Vitasora’s Medicaid Push Faces Margin Pressure Despite $4M Revenue Potential

• Expansion of Vitasora-TFHC partnership to Medicaid patients
• 7,000 Medicaid patients targeted for Chronic Care Management and Remote Patient Monitoring
• Estimated US$4+ million in annualized revenue from fee-for-service model
• First Florida FQHC to implement Vitasora’s value-based care programs for underserved populations
• Program launch expected mid-September 2025 with automatic contract renewal

A Strategic Expansion into Medicaid Care

Vitasora Health Limited (ASX, VHL) has announced a significant expansion of its existing partnership with Tampa Family Health Centers (TFHC), extending its AI-powered Connected Care services to include Chronic Care Management (CCM) and Remote Patient Monitoring (RPM) for Medicaid patients. This move unlocks a new revenue stream estimated at over US$4 million annually, targeting approximately 7,000 Medicaid beneficiaries within TFHC’s network.

TFHC, Florida’s largest Federally Qualified Health Center, operates 23 clinics serving around 48,000 Medicaid patients. By integrating Vitasora’s value-based care programs, TFHC becomes the first FQHC in Florida to adopt such digital health solutions aimed at improving outcomes for underserved populations who often face complex chronic conditions.

Driving Healthcare Equity Through Innovation

This partnership underscores a shared commitment to healthcare equity and closing care gaps. Vitasora’s technology-driven approach leverages remote monitoring and chronic care management to provide continuous, personalised care outside traditional clinical settings. The program’s fee-for-service reimbursement ranges from US$35 to US$90 per patient per month, depending on service intensity, reflecting a scalable model that balances quality care with financial sustainability.

The contract is structured for an initial one-year term with an automatic renewal, signalling confidence in the program’s long-term viability. Patient enrolment is expected to begin by mid-September 2025, with revenue flows anticipated shortly after, aligned with Centers for Medicare & Medicaid Services (CMS) reimbursement cycles.

Broader Implications for U.S. Healthcare

While Medicaid reimbursement rates are typically lower than Medicare’s, the collaboration between Vitasora and TFHC reflects a strategic vision prioritising access and quality over short-term margins. With over 1,400 FQHCs nationwide serving more than 32 million patients, many covered by Medicaid and Medicare, this model presents a substantial opportunity to revolutionise care delivery for vulnerable populations.

Vitasora’s CEO, Marjan Mikel, emphasised the significance of this expansion, highlighting the potential for digital, value-based care to create universal impact at scale. The company is actively pursuing similar agreements across the U.S., positioning itself as a first mover in the underserved care innovation space.

Additionally, Vitasora’s proprietary wheezo® medical device, an FDA-approved tool for respiratory monitoring, complements its RPM offerings, enhancing clinical insights and patient engagement. This integration of technology and care delivery exemplifies the company’s disruptive approach to chronic disease management.

Bottom Line?

Vitasora’s Medicaid expansion with TFHC sets the stage for scaling digital care to millions, but execution and enrolment will be key to unlocking its full potential.

Questions in the middle?

• How quickly will patient enrolment ramp up to the projected 7,000 participants?
• What impact will lower Medicaid reimbursement rates have on Vitasora’s margins?
• Can Vitasora replicate this model with other FQHCs nationwide to sustain growth?