TORONTO--(BUSINESS WIRE)--GreeneStone Healthcare Corp. (OTCBB: GRST) (“GreeneStone” or “the Company”) announced today that it has identified a property in Ontario that is well suited to serve as an in-patient addiction treatment expansion facility, and that the Company is in active discussions to secure the property. This property has the potential to add 60 beds to GreeneStone’s existing 36 bed capacity in Muskoka. Having been used for similar purposes previously, the property can be brought on stream relatively quickly. Approaching full capacity at its Muskoka location, GreeneStone is positioning to handle increasing demand for addiction treatment. “It takes a lot of time to be patient ready and until you know where you will be offering your services, it’s hard to move forward building the work force. It all starts with the location. We now know where we can add capacity and we are moving forward to secure these premises,” commented Shawn Leon, CEO of GreeneStone Healthcare Corp.
With a similar ramp-up as GreeneStone Muskoka experienced, this new expansion facility can raise GreeneStone’s total in-patient addiction treatment capacity to over 100 beds over the next year. This increased capacity allows GreeneStone to pursue larger groups that the Company has identified as providers of multiple patient referrals. “These referral sources need to know that you can provide the capacity and that you have the capabilities to provide the treatment required. We have shown that we have the capabilities and now we can demonstrate the capacity,” added Mr. Leon.
For every $5 spent on drug rehabilitation by the Canadian government, $95 is spent on incarceration of drug users (Health Officer’s Council of BC). At the same time, substance abuse costs the Canadian healthcare system an estimated $8 billion annually and the economy an estimated $34 billion (Canadian Centre on Substance Abuse). The majority of the economic cost of substance abuse – an estimated 85% – is due to lost productivity. As such, GreeneStone has focused on Boomers, executives, and professionals as its primary patient stream (with the 18-30 year old segment as the secondary stream).
With a dedicated Eating Disorder clinic facility secured, and the launch of the Outpatient and Aftercare clinic underway, GreeneStone is extending its vertical expertise in addiction treatment and related mental health issues. The Company is pursuing a strategy of deep vertical expertise in niche, underserviced mental health areas. As the Company expands its specialty facility network, existing capacity will be more efficiently utilized. For example, GreeneStone’s planned trauma specialty facility in Toronto will provide space for patients who would otherwise occupy detoxification beds at the Muskoka facility, thus effectively expanding the company’s available detox capacity, and revenue per bed potential. “We know that there is a greater demand for detox beds than what we have allowed to treat our full program patients,” commented Mr. Leon.
About GreeneStone Healthcare Corporation
GreeneStone Healthcare Corporation (OTCBB: GRST) operates medical and healthcare clinics in Ontario, Canada. GreeneStone’s clinics serve to add overflow capacity to an increasingly stretched provincial healthcare system, and provide private alternatives to publicly available healthcare services. Its four medical clinics (three in Toronto, along with a facility in Muskoka, Ontario) offer various medical services, including addiction treatment, endoscopy, minor cosmetic procedures, and executive health care services. The company currently has more than 50 employees and is based in North York, Ontario.
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). To the extent that any statements made in this press release contain information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by the use of words such as “expect,” “plan,” “will,” “may,” “anticipate,” “believe,” “should,” “intend,” “estimate,” and variations of such words. Forward-looking statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, those risks and uncertainties contained in this press release and those identified in the periodic reports that the company files with the Securities and Exchange Commission (the “SEC”) pursuant to the Exchange Act.
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