Zynex Announces Partnership To Conduct Business with Veterans Affairs (VA) Medical Centers, the Largest Healthcare Network in the United States

Rhea-AI Summary

Zynex (NASDAQ: ZYXI) has announced a new partnership to conduct business with Veterans Affairs Medical Centers (VAMCs) across the United States. This collaboration gives Zynex access to the VA's extensive healthcare network, which spends over $112 billion annually on healthcare and serves over 9 million enrolled veterans.

The partnership encompasses 171 VAMCs and over 1,100 outpatient facilities, plus approximately 700 Military Treatment Facilities operated by the Department of Defense. Currently, less than 1% of Zynex's sales come from VAMCs, presenting a significant growth opportunity for the company's non-opioid pain management solutions.

Positive

• Access to VA's extensive healthcare network with $112 billion annual healthcare spending
• Potential for significant sales growth from current <1% VA sales level
• Access to 171 VAMCs, 1,100+ outpatient facilities, and 700 Military Treatment Facilities

Negative

• Current VA sales represent less than 1% of total sales

Insights

Financial Analyst

This strategic partnership represents a significant market expansion opportunity for Zynex. The VA's $112 billion annual healthcare spending and network of 171 medical centers present a substantial revenue growth potential, especially considering Zynex's current minimal <1%> penetration in VA sales. The addressable market is further expanded by 700 Military Treatment Facilities.

The timing is particularly opportune given the increasing focus on non-opioid pain management solutions in healthcare. With 9 million enrolled veterans in the VA system, even capturing a small market share could meaningfully impact Zynex's revenue. For a company with a market cap of $263 million, successful penetration into this massive healthcare network could be transformative for their growth trajectory.

Healthcare Policy Analyst

This partnership aligns perfectly with the VA's ongoing initiatives to address chronic pain management while reducing opioid dependency among veterans. The VA healthcare system's extensive reach and integrated structure could accelerate adoption of Zynex's non-invasive medical devices. The ability to access both VAMCs and MTFs creates a comprehensive distribution channel that covers both veteran and active military populations.

The administrative framework for VA partnerships typically ensures steady, reliable payment processes and long-term relationships, which could provide Zynex with stable revenue streams. The company's full product suite approach positions them well to address diverse pain management needs across this large patient population.

VA Spending on Hospital and Medical Care Exceeds $112 Billion Annually

ENGLEWOOD, Colo., Dec. 17, 2024 /PRNewswire/ -- Zynex, Inc. (NASDAQ: ZYXI) ("Zynex", "ZMS", "we" or the "Company"), an innovative medical technology company specializing in the manufacture and sale of noninvasive medical devices for pain management, rehabilitation, and patient monitoring, today announced a new partnership to conduct business with Veterans Affairs Medical Centers (VAMCs) across the United States. This collaboration reflects Zynex's commitment to improving access to high-quality care for our nation's veterans.

It is estimated that the VA spends over $112 billion annually on healthcare. This partnership enables Zynex to bring its advanced pain management solutions to a critical and growing market, with the VA's system alone servicing over 9 million enrolled veterans. Currently, less than 1% of Zynex's sales are from VAMCs and the partnership provides an opportunity to significantly expand sales into the largest healthcare network in the U.S.

With 171 VAMCs and over 1,100 outpatient facilities nationwide, the Department of Veterans Affairs serves millions of veterans annually. Additionally, there are approximately 700 Military Treatment Facilities (MTFs) operated by the Department of Defense, forming an extensive network for addressing the healthcare needs of service members and their families.

"Our partnership to do business with the VA represents a significant milestone in expanding access to non-opioid pain management solutions for those who have served our country," said Thomas Sandgaard, CEO, Founder, and Chairman. "Working with the VA provides us with access to the largest healthcare network in the United States and we are honored to help enhance the quality of care for veterans nationwide."

As part of this collaboration, Zynex's sales team will work closely with healthcare providers within the VA and MTF networks to deliver its full product suite of innovative, pain management treatments designed to improve patient outcomes while addressing the unique pain management needs of these populations.

About Zynex, Inc.

Zynex, founded in 1996, develops, manufactures, markets, and sells medical devices used for pain management and rehabilitation as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals. For additional information, please visit: www.zynex.com.

Safe Harbor Statement
This release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company makes no express or implied representation or warranty as to the completeness of forward-looking statements or, in the case of projections, as to their attainability or the accuracy and completeness of the assumptions from which they are derived. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement for our products from health insurance companies, our dependence on third party manufacturers to produce our products on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the impact of COVID-19 on the global economy and other risks described in our filings with the Securities and Exchange Commission including but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 as well as our quarterly reports on Form 10-Q and current reports on Form 8-K.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations Contact:
Brian Prenoveau, CFA
MZ Group – MZ North America
ZYXI@mzgroup.us
+561 489 5315

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SOURCE Zynex, Inc.

FAQ

What is the size of the VA healthcare market that ZYXI can now access?

The VA healthcare market represents over $112 billion in annual spending and serves more than 9 million enrolled veterans through 171 VAMCs and over 1,100 outpatient facilities.

What percentage of ZYXI's current sales come from VA Medical Centers?

Currently, less than 1% of Zynex's sales come from Veterans Affairs Medical Centers (VAMCs).

How many VA facilities will ZYXI have access to through this partnership?

Through this partnership, ZYXI will have access to 171 VA Medical Centers, over 1,100 outpatient facilities, and approximately 700 Military Treatment Facilities.

What products will ZYXI offer to VA Medical Centers?

ZYXI will offer its full product suite of innovative, non-opioid pain management treatments to VA Medical Centers and Military Treatment Facilities.