What changed in this filing

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Item 1. Business

2022-03-14 compared with 2021-02-25 · 306 added, 287 removed, 58 unchanged (91% of the section changed)

(“MTBC”

and together with its consolidated subsidiaries, the “Company”, “we”, “us”

and/or “our”) is a healthcare information technology company that provides a full suite of proprietary cloud-based

solutions, together with related business services, to healthcare providers and hospitals throughout the United States.

Our Software-as-a-Service

(“SaaS”) platform includes revenue cycle management (“RCM”), practice management (“PM”), electronic

health record (“EHR”), business intelligence, telehealth, patient experience management (“PXM”) solutions

and complementary software tools and business services for high-performance medical groups and health systems.

Inc., formerly MTBC, Inc.

(“CareCloud,” and together with its consolidated subsidiaries, the “Company,” “we,”

“us” and/or “our”) is a leading healthcare information technology company that provides a full suite of proprietary

cloud-based solutions and related business services, to healthcare providers, from small practices to enterprise medical groups, hospitals,

and health systems throughout the United States.

Healthcare organizations today operate in highly complex and regulated environments,

and our suite of technology-enabled solutions helps our clients increase financial and operational performance, streamline clinical workflows,

and improve the patient experience.

Our Software-as-a-Service (“SaaS”) platforms include practice management (“PM”),

electronic health record (“EHR”), business intelligence, telehealth, patient experience management (“PXM”) solutions,

and robotic processing automation (“RPA”) bots, along with complementary software tools and business services such as revenue

cycle management (“RCM”), premiere healthcare consulting and implementation services, and on-demand workforce staffing capabilities

for high-performance medical groups and health systems nationwide.

a high level, these solutions can be categorized as follows:

services, which include end-to-end medical billing, eligibility, analytics, and related services, all of which can often be

provided either with our technology platform or through a third-party system;

healthcare IT software solutions, which can be bundled with our RCM services, including:

which are easy to use, integrated with our business services or offered as Software-as-a-Service (“SaaS”) solutions,

and allow our healthcare provider clients to deliver better patient care, document their clinical visits effectively and thus

potentially qualify for government incentives, reduce documentation errors and reduce paperwork;

software and related tools, which support our clients’

day-to-day business operations and workflows;

Health (“mHealth”) solutions, including smartphone applications that assist patients and healthcare providers

in the provision of healthcare services;

● Technology-enabled

business solutions, which are sometimes provided as individual SaaS offerings and often provided

in combination with each other, including:

which are easy to use and sometimes integrated with our business services, and enable our

healthcare provider clients to deliver better patient care, streamline their clinical workflows,

decrease documentation errors and potentially qualify for government incentives;

software and related capabilities, which support our clients’ day-to-day business operations

and financial workflows, including automated insurance eligibility software, a robust billing

and claims rules engine and other automated tools designed to maximize reimbursement;

solutions designed to transform interactions between patients and their clinicians, including

smartphone applications that assist patients and healthcare providers in the provision of

healthcare services, including contactless digital check-in solutions, messaging and online

appointment scheduling tools;

RPA solution that leverages the power of our own proprietary healthcare-specific microbots,

designed to automate routine financial and clinical workflows across the healthcare industry.

Our solution allows clients to automate costly, labor-intensive tasks, alleviate the surge

in demand for additional labor while driving efficiencies across a large array of healthcare

settings nationwide;

solutions which allow healthcare providers to conduct remote patient visits;

claims clearinghouse, which enables our clients to electronically scrub and submit claims to, and process payments from, insurance

intelligence, customized applications, interfaces and a variety of other technology solutions that support our healthcare

Office Practice Management Services are provided to medical practices.

In this service model, we provide the medical practice

with appropriate facilities, equipment, supplies, support services and administrative support staff.

We also provide management,

bill-paying and financial advisory services.

solutions enable clients to increase financial and operational performance, streamline clinical workflows, get better insight

through data, and make better business and clinical decisions, resulting in improvement in patient care and collections while

reducing administrative burdens and operating costs.

claims clearinghouse which enables our clients to electronically scrub and submit claims

and process payments from insurance companies;

intelligence and healthcare analytics platforms that allow our clients to derive actionable

insights from their vast amount of data;

○ Interoperability

and data transformation software to support the complex realities of data exchange with healthcare

trading partners, including labs, insurance companies, and other healthcare IT vendors;

services including end-to-end medical billing, eligibility, analytics, and related services,

all of which can be provided utilizing our technology platform or through a third-party system;

applications, interfaces and a variety of other technology solutions that support our healthcare

○ Professional

services consisting of application and advisory services, revenue cycle services, data analytic

services and educational training services;

augmentation and on-demand staffing to support our clients as they expand their businesses,

seek highly trained personnel, or struggle with staffing shortages.

practice management services are provided to medical practices.

In this service model, we

provide the medical practice with appropriate facilities, equipment, supplies, support services,

nurses, and administrative support staff.

We also provide management, bill-paying and financial

advisory services.

solutions enable clients to increase financial and operational performance, streamline clinical workflows, get better insight through

data, and make better business and clinical decisions, resulting in improvement in patient care and collections while reducing administrative

burdens and operating costs.

modernization of the healthcare industry is transforming nearly every aspect of a healthcare organization from policy to providers;

clinical care to member services, devices to data, and ultimately the quality of the patient’s experience as a healthcare

We create elegant, user-friendly applications that solve many of the challenges facing healthcare organizations.

partner with organizations to develop customized, best-in-class solutions to solve their specific challenges while ensuring they

also meet future regulatory and organizational requirements and market demands.

February 2020, Healthcare Finance reported that healthcare spending in the U.S.

is projected to rise to $8.3 trillion by 2040.

They reported that nearly 60% of the total cost goes toward hospitals, physicians and clinical services.

The Centers for Medicare

and Medicaid Services (“CMS”) also projected that U.S healthcare spending will grow 5.4% annually on average during

years 2021 through 2028, reaching $6.2 trillion by 2028.

CMS also projected that health spending will grow 1.1% faster than gross

domestic product (“GDP”) annually during the years 2019 through 2028;

and as a result, the healthcare share of GDP

is expected to rise from 17.7% in 2018 to 19.7% by 2028.

care to member services, devices to data, and ultimately the quality of the patient’s experience as a healthcare consumer.

create elegant, user-friendly applications that solve many of the challenges facing healthcare organizations.

We partner with organizations

to develop customized, best-in-class solutions to solve their specific challenges while ensuring they also meet future regulatory and

organizational requirements and market demands.

December 2020, Centers for Medicare & Medicaid Services (“CMS”) reported that national healthcare expenditure in the

grew 9.7% to $4.1 trillion in 2020.

U.S healthcare spending will grow 5.4% annually on average during the years 2021 through 2028,

reaching $6.2 trillion by 2028.

CMS also projected that health spending will grow 1.1% faster than gross domestic product (“GDP”)

annually during the years 2021 through 2028;

and as a result, the healthcare share of GDP is expected to rise from 17.7% in 2018 to 19.7%

Additionally,

analysts from by Markets & Markets have estimated the US Healthcare IT industry market to be approximately $177 billion with

its largest sub-segment RCM to be approximately $87 billion in 2019, growing at a 12% compound annual growth rate (“CAGR”).

The North American EHR market has been estimated to be approximately $40 billion, growing at a CAGR of 6% per year.

The Analytics

and AI sub-segment was estimated to be approximately $30 billion, growing at a 27% CAGR and the Telehealth market is estimated

to be approximately $20 billion with a CAGR of 17%.

Standalone billing and practice management solutions are reported to be declining

in the market today as medical practices move towards integrated, end-to-end systems that incorporate front and back office data

flows, provide seamless access to clinical data from EHRs, and streamline the entire revenue cycle management process.

analysts from Markets & Markets have estimated the US Healthcare IT industry market to be approximately $177 billion with its largest

sub-segment RCM at approximately $87 billion in 2019, growing at a 12% compound annual growth rate (“CAGR”).

The North American

EHR market has been estimated to be approximately $40 billion, growing at a CAGR of 6% per year.

The Analytics and AI sub-segment was

estimated to be approximately $30 billion, growing at a 27% CAGR and the Telehealth market is estimated to be approximately $20 billion

with a CAGR of 17%.

Standalone billing and practice management solutions are reported to be declining in the market today as medical

practices move towards integrated, end-to-end systems that incorporate front and back-office data flows, provide seamless access to clinical

data from EHRs, and streamline the entire revenue cycle management process.

Market Opportunity

the evolving needs of our clients and the market, we believe we continue to be uniquely positioned to provide tremendous value

and support for our clients.

We believe there are dynamics at play that are significantly increasing market need for our products

and services.

We are constantly monitoring and focused on how our role can address the evolving, day-to-day challenges our clients

face so that they can focus on providing excellent patient care and expanding their businesses.

the evolving needs of our clients and the market, we believe we continue to be uniquely positioned to provide tremendous value and support

for our clients.

We believe there are dynamics at play that are significantly increasing market need for our products and services.

market dynamics present opportunities for us to innovate and focus on impacting the day-to-day challenges our clients face as they work

to provide excellent patient care, all while managing and expanding their businesses.

practices and health systems alike are transitioning to increasingly complex reimbursement delivery models.

As an example, the

industry has been gradually shifting from fee-for-service payments to value-based / clinical outcomes-based care payments.

transition comes in a multitude of forms including reimbursement models associated with quality incentive programs, capitation

payments models, bundled payments and at-risk payer contracts.

As an example, the industry

has been gradually shifting from fee-for-service payments to value-based/clinical outcomes-based care payments.

This transition comes

in a multitude of forms including reimbursement models associated with quality incentive programs, capitation payments models, bundled

payments, and at-risk payer contracts.

are continuing legislative and regulatory reform efforts, as well as growing compliance requirements mandated by the federal government

and other governmental agencies.

This ever-evolving regulatory landscape increases the pressure placed on healthcare organizations

to stay abreast of these changes and in compliance.

clients also have to factor in the rising cost of health insurance, changes in health benefit plan design, and the impact that

these factors have had on the increase in patient consumerism.

Patients are seeking lower cost care in response to insurance carriers

shifting more of the cost burden onto patients, causing healthcare organizations to reconsider the full patient experience.

providers now need to think more deeply about patient expectations.

This is especially true as COVID-19 has reshaped the sector

and accelerated its digital transformation.

This ever-evolving regulatory landscape increases the pressure placed on healthcare organizations to

stay abreast of these changes and in compliance.

The complexities associated with emerging reimbursement models and continued government

regulations present opportunities for us as healthcare organizations seek out partners that offer a broad range of software and services

to help meet their needs.

clients also have to factor in the rising cost of health insurance, changes in health benefit plan design, and the impact that these

factors have had on the increase in patient consumerism.

Patients are seeking lower cost care in response to insurance carriers shifting

more of the cost burden onto patients, causing healthcare organizations to reconsider the full patient experience.

Healthcare providers

now need to think more deeply about patient expectations.

This is especially true as COVID-19 has reshaped the sector and accelerated

its digital transformation.

Strategic-thinking

healthcare organizations across the country are aggressively addressing these new realities and are finding opportunities for

growth and expansion.

We see medical groups across the country and within all specialties and market segments, growing through

consolidation and investing in their businesses at an accelerated pace.

This is also leading clients to focus on delivering emerging

and disruptive care delivery settings.

Much of this change is driving executives and leaders to assess their IT and data strategy,

reevaluating what it means for the future of their organizations.

healthcare organizations across the country are aggressively addressing these new realities and are finding opportunities for growth

and expansion.

We see medical groups across the country and within all specialties and market segments, growing through consolidation

and investing in their businesses at an accelerated pace.

This is also leading clients to focus on delivering emerging and disruptive

care delivery settings.

Much of this change is driving executives and leaders to assess their IT and data strategy and reevaluate what

it means for the future of their organizations.

healthcare industry has seen tremendous change over the past decade.

Our study of the evolving needs of our clients leads us to

believe that there will be a continuing need for our services and products and emerging needs for the products and services that

we are already developing.

Our study of the evolving needs of our clients leads us to believe

that there will be a continuing need for our services and products and emerging needs for the products and services that we are already

These trends will fuel growth over the next several years.

In order for healthcare organizations to

continue to succeed, these new realities require robust solutions and careful execution.

Legacy tools that once powered these

healthcare organizations are insufficient to support their growth and long-term strategies.

Our solutions facilitate the transition

needed by these organizations to drive their future growth.

Our expansive product and services portfolio enables us to displace

competitors and gain market share.

We will continue to pursue this vast addressable market, from the small group ambulatory practices,

to large, complex enterprise medical groups and health systems across a vast array of specialties and care settings which are

focused on providing excellent care to patients across the country.

In order for healthcare organizations to continue to succeed,

these new realities require robust solutions and careful execution.

Legacy tools that once powered these healthcare organizations are

insufficient to support their growth and long-term strategies.

Our solutions facilitate the transition needed by these organizations

to drive their future growth.

Our expansive product and services portfolio enables us to displace competitors and gain market share across

a vast array of specialties, care settings and customer segments across the country.

Business Strategy

objective is to be a market leading provider of integrated, end-to-end SaaS and business services solutions to the healthcare

objective is to be a market leading provider of integrated, end-to-end SaaS and business services solutions to healthcare organizations.

Our mission is to create flexible and comprehensive products and services to help our clients with the business of medicine.

end, we invest significant resources toward improving our current offerings and building new solutions that help transform our clients’

organizations.

Our mission is to create flexible and comprehensive products and services for our client segments.

we invest significant resources in improving our current offerings and architecting a new platform that will be the backbone of

our long-term strategic initiatives.

We expect to have increased software capabilities and offer additional complementary business

services that will address the needs of the ever-changing, dynamic market conditions of the U.S.

We expect to have increased software capabilities and offer additional complementary business services that will address

the needs of the ever-changing, dynamic market conditions of the U.S.

healthcare space.

5 unchanged sentences

our solutions.

We intend to continue to enhance our solutions with new functionality and features leveraging our own teams,

partnerships and acquisitions.

We will continue to dedicate significant resources to research and development to bolster our existing

applications and drive new opportunities for innovation on behalf of our clients.

We intend to continue to enhance our solutions with new functionality and features leveraging our own teams, partnerships,

and acquisitions.

We will continue to dedicate significant resources to research and development to bolster our existing applications

and drive new opportunities for innovation on behalf of our clients.

into new categories/specialties/markets.

1 unchanged sentence

to meet the needs of the clients in our addressable market with our products and services.

This means developing new and exciting

technologies, launching new services, entering new specialties that can leverage our solutions and enable growth for our clients

or expanding into adjacent markets that we may not serve today.

This means developing new and exciting technologies,

launching new services, entering new specialties that can leverage our solutions and enabling growth for our clients or expanding into

adjacent markets that we may not serve today.

our client base.

We believe the market for our expansive value proposition is underserved, and we will continue to make

investments to capture market share.

We will invest in our sales and marketing activities, partners, and products to expand our

client footprint.

We believe the market for our expansive value proposition is underserved, and we will continue to make investments

to capture market share.

We will invest in our sales and marketing activities, partners, and products to expand our client footprint.

our relationships with existing clients.

1 unchanged sentence

by our current clients as they use our solutions.

We are also focused on converting SaaS clients into higher revenue per client

offerings such as revenue cycle management and other business services.

This expansion of services typically represents an

increase in overall revenue per client.

We are also focused on converting SaaS clients into higher revenue per client offerings

such as revenue cycle management and other business services.

This expansion of services typically represents a 3-4x increase in overall

revenue per client.

Strengthening

our client community.

We realize that our success is tied directly to our clients’

We realize that our success is tied directly to our clients’ success.

Accordingly, a substantial

2 unchanged sentences

Our unique business model includes our web-based

software and a cost-effective offshore workforce located primarily in Pakistan and Azad Jammu and Kashmir (together, the “Pakistan

Offices”).

We believe that this operating model provides us with significant cost advantages compared to other revenue cycle

management companies and it allows us to significantly reduce the operational costs of the companies we acquire.

software and a cost-effective offshore workforce located in Pakistan, Azad Jammu and Kashmir, and Sri Lanka (together, the “Offshore

We believe that this operating model provides us with significant cost advantages compared to other revenue cycle management

companies and it allows us to significantly reduce the operational costs of the companies we acquire.

acquisitions.

We intend to continue to pursue acquisitions over time.

As with most of our acquisition transactions, our

goal is to retain the acquired clients over the long-term and migrate those clients to our platforms soon after closing and cross-sell

our products and services to this newly acquired client base.

As with most of our acquisition transactions, our goal

is to retain the acquired clients over the long-term and migrate those clients to our platforms soon after closing and cross-sell our

products and services to this newly acquired client base.

A core component of our model is to strip out expensive third-party software

and vendor costs while improving efficiency and scale with our proven operational model and integration methodology.

our partner ecosystem.

We offer an integrated partner ecosystem providing healthcare organizations access to a variety

of innovative solutions that complement our suite of products and services.

Our partner ecosystem is a comprehensive collection

of apps, services, specialty solutions, and clinical connections.

This is an integral part of our vision to be the premier cloud-based

platform for healthcare.

We offer an integrated partner ecosystem providing healthcare organizations

access to a variety of innovative solutions that complement our suite of products and services.

Our partner ecosystem is a comprehensive

collection of apps, services, specialty solutions, and clinical connections.

This is an integral part of our vision to be the premier

cloud-based platform for healthcare.

the market continues to evolve, we may choose to build or partner for some or all of these solutions in order to broaden our product

In the longer term, we also envision how this will allow for frictionless flow of information and care-coordination capabilities

between medical providers and their patients.

Additionally,

given the nature of our large data repository, which is ever-growing as each patient encounter is captured, we will begin utilizing

this data to provide clinical and other process insights that will drive improvements in day-to-day workflows of our clients.

We may build or partner for some or all of these solutions as we continue to broaden our product set.

In the longer term, we also

envision how this will allow for frictionless flow of information, care-coordination capabilities between medical providers and

their patients supplanting what is today a very archaic paper, phone and fax-based infrastructure still deployed at scale in the

given the nature of our large data repository, which is ever-growing as each patient encounter is captured, opportunities exist to potentially

monetize this data in an identified manner to help improve clinical outcomes and other financial metrics.

solutions are designed to systematically drive clinical quality and patient outcomes, while streamlining staff and provider workflows

and reimbursements, to support different settings of care and healthcare models.

and reimbursements and to support different settings of care and healthcare models.

Our product and service strategy is simple:

build products and deliver solutions that meet clients where their needs are.

product and services portfolio is organized across four critical areas:

Software Products - the core systems that power medical practices across clinical, financial and patient workflows, including

our Practice Management systems, Electronic Health Records solutions and our Patient Experience Management applications.

& Business Services - software-enabled revenue cycle management offerings and other business services, such as medical

coding, credentialing, authorization management and the like.

These solutions are geared to drive patient and insurance collections

across the reimbursement life cycle.

products and deliver solutions that meet clients’ needs.

product and services portfolio is organized across six strategic areas:

Software - the core systems that power medical practices across clinical, financial, and patient workflows, including

our PM systems, EHR solutions and our PXM applications or customized purpose-built applications.

Technology-enabled

Services - software-enabled RCM offerings and other business services, such as medical coding, credentialing, authorization

management and the like are geared towards driving patient and insurance collections across the reimbursement life cycle.

Apps and App Ecosystem Partners - additional proprietary software products, including our business intelligence platform,

robotic process automation bots, telemedicine applications, mobile apps and more of those applications that consume our APIs or

other interfaces built by the market at large.

Workforce (MTBC Force) - leveraging our unique resources, and in turn selling this capacity at scale directly to partners

and clients at a reduced rate as compared to other competitors in the same space.

robotic process automation bots, CareCloud Conductor, our interoperability and data transformation suite, telemedicine applications,

mobile apps and more of those applications that consume our APIs or other interfaces built by the market at large.

Healthcare IT Consulting & Staffing (medSR) - an extensive set of services including EHR vendor-agnostic optimization

and activation, project management, IT transformation consulting, process improvement, training, education, and staffing for large healthcare

organizations including health systems and hospitals.

Workforce (CareCloud Force) - leveraging our unique resources, and in turn selling this capacity at scale directly to

partners and clients at a reduced rate as compared to other competitors in the same space.

These on-demand workforce capabilities include

offshore engineering capacity for development and offshore revenue cycle management operations personnel.

categorization approach allows us to be both methodical and nimble across medical specialties and market segments while providing

us a framework to create solution sets for the market today and, more importantly, for what our clients will need tomorrow.

offshore engineering capacity for development and offshore RCM operations personnel.

Business Services - additional services in support of our wide-ranging client base.

These include medical

practice management services to a select group of medical practices, a group purchasing organization with negotiated discounts with pharmaceutical

manufactures containing more than 4,000 physician and mid-level provider members and other ancillary services.

categorization approach allows us to be both methodical and nimble across the healthcare organizations and market segments we serve while

providing us a framework to create solution sets for the market today and more importantly, for what our clients will need tomorrow.

believe that our fully integrated solutions uniquely address the challenges in the industry.

Our solutions are designed to simplify

the complexities inherent in the claim reimbursement process and thereby deliver objectively superior results, such as reduced

claim denial rates, improved client days in accounts receivable, reduced patient no-shows, increased well visit encounters and

reimbursements.

fully integrated suite of technology and business service solutions is designed to enable healthcare practices to thrive in the

midst of a rapidly changing environment in which managing reimbursements, clinical workflows and day-to-day administrative tasks

is becoming increasingly complex, costly and time-consuming.

Moreover, in most cases the standard fee for our complete, integrated,

end-to-end solution is based upon a percentage of a practice’s healthcare-related revenues, with a monthly minimum fee,

plus a nominal one-time setup fee, and is competitively priced.

Business Services

Purchasing Organization.

MTBC’s group purchasing organization (GPO) is a trusted partner to more than 4,000 physician

and mid-level provider members.

Our GPO includes our negotiation of discounts with pharmaceutical manufacturers, along with other

products and services that can benefit a medical practice.

In most cases the standard fee for our complete,

integrated, end-to-end solution is based upon a percentage of each client’s healthcare-related revenues, with a monthly minimum

fee, plus a nominal one-time setup fee, which is competitively priced.

and Development

research and development focus is on enhancing and expanding our service offerings while ensuring all offerings meet regulatory

compliance standards.

We continually update our software and technology infrastructures, regularly execute releases of new software

enhancements and adapt our offerings to better serve our medical group and health system clients confronting rapid changes in

the healthcare market space.

agile software development life cycle methodology is designed to ensure that each software release is properly designed, built,

tested, and released.

Our product, engineering, quality assurance and DevOps teams are located both onshore and offshore.

We complement

our internal efforts with services from third-party technology providers for infrastructure, healthcare ecosystem connectivity

needs such as labs and prescriptions, or specific application requirements.

research and development focuses are on enhancing and expanding our service offerings while ensuring all offerings meet regulatory compliance

We continually update our software and technology infrastructures, regularly execute releases of new software enhancements,

and adapt our offerings to better serve our medical group and health system clients confronting rapid changes in the healthcare market

agile software development methodology is designed to ensure that each software release is properly designed, built, tested, and released.

Our product, engineering, quality assurance and development operations teams are located both onshore and offshore.

We complement our

internal efforts with services from third-party technology providers for infrastructure, healthcare ecosystem connectivity needs such

as prescriptions, clinical laboratories, or specific application requirements.

also employ product management, user experience and product marketing personnel who work continually on improvements to our products

and services design.

estimate that as of December 31, 2020, we provided services to approximately 40,000 providers (which we define as physicians,

nurses, nurse practitioners, therapists, physician assistants and other clinicians that render bills for their services) practicing

in approximately 2,600 independent medical practices and hospitals, representing 80 specialties and subspecialties in 50 states.

addition, we served approximately 200 clients that are not medical practices, but are primarily service organizations who serve

the healthcare community.

The foregoing numbers include clients leveraging any of our products or services, and are based in part

upon estimates where the precise number of practices or providers is unknown.

estimate that as of December 31, 2021, we provided software and services to approximately 40,000 providers (which we define as physicians,

nurses, nurse practitioners, therapists, physician assistants and other clinicians that render bills for their services) practicing in

approximately 2,600 independent medical practices and hospitals, representing 80 specialties and

subspecialties in 50 states allowing for significantly low revenue concentration risk.

addition, we served approximately 200 clients that are not medical practices, but are primarily service organizations who serve the healthcare

The foregoing numbers include clients leveraging any of our products or services and are based in part upon estimates where

the precise number of practices or providers is unknown.

service clients ranging from small practices to large groups and health systems.

Our clients span from the single doctor independent

medical practice to a large 2,200 provider of physical, occupational and speech therapy services organization located across multiple

states, and a large major academic medical institution with a service area covering millions of patients.

medical practices to large medical groups, including an enterprise specialty-specific healthcare organization with more

than 2,300 providers located across multiple states.

We also service large major academic medical

institutions, small and large hospitals and health systems with service areas covering millions of patients.

and Marketing

have developed sales and marketing capabilities aimed at driving growth in our client base, including small medical practices,

large groups, and health systems.

We expect to expand by selling our complete suite of services to new clients and up-selling

additional services into our existing client base.

We have a direct sales force, which we augment through our MTBC Force deals

and partner initiatives and marketing campaigns.

have developed sales and marketing capabilities aimed at driving growth of our client base, including small medical practices, large

groups, and health systems.

We expect to expand by selling our complete suite of software and services to new clients and up-selling

additional solutions into our existing client base.

We have a direct sales force including team members focused on areas such as

our CareCloud Force and medSR deals.

In addition, our direct sales are augmented through our partner initiatives and

marketing campaigns.

Growth Levers

believe that we are in a great position to grow by executing across several growth vectors:

believe that we are in a great position to continue to grow by leveraging a multi-faceted growth strategy:

Growth and Direct Sales

have organized our sales force into different segments for sales of all of our products and services in order to best address

our clients’

have organized our sales force into different segments for sales of all of our products and services in order to best address our clients’

needs and our markets.

With this design, our sales team can address a client’s specific needs, whether

a new client is seeking our products or services for the first time, or a current client in need of additional solutions.

marketing team operates in support of our sales force and provides specialized demand generation capabilities for product marketing

and sales efforts.

Our sales approach is consultative in nature for most of our offerings, which generally includes needs analysis

for prospective clients, crafting service proposals, and negotiating contracts that culminates in the commencement of services.

Partnerships.

In addition to our direct sales force, we maintain business relationships with third parties that utilize, promote or

support our sales or services within specific industries or geographic regions.

Some of these partners are customers through MTBC

Force and others are more traditional channel partners who help promote our solutions.

We believe we can further accelerate organic

growth through industry participants, whereby we utilize them as channel partners to offer integrated solutions to their clients.

We have entered into such arrangements with industry participants, and from which we began to derive revenue from them starting

We have developed application interfaces with numerous EHR systems, together with device and lab integration to support

these relationships.

Acquisitions.

The Healthcare IT service industry is highly fragmented, with many local and regional RCM companies serving small medical

practices and hospitals.

We believe that the industry is ripe for consolidation and that we can achieve significant growth through

acquisitions.

We further believe that it is becoming increasingly difficult for traditional RCM companies, together with a variety

of other healthcare industry vendors and healthcare IT companies, to meet the growing technology and business service needs of

healthcare providers without a significant investment in an information technology infrastructure and the utilization of a talented,

cost-efficient global team.

Since the Company went public in July 2014, we have completed 16 transactions, acquiring complementary

assets to grow our business.

We typically leverage our technology and our cost-effective offshore team to quickly deliver additional

value to the newly acquired customer base, while reducing costs.

Often, we will incur initial costs associated with the integration

of the acquired business with our existing operations, but this early investment is designed to increase customer satisfaction

and retention, while laying the foundation for long-term accretion.

market for practice management, EHR and RCM solutions and related services is highly competitive, and we expect competition to

increase in the future.

We face competition from other providers of both integrated and stand-alone practice management, EHR and

RCM solutions, including competitors who utilize a web-based platform and providers of locally installed software systems.

With this design, our sales team can address a client’s specific needs, whether a new client is seeking

our products or services for the first time, or a current client is in need of additional solutions.

marketing team operates in support of our salesforce and provides specialized demand generation capabilities for sales efforts

and product marketing for sales efforts.

Our sales approach is consultative in nature for most of our offerings, which generally includes

an analysis based on a prospective client’s needs, crafting service proposals, and negotiating contracts that culminate in the

commencement of services.

go-to-market strategy is designed to meet our customers’ needs.

Our vast array of products and services allow us to craft solutions

that can meet our customers’ unique needs within a specific product category, client segment, or both.

Our latest go-to-market

strategy takes this dynamic into account:

through Partnerships

addition to our direct sales force, we maintain business relationships with third parties that utilize, promote, or support our sales

or services within specific industries or geographic regions.

Some of these partners are customers through CareCloud Force and others

are more traditional channel partners who help promote our solutions.

We believe we can further accelerate organic growth through industry

participants, whereby we utilize them as channel partners to offer integrated solutions to their clients.

We have entered into such engagements

with industry participants, and from which we began to derive revenue starting in mid-2014.

We have developed application interfaces

with numerous EHR systems, together with device and lab integration to support these relationships.

through Acquisitions

Healthcare IT service industry is highly fragmented, with many local and regional RCM companies serving small medical practices and hospitals.

We believe that the industry is ripe for consolidation and that we can achieve significant growth through acquisitions.

We further believe

that it is becoming increasingly difficult for traditional RCM companies, together with a variety of other healthcare industry vendors

and healthcare IT companies, to meet the growing technology and business service needs of healthcare providers without a significant

investment in an information technology infrastructure and the utilization of a talented, cost-efficient global team.

Since the Company

went public in July 2014, we have completed 17 transactions, acquiring complementary assets to grow our business.

We typically leverage

our technology and our cost-effective offshore team to quickly deliver additional value to the newly acquired customer base, while reducing

Often, we will incur initial costs associated with the integration of the acquired business with our existing operations, but

this early investment is designed to increase customer satisfaction and retention, while laying the foundation for long-term accretion.

market for practice management, EHR and RCM solutions and related services is highly competitive, and we expect competition to increase

in the future.

We face competition from other providers of both integrated and stand-alone practice management, EHR and RCM solutions,

including competitors who utilize a web-based platform and providers of locally installed software systems.

of our competitors have longer operating histories, greater brand recognition and greater financial marketing.

We also compete

with various regional RCM companies, some of which may continue to consolidate and expand into broader markets.

We expect that

competition will continue to increase as a result of incentives provided by various governmental initiatives, and consolidation

in both the information technology and healthcare industries.

In addition, our competitive edge could be diminished or completely

lost if our competition develops similar offshore operations in Pakistan or other countries, such as India and the Philippines,

where labor costs are lower than those in the U.S.

We also compete with various

regional RCM companies, some of which may continue to consolidate and expand into broader markets.

We expect that competition will continue

to increase as a result of incentives provided by various governmental initiatives, and consolidation in both the information technology

and healthcare industries.

In addition, our competitive edge could be diminished or completely lost if our competition develops similar

offshore operations in Pakistan or other countries, such as India and the Philippines, where labor costs are lower than those in the

(although higher than in Pakistan).

Pricing pressures could negatively impact

our margins, growth rate and market share.

believe we have a competitive advantage, as we are able to deliver our industry-leading solutions at competitive prices because

we leverage a combination of our proprietary software, which automates our workflows and increases efficiency, together with a

global team that includes more than 600 experienced health industry experts onshore.

These experts are supported by our highly

educated and specialized offshore workforce of approximately 3,100 team members at labor costs that we believe are approximately

one-tenth the cost of comparable U.S.

unique business model has allowed us to become a leading consolidator in our industry sector, gaining us a reputation for acquiring

and positively transforming distressed competitors into profitable operations of MTBC.

the employees of our subsidiaries, as of December 2020, the Company employed approximately 3,700 people worldwide on a full-time

Pricing pressures could negatively impact our margins, growth rate and market share.

believe we have a competitive advantage, as we are able to deliver our industry-leading solutions at competitive prices because we leverage

a combination of our proprietary software, which automates our workflows and increases efficiency, together with a global team that includes

more than 600 experienced health industry experts onshore.

These experts are supported by our highly educated and specialized

offshore workforce of approximately 3,400 team members at labor costs that we believe are approximately one-tenth the cost of comparable

unique business model has allowed us to become a leading consolidator in our industry sector, gaining us a reputation for acquiring and

positively transforming distressed competitors into profitable operations of CareCloud.

the employees of our subsidiaries, as of December 2021, the Company employed approximately 4,100 people worldwide on a full-time basis.

We also utilize the services of a small number of part time employees.

In addition, all officers of the Company work on

a full-time basis.

Over the next twelve months, we anticipate increasing our total number of employees only if our revenues increase,

our operating requirements warrant such hiring, or we are hiring for specific functions where we place additional emphasis, such

as marketing and sales.

In addition, all officers of the Company work on a full-time basis.

Over the next twelve months, we anticipate increasing our total number of employees only if our revenues increase, our operating requirements

warrant such hiring, or we are hiring for specific functions where we place additional emphasis, such as marketing and sales.

Rights of Our Directors, Executive Officers, and Principal Stockholders

of December 31, 2020, approximately 40% of both the shares of our common stock and voting power of our common stock are held by

our directors and executive officers.

Therefore, they have the ability to control the outcome of matters submitted to our stockholders

for approval, including the election of our directors, as well as the overall management and direction of our Company.

were incorporated in Delaware on September 28, 2001 under the name Medical Transcription Billing, Corp., and legally changed our

name to MTBC, Inc.

on February 6, 2019.

Our principal executive offices are located at 7 Clyde Road, Somerset, New Jersey 08873,

and our telephone number is (732) 873-5133.

Our website address is www.mtbc.com.

Information contained on, or that can be accessed

through, our website is not incorporated by reference into this Annual Report on Form 10-K, and you should not consider information

on our website to be part of this document.

MTBC.com, A Unique Healthcare IT Company, CareCloud and other trademarks and service marks of MTBC appearing in this Annual Report

on Form 10-K are the property of MTBC.

Trade names, trademarks and service marks of other companies appearing in this Annual Report

on Form 10-K are the property of their respective holders.

were an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act until December

As a smaller reporting company and a non-accelerated filer, we may take advantage of specified reduced reporting requirements

and are relieved of certain other significant requirements that are otherwise generally applicable to public companies, including

not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended,

reduced disclosure obligations regarding executive compensation in our Annual Report, periodic reports and proxy statements and

providing only two years of audited financial statements in our Annual Report and our periodic reports.

of December 31, 2021, approximately 35% of both the shares of our common stock and voting power of our common stock are held by our directors

and executive officers.

Therefore, they have the ability to control the outcome of matters submitted to our stockholders for approval,

including the election of our directors, as well as the overall management and direction of our Company.

were incorporated in Delaware on September 28, 2001, under the name Medical Transcription Billing, Corp., and legally changed our name

to MTBC, Inc.

in February 2019.

On March 29, 2021, we legally changed the name of the Company to CareCloud, Inc.

Our principal executive

offices are located at 7 Clyde Road, Somerset, New Jersey 08873, and our telephone number is (732) 873-5133.

Our website address is www.CareCloud.com.

Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form

10-K, and you should not consider information on our website to be part of this document.

CareCloud.com, A Unique Healthcare IT Company, CareCloud and other trademarks and service marks of CareCloud appearing in this Annual

Report on Form 10-K are the property of CareCloud.

Trade names, trademarks and service marks of other companies appearing in this Annual

Report on Form 10-K are the property of their respective holders.

are a smaller reporting company.

As a smaller reporting company, we may take advantage of specified reduced reporting requirements and

are relieved of certain other significant requirements that are otherwise generally applicable to public companies.

As a smaller reporting

company, we have reduced disclosure obligations regarding executive compensation in our Annual Report, periodic reports and proxy statements

and providing only two years of audited financial statements in our Annual Report and our periodic reports.

This year the Company is

required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended.

with this Form 10-K, the Company is now an accelerated filer.

You Can Find More Information

website, which we use to communicate important business information, can be accessed at:

www.mtbc.com.

www.carecloud.com.

We make our Annual Reports

on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports available free of

charge on or through our website as soon as reasonably practicable after such material is electronically filed with or furnished

to the Securities and Exchange Commission (“SEC”).

Materials we file with or furnish to the SEC may also be read and

copied at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C.

Information on the operation of the

Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330.

Also, the SEC Internet website (www.sec.gov) contains

reports, proxy and information statements, and other information that we file electronically with the SEC.

on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports available free of charge

on or through our website as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities

and Exchange Commission (“SEC”).

Materials we file with or furnish to the SEC may also be read and copied at the SEC’s

Public Reference Room at 100 F Street, NE, Washington, D.C.

Information on the operation of the Public Reference Room may be obtained

by calling the SEC at 1-800-SEC-0330.

Also, the SEC’s website (www.sec.gov) contains reports, proxy and information

statements, and other information that we file electronically with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business