Closely following the announcement of what's to become of the new regulations for telehealth, including ketamine therapy, several of in-clinic treatment centers have announced they are closing their operations.
One of them is the famed Field Trip Health & Wellness Ltd. (OTC:FTHWF) which, "in an effort to reduce expenditures and preserve capital" will close its facilities in Chicago, Washington DC, Seattle, San Diego and Fredericton, Canada as of April 15, 2023.
Interestingly, not long ago a conference hosted by Cantor Fitzgerald analyst Pablo Zuanic, Chad ketamine therapy companies Field Trip, Irwin Naturals (OTC:IWINF) and Numinus Wellness (OTC:NUMIF) shared their views on the ketamine space, Irwin's CEO praised the value of Field Trip's offer.
Field Trip will provide clients with information on finding alternative care providers, how to access their medical records and other information required by applicable laws and regulations.
Moreover, the company's Independent Committee (IC) created last December to assess strategic options, along with financial and legal advisors, will "continue to review operations and investigate alternate courses of actions including, but not limited to, further cost reductions, restructuring, the potential sublease or closure of clinic locations and settlement of lease obligations."
See also: Field Trip H&W Closes Q3 2023 On Material Uncertainty, Need To Lower Costs & Adapt To New Regulations
Another major provider has also announced it will be shutting down its ketamine therapy clinic. Delic Holdings (OTC:DELCF)' acquired Ketamine Wellness Centers (KWC) have "suspended" their operations. While providing their patients the chance to obtain their records, no further public information was made available at the moment.
Although many ketamine therapy businesses are still thriving as patients treat their depression, anxiety, or other mental health conditions and PTSD, the almost concurrent announcements indicate that this might be more than a mere coincidence. Business, as we know, requires a wait-and-see (or in this case, inform) approach.
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