The contract covers three public hospitals where CTS will provide remote reading and reporting covering modalities such as MRI, CT, X-Ray and Ultrasound
• In 2009, four client hospitals using CTS for nighttime services opted to expand its use of CTS by singing daytime contracts and now use CTS for all their radiology needs, 24/7
DICOM images are sent via PACS technology using a secured web based program
Canada: Favorable demographics for CTS exist in Canada. While Canada has government sponsored healthcare it has in some instances, limited healthcare availability. In the 1990’s some medical schools were closed as a cost savings measure which ultimately came at a high cost to the healthcare system. Canada continues to suffer from too few doctors and a lower per capita number of doctors than most developed countries.
CTS addresses physician shortages with Teleradiology services. Canada does not have a sufficient number of radiologists to staff remote hospitals twenty-four hours a day for crucial radiology services which may be required for trauma and non-scheduled events such as strokes and heart attacks during evening/night hours and on the weekend.
Favorable Demographics Support Additional Growth
The business model of CTS in providing Teleradiology has been confirmed by their consistent growth. The fundamental demographics of Canada and the United States support future planned expansion. CTS has taken this opportunity and created a full service support system through Teleradiology.
Teleradiology Market for Growth
Teleradiology market projected to grow 14% per annum as more regions are impacted by a shortage of radiologists
• There are over 2400 IDTFs (independent diagnostic testing facilities) in the United States alone. Source: American Medical Information (AMI), a division of info USA
• “The global medical imaging market was estimated at $60 billion in 2006. Growth is expected to reach 8 to 10 percent annually over the next four or five years…with the industry swelling to $80 billion in revenue by 2010.” Source: Kalorama Information
• The United States medical imaging market is estimated to experience robust growth, reaching $11.4 billion by 2012 Source: BCC Research, Medical Imaging: Equipment and Related Products
• The global market for PACS and Teleradiology Systems is projected to reach $4.4 billion by 2010 Source: RAMIC Medical Imaging
• CTS has over 95 perecent revenue paid by the Ontario Government directly every 30 days, and as such CTS benefits from having little to no aged payables
• CTS estimates there is a shortage of up to 1,500 radiologists in Ontario, and 5,000 in Canada
• Most hospitals do not have agreements with companies like CTS so there are possibilities to become a leader within the Canadian market and establish a solid North American presence
Need for Additional Services: The Canadian Institute for Health Information found that Canada has 4.6 MRI scanners per million citizens, while Japan and the United States have much higher coverage at 35.3 per million and 19.5 per million, respectively.
In Canada the radiologist-to population ratio is 1:18,000, as compared to a ratio of 1:8,000 in the United States. The median for the industrialized countries is 6.1 MRI scanners per million citizens. The institute report also noted that despite repeated promises from both federal and provincial governments to reduce patient wait times, wait times are increasing in Canada. In 2003, Canadians waited on average 47 days for non-emergency MRIs, up from 39 days in 2001.
In addition, the Company plans to provide MRI reading services to hospitals and clinics in the Middle East and around the world.
United States: Reducing costs associated with healthcare has become the national mandate. The CTS business model can provide medical centers with physicians on an “as needed” basis. CTS delivers services when needed. In the United States healthcare spending is predicted to nearly double to $4.3 trillion over the next decade – healthcare spending will account for 19.5 percent of U.S. GDP by 2017, in the United States according to the Centers for Medicare and Medicaid Services, National Health Expenditure Data, February 2008.
Radiologists Serve Remote Locations
Teleradiology improves patient care by allowing Radiologists to provide services without actually having to be at the location of the patient. Additionally, CTS provides the highly desirable opportunity to deliver the ultra-specialized services of a sub-specialist in remote areas. This would include an MRI Radiologist, Neuroradiologist, Pediatric Radiologist, or Musculoskeletal Radiologist who are typically only located in large metropolitan areas.
Teleradiology images can be sent to another part of the hospital, or to other locations around the world. This means CTS can provide services worldwide.
Teleradiology Services
• CTS connects clients with a global teleradiology network, providing access to global partner facilities and American and Canadian board-certified radiologists.
• The Company specializes in MRI, CT, PET, US, NM, MAMMO, X-Ray and BMD modalities.
• Preliminary interpretations are available within an average of 30 minutes.
• The CTS operation center co-ordinates physicians and radiologists 24 hours a day, 365 days a year.
• CTS receives diagnostic scans from hospitals and clinics, and transmits them to approved, certified radiologists, who are typically located in larger urban medical centers.
• The radiologists read the scans and review the information, prepare a medical report, and transmit the reports to the hospitals and clinics.
• This service system also helps hospitals and clinics in remote locations, where it is difficult to hire skilled radiologists, and access professional, skilled radiology staff.
The benefits to the radiologists that join the CTS Team include but are not limited to:
• Ability to make additional income
• Flexibility to work from home as opposed to being “locked” in a room in the hospital
• Ability to spend time with their families
Full PACS Networking and Compatibility
The services CTS offers are the most desired by rural hospitals
CTS services include:
• Full PACS Networking and Compatibility
• Certified Radiologists based in North America and are vetted by the hospital
• 24 Hour Turnaround on Non-emergency Reports
• One Hour Turnaround on Emergency Verbal STAT Reports
Why the CTS Business Model Works
Compressed scanned images are transmitted to the CTS Data Centre, including audio dictation, and stored in the PCAS system.. The scanned images are read, and reports transcribed and completed. The system has the ability to update reports. Certified Radiologists sign-off on the transcribed final report.
CTS adheres to all standards and Medical Insurance Plans (Ontario and PHIPA (Personal Health Information Protection Act) guidelines.
CTS radiologists can provide a Preliminary Report for emergency room purposes and a Final Read Report for the official patient record and for use in billing.
Preliminary Reports include all pertinent findings and a phone call for any critical findings. For some Teleradiology services, the turnaround time is extremely quick with a 30 minute standard turnaround, expedited for critical and stroke studies.
Teleradiology Final Reports can be provided for emergent and non-emergent studies. Final reports include all findings and require access to prior studies and all relevant patient information for a complete diagnosis. Phone calls with any critical findings are signs of quality services.
Teleradiology can be available for intermittent coverage as an extension of practices and will provide patients with the highest quality care.
Growth with Diagnostic Imaging Clinics in Canada
In addition to the focus on Teleradiology the Diagnostic Imaging continues to work towards its goal of opening and operating diagnostic imaging clinics in Canada and the United States. The Company’s primary plan will focus on Magnetic Resonance Imaging (”MRI”) clinics.
If successful in the implementation of the MRI clinics, we anticipate adding Computed Tomography (”CT”) scan equipment to those facilities and also will examine future opportunities for Positron Emission Tomography (”PET”) clinics.
Diagnostic Imaging intends to provide imaging services for fees to private individuals, workers compensation boards, private insurance companies and those not covered by government insured programs.
Employees and Directors
Diagnostic Imaging and CTS currently has two full time employees who are the chief executive officer and chairman of the board as well as an accounting and administrative assistant. In addition there are over two dozen radiologists that work with the Company.
About Teleradiology
Teleradiology is the process of assessing radiological patient images, such as x-rays, CTs , and MRIs , from one location to another for the purposes of interpretation and/or consultation. Radiologists are increasingly a scarce resource given that imaging procedures are growing approximately 15% annually against an increase of only 2% in the Radiologist population.
Teleradiology improves patient care by allowing Radiologists to provide services without actually having to be at the location of the patient. This is particularly key when a sub specialist such as an MRI Radiologist, Neuroradiologist, Pediatric Radiologist, or Musculoskeletal Radiologist is needed as these professionals are generally only located in large metropolitan areas. Teleradiology allows trained specialists to be available 24/7.
Diagnostic Imaging International Corp. (OTC.BB: DIIG)
848 N. Rainbow Blvd. # 2494
Las Vegas, Nevada 89107
866-223-2005
Email: info@diig.biz
Website: www.diig.biz
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