Medworxx Solutions Inc. Corporate Overview February 2015

Transcription

1 Medworxx Solutions Inc. Corporate Overview February 2015

2 Forward Looking Statement This presentation contains forward-looking statements, which can be identified by the use of the forward-looking terminology, such as may, intend, will, expect, anticipate, estimate, seek, or continue or the negative thereof or other variations thereon or comparable terminology. In particular, any statements, express or implied, concerning trends, future operating results, growth, performance, business prospects and opportunities or the ability to generate revenues, income or cash flow are forward-looking statements. These statements reflect management s current beliefs, including beliefs as to future financial and operating results, and they are based on information currently available to management. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to known and unknown risks and uncertainties. Such risks include but are not limited to: the impact of general economic conditions, market volatility, fluctuations in costs, and changes to the competitive environment, as well as other risks disclosed in the public filings of Medworxx Solutions Inc. ( Medworxx ) which can be found at These factors should be considered carefully and undue reliance should not be placed on forwardlooking statements. Although the forward-looking statements are based upon what management believes to be reasonable estimates and assumptions, Medworxx cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements. Unless specifically required by law, Medworxx does not assume any obligation to update or revise these forward-looking statements to reflect new events or circumstances. 2

3 Medworxx :: Corporate Overview Medworxx Solutions Inc. founded in 2004 Toronto-based Hospital Patient Flow Software Provider Multi-year, Recurring per-bed revenue model Strong capital position to execute international growth strategy in 2014/2015 Shares Outstanding (as at 2014/09/30) 27.3M Market Cap ($0.37 share price at 2014/09/30) $ 10.1M Net Cash (as at 2014/09/30) $ 1.5M 2014 Revenue (at 2014/09/30) $ 4.4M Institutional Ownership 50% 3

4 Medworxx :: Highlights Medworxx Patient Flow aids hospitals to reduce spending and increase patient throughput; thereby optimizing hospitals utility and maximizing ROI Large near-term opportunities in Canada, US, UK, Australia, and France representing over 1,670,000 hospital beds and a $351 M annual revenue opportunity Goal of becoming the de facto standard in hospital patient flow solutions Currently 46% of Canadian acute-care beds under license* Scalable growth with high-margin target markets Intellectual property fully developed with limited capex requirements Legacy Compliance & Education product suite generates consistent cash flow *Excluding Quebec 4

5 Medworxx :: IT Solutions Compliance & Education Launched in 2005 Patient Flow Platform Launched in 2008 Learning Management Policies & Documents across >350 hospitals in 5 countries 5

6 Medworxx :: Corporate history The company started in 2005 with a focus on the Compliance and Education (C & E) market. The Medworxx e-learning solution was launched along with a document management system focused on policies and procedure management Today, there are over 200 organizations (including hospitals) using the C & E platform. The Medworxx C&E platform is the leading industry solution in Canada with a customer presence in the United States and Australia. In 2008 Medworxx entered the Patient Flow space with the purchase of the Continuum patient flow software solution. Continuum began in the 1990 s as a paper methodology to bring clinical utilization review to the Canadian market. Medworxx renamed the solution Clinical Criteria. Clinical Criteria developed into the flagship of the patient flow platform. Medworxx Clinical Criteria methodology combines evidence based clinical criteria sets with a powerful technology workflow engine and robust data analytics. Quickly the Canadian marketplace adopted the solution with 46% of all hospitals in Canada (excluding Quebec) using the solution. Medworxx added additional modules to create a fully functional patient flow platform. Modules include; Clinical Criteria, Bed Management, Forms and Assessments, and Housekeeping and Portering. In 2011 Medworxx expanded into the UK marketplace and in 2014 Medworxx expanded into the United States, France and Australia. Medworxx has effectively demonstrated the solution is applicable internationally. 2013: International roll-out of the Medworxx Patient Throughput Review continues to provide participating hospitals with insightful diagnostic analytics. In 2014 the first operational use conversion contact is signed in France. 6

7 Inefficient Patient Flow :: Higher Costs $900B annually in hospital care in North America $49,500 loss per bed, per year due to inefficient patient flow* $1,100 average cost of a hospital bed per day 45 average days lost per bed per year due to inefficiencies *The Advisory Board 7

8 Global Patient Flow Challenges 8

9 Medworxx Unique Intellectual Property Over 20 years of Analytics Expertise Challenge Solution Result Root of patient flow challenge -- too much variability in patients state and care Reduce variability with daily clinical assessments -- under 3 minutes per patient Less system-wide drag -- Fewer inefficiencies Clinical Assessments 9

10 Medworxx :: Patient Flow Platform Forms & Assessments Clinical Criteria Bed Management Independent patient assessment form Core framework established Flexible dynamic enables institution configuration Monitors patient stay based on clinical assessment Real-time Improves discharge rates Efficient bed management tool Real-time clinical status Optimizes resource use Identify Delay Hotspots Maximize Existing Beds 10

11 Integrated Patient Flow Platform Forms & Assessments (Custom Risk Assessments) Clinical Criteria (9 Criteria Sets: Acute, Community Care & Virtual Wards) Bed Management (Includes Housekeeping & Portering) HL7 Interface (PAS) Patient Flow Platform Analytics Engine Integrates data to provide Management, Operational and Strategic Reports and Dashboards Data Extract (ETL) 11

12 Patient Flow :: Results Medworxx has helped us identify process and communication issues to improve the planning and teamwork related to complex patient discharges. Patti Cochrane VP, Patient Services & Quality and CNO Reduced Alternate Level of Care (ALC) beds percentages from: +18% to 5.9% Reduced medical unit ALC days from Medworxx needs to be melted into every component of your organization. Diane Muscat Manager, Patient Flow & Clinical Utilization 15.5 to 11.6 More patients never having an RFD associated with their stay means more timely discharges and a better flow of patients. Jane Casey Director, Medicine Programs Increased percentage of acute-care patients given an Estimated Discharge Date (EDD): 15% to 89% 12

13 Patient Flow Addressable Market :: Near-term Potential Annual Opportunity Total Hospital Beds Medworxx Licensed Beds PTR Engagement Canada US UK France Australia $15M $200M $34M $85M $17M 79, , , ,000 82,850 25,495-3,

14 Medworxx Market Coverage 29,255 Total number of beds licensed on Medworxx worldwide 46%* Acute-care beds in Canada using Medworxx Patient Flow Platform *Excluding Quebec 11% Acute-care beds in Canada licensed on Medworxx Bed Management Module Provincial & Regional Authorities Alberta Health Services Fraser Health Authority; Vancouver Coastal Health Authority, BC The Province of New Brunswick The Province of Nova Scotia Winnipeg Regional Health Authority, MB Erie St. Clair LHIN, ON 14

15 Patient Throughput Review Medworxx partners with Consulting Firms to help consultants collect client specific data around the patient throughput process. The Patient Throughput Review captures client data and highlights areas which impede the patient flow process from admissions to discharge. Consultants use this data to quantify the financial and clinical impact of patient delays. Medworxx Consulting Partner Client Specialized Data Collection and Insightful Analytics Performance Improvement Expertise Actionable Solutions 15

16 Utilizing Patient Throughput Review Implementing Medworxx Patient Flow Software Direct & Indirect Distribution Model Direct Medworxx sales and/or Indirect consulting partner distribution Patient Throughput Review: an in-depth diagnostic exercise - Leveraging the capability of the data from the Medworxx patient flow software 16

17 44 PTRs in 5 Countries To Date (12/23/2014) Country Reviews Conducted by Medworxx Reviews Conducted by Consulting Partner Total Reviews UK Canada 9-9 Australia France US Total

18 Medworxx::Year End Financials 18

19 Focus on High Growth Patient Flow Opportunities 19

20 Recurring Revenue :: Business Model (9/30/2014) Recurring revenue 81 % 19 % Maintenance and Hosting fees Annual Renewable Software Licenses Non-recurring revenue Perpetual Software Licenses Consulting Services Annual Renewable Licenses 49% Consulting Services 13% Maintenance & Hosting 32% Perpetual Licenses 6% 20

21 Enterprise Valuation :: Comparison (ttm) Corporation Stock Symbol/Exchange Enterprise Value/Revenue* Medworxx Inc. TSXV:MWX 1.18 Cerner Corporation Nasdaq: CERN 6.06 Authentdate Holdings Corp. Nasdaq: ADAT 5.71 Computer Programs & Systems Inc. Nasdaq: CPSI 3.33 MedAssets, Inc. Nasdaq: MDAS 3.24 Medidata Solutions Inc. Nasdaq: MDSO 8.87 Merge Healthcare Inc. Nasdaq: MRGE 1.92 Quality Systems Inc. Nasdaq: QSII 1.96 Streamline Health Solutions Inc. Nasdaq: STRM 2.92 WebMD Health Corp. Nasdaq: WBMD 3.11 Syslogist Ltd. TSXV: SYZ.V Constellation Software Inc. Toronto: CSU.TO 4.96 *Enterprise Value/ Revenue is calculated as the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. 21

22 Medworxx :: Leadership Board of Directors George Elliott, Chairman of the Board - Director, executive, advisor on long-term financial strategies to numerous public companies Dan Matlow, Director - President & CEO, Medworxx Paul Collins, Director - President & CEO at St. Thomas Elgin General Hospital Steve Garrington, Director - Vice President International at InterSystems Har Grover, Director - Founder and Managing Director of Nucleus GC Lee Matheson, Director - Co-founder of Broadview Capital Management Inc. Barry Tissenbaum, Director - Independent consultant; former Senior Partner with Ernst & Young Bernard Webber, Director years with Ontario Public Service; former member, Board of Governors of the Information Technology Association of Canada (ITAC) 22

23 Medworxx :: Leadership Advisory Committee Dr. Myrna Francis - Advisor to MaRS Discovery District, former President and CEO of Canada Health Infoway and former VP, Global Healthcare Industry for CGI Frances Pennell - Consultant and former Partner with PricewaterhouseCoopers (PwC) USA Sam Marafioti - Vice President of Corporate Strategy and Development, CIO at Sunnybrook Health Sciences Centre, Toronto Renah Persofsky - The Portable Executive; founder and former President & CEO of Dexit Incorporated 23

24 Medworxx :: Leadership Executive Team Dan Matlow, President & CEO years experience in software sales, consulting, and development; Former VP of Healthcare Services Open Text; helped grow Corechange from $0 - $27M revenue with 70+ hospital customers in North America Peter Ellis, UK Managing Director - 40 years of international management and consulting experience including leadership roles within the UK National Health Service (NHS), former President and CEO of Sunnybrook Health Science Centre, ON and Senior Partner at Ernst & Young Brian Goffenberg, CPA, CA, CFO & Executive Vice President years experience in international financial management at Philips Lifeline, DWL and Delrina (now Symantec); emphasis on IT market Niels Tofting, Senior VP Sales years experience in sales and sales management at Corechange and Open Text; top sales performer; emphasis on the healthcare market Lori Frampton, MHS, RN, VP Patient Flow Process Improvement and Data Analysis years in senior healthcare management at Health Quality Ontario, Royal Victoria Hospital, Ontario MOHLTC, Certified Lean/Six Sigma Black Belt Larry Vanier, VP Decision Support & Healthcare Processes years in healthcare IT; former principal at Continuum, focused on product development, sales and support Joel Alfane, VP Development & Services years in software development and implementations; former Director, Learning Development, Longview Solutions Andre Vandenberk, VP Product Management years in information technology and an original founder of Medworxx Nadine Brown, Marketing Director years marketing communications; former National Healthcare Communications Lead with Siemens Canada 24

25 Medworxx Solutions Inc. Dan Matlow, President & CEO x311 Brian Goffenberg, Chief Financial Officer & EVP x315