INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION Improving healthcare one bit at a time M. CHRISTIAN ARMSRONG, MD MHSA / CEO

2 Important Points Company & Mission Team Problem Market Size Solution Business Model Technology Competitors Marketing Plan Financing

3 Company and Mission SNFWare Technologies Our vision is to be the leader in Skilled Nursing Facility and provider software. Our Mission: To provide exceptional software for the doctors and facilities that treat the 1.3 million, largely overlooked, patients that are currently in skilled and long-term nursing facilities The Pain: Small niche market Its not glamorous You get rich doing something no one else wants to do. Peter Sterling King of the Hill Business Is Picking Up

4 Current Team Idea Guy M. Christian Armstrong, MD MHSA / Founder Medical Doctorate/Masters of Health Administration 15+ years in technology related fields Nearly 10 years in healthcare Tech Guru Abram Cookson / Co-founder Process Improvement Coach Multiple Technologies and Architecture Over 14 years of software development experience

5 Future Team Key Rolls we still need to fill: Business Development this role will focus on developing key relationships with pharmaceutical and research companies interested in the data we collect. Marketing this role will focus on marketing and brand development. Sales this role will focus on leading our direct sales team, managing sales territory divisions, and ensuring that we meet our sales goals and future growth.

6 Problem Divided Space Ambulatory (Outpatient) Long-term / Post-acute care (LTPAC) Very Few Facility Systems 6 certified / 2 recently added No known LTPAC provider systems Growing market segment Hospital (Inpatient) Crowded Space 750+ vendors Outpatient Focused Relationships Retail Pharmacy Limited Data Access Outpatient Features Patient sorted by address Long-term and Post-acute care Expensive Duke University paid $700 million for Epic Major hardware needs Multiple smaller systems Home Hospital

7 The SNFWare Solution Help providers (doctors and nurse practitioners) be more productive We minimized non-billable work for providers (i.e. excess phone calls) We automate repetitive work (i.e. billing) Outside Data Source (i.e. Hospital) SNFList Streamline patient data entry Automate patient record collection SNFCharts data ProviderRx

8 The Old Way New Patient Onboarding Discharges patient to SNF Sends paper record Hospital SNF - Admissions Receives paper record Assigns Provider Notifies Nursing Reviews Orders Verbally review orders with Provider SNF Nursing Provider Verifies hospital orders by phone (can be 10+ min phone call) Provider reads and manually enters paper data into EMR Patient Visit - Early Patient Visit Mid Provider examines patient Provider documents encounter repeating much of the information entered earlier Patient Visit Late

9 The Old Way Problems Discharges patient to SNF Sends paper record Hospital SNF - Admissions Receives paper record Assigns Provider Notifies Nursing Reviews Orders Verbally review orders with Provider SNF Nursing Provider Verifies hospital orders by phone (can be 10+ min phone call) Provider reads and manually enters paper data into EMR Patient Visit - Early Patient Visit Mid Provider examines patient Provider documents encounter repeating much of the information entered earlier Patient Visit Late Paper records antiquated Sets the stage for inefficiency Provider assignments arbitrary Provider notification inconsistent Time consuming and unnecessary Increased medical errors. Redundant data entry

10 The SNFWare Way Discharges patient to SNF Hospital SNF - Admissions Received new patient information Notified of new patient Verifies orders Provider SNF Nursing Notified of new patient (orders already approved) Data imported from hospital or Health Exchange Patient Visit - Early Patient Visit Mid Provider examines patient Provider documents encounter Patient Visit Late More efficient Provider assignment automated Phone calls eliminated Decreased medical errors Minimized data entry Eliminated redundant data entry

11 The SNFWare Way In action Facility received new patient and submits request to provider Provider accepts the new patient (automated) System initiates HIE query or facility submits data

12 The SNFWare Way In action New patient clearly identified Documents imported directly into chart

13 The SNFWare Way In action Chart automatically created Patient demographic information automatically entered

14 The SNFWare Way In action Patient diagnosis information automatically entered Past Medical History automatically entered from hospital or HIE records

15 The SNFWare - Robust Practice Management Chart automatically created Patient demographic information automatically entered

16 Market Size In the early 2010s, more than $178 billion was spent on nursing home care annually.* $22.5 billion paid to eligible providers between 2011 and 2022** 1.3 Million LTPAC patients 15,000+ LTPAC facilities 30,000 LTPAC providers Population Change 40% 35% 30% 25% 22% 20% 21%21%21%21%21% 19%20% 17% 15% 15% 10% In 2010, 35 million Americans 5% were over the age of 65, a 0% 850,000 Medicare/Medicaid Eligible Providers number that was expected to increase to 20 percent of the population by 2020, with 6.6 million people residing in nursing homes by < vs. 1.3 million today * ** Levingston, S. A. (2012). Opportunities in physician electronic health records: A road map for vendors. Bloomberg Government. 65+

17 Business Model SNFList Provider Rounding Application Free for users Ad revenue for SNF Targeted users Provider, Nurses, Clinical staff Est. $ /Month/Facility at $12-15 CPM (tiered based on user) ProviderRx SNF Provider Specific EMR Premium EMR/Practice management software $ /User/Month SNFCharts Facility Clinical Management Solution Free for facility/users Ad revenue for SNF Targeted users Est. $ /Month/Facility Cost Savings Income 1-5% of purchases

18 Direct Competitors 1. Status quo - Providers in this space have had to make due with what was available (i.e. pen/paper, Practice Fusion*) Our alternative to the status quo = see more patients in the same amount of time. Work Day 8 hrs 480 min Time Spent per Patient 20 Patients seen per day 24 (480/20) Time Saved with ProviderRx * Although not a direct competitor, many SNF providers use it because it is free. Our comparison is based on performance number from Practice Fusion. 3 min/pt Addition time per day 72min (24*3) Additional pts seen 3 patients Average Income/patient $ Daily Income Increase $ Work Month 20 days Monthly Income Increase $6, ProviderRx cost/provider ($1,000.00) Net Monthly income increase $5,000.00

19 Indirect Competitors ambulatory EMR systems (Inefficient in SNF practice) 1. Practice Fusion 2. Greenway 2. Inpatient EMR (Expensive) 1. Epic 2. GE Healthcare Centricity 3. SNF Facility Systems (Lacks Provider EMR) 1. Point Click Care 2. AchieveMatrix 3. Vision

20 Quality Market Landscape Low High Expensive Economical Discounted

21 Feature List Competition Company SNFWare SNF Focused Ambulatory Inpatient e- prescribing CPOE Integrated Messaging Automated Document Submission Total 7 Practice Fusion 3 Greenway 3 EpicCare Inpatient System 2 Point Click Care 3

22 Competitive Advantages 1. Current Competitive Advantage: 1. New to market 2. Unique concept of multi-system approach 3. FREE facility product Competitors Competitive Advantage - Name/Reputation - Existing SNF market share 2. Sustainable Competitive Advantage: 1. Market lead 2. Hidden income streams - Existing ambulatory market share 3. Unfair Competitive Advantage: 1. In exchange for our FREE facility EMR (SNFCharts), providers use the provider EMR (ProviderRx) to streamline workflow - FREE

23 Marketing Approach / Strategy 1. Direct Marketing to SNF Providers: 1. Proprietary database of providers 2. Word of mouth (small community) 3. Existing customer referral fees 4. Internal product referrals (i.e. SNFChart ProviderRx) 5. Generate SEO traffic 2. Continuing Medical Education: 1. Target: Geriatrics, Internal Medicine, Family Practice 3. Trade Shows: 1. The American Geriatrics Society 2. National Gerontological Nursing Association 3. National Association of Professional Geriatric Care Managers 4. Geriatric Care Conference

24 Marketing Approach / Strategy 4. Average Cost to Acquire a Customer: Customer Acquisition Costs = First 24 Months ProviderRx SNFCharts New Customers/Month Website Dev Costs $ 7, $ 7, Website Life (months) Monthly Promotion Costs $ 4, $ 6, Monthly Maintenance Costs $ 1, $ 1, Cost of Acqusition $ $

25 Marketing Approach / Strategy 5. Expected Monthly Average Revenue Per User (ARPU): Service Line Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 ProviderRx $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, SNFList $ $ $ $ $ $ SNFCharts $ - $ 1, $ 1, $ 1, $ 1, $ 1, Total (ARPU) $ $ $ $ $ $ Life-time Value of Customer: Service Line Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 ProviderRx $7, $16, $26, $37, $48, $58, SNFList $ $ $ $ $1, $1, SNFCharts $9, $19, $29, $39, $49, $57,648.39

26 Financial Projections 1. Income Projections: Service Line Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 ProviderRx $ 319, $ 2,696, $ 6,291, $ 10,272, $ 14,304, $ 18,336, SNFList $ - $ 495, $ 4,200, $ 8,520, $ 12,840, $ 17,160, SNFCharts $ 5, $ 217, $ 1,560, $ 3,122, $ 4,684, $ 6,247, Consumable Sales $ - $ 696, $ 5,911, $ 11,992, $ 18,073, $ 24,154, Total Income $ 324, $ 4,105, $ 17,963, $ 33,906, $ 49,902, $ 65,897,758.08

27 Financial Projections 2. Expense Projections: Service Line Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Employee Costs $ 1,021, $ 1,287, $ 1,287, $ 1,287, $ 1,287, $ 1,287, Fixed Costs $ 392, $ 355, $ 295, $ 295, $ 295, $ 295, Variable Costs $ 31, $ 269, $ 629, $ 1,027, $ 1,430, $ 1,833, Total Expenses $ 1,446, $ 1,913, $ 2,212, $ 2,611, $ 3,014, $ 3,417,

28 Financial Projections 3. Customer Acquisition Projections: Service Line Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 ProviderRx 86/0% 352/1% 674/2% 1,010/3% 1,346/4% 1,682/6% SNFList 86 3,452 10,974 18,510 26,046 33,582 SNFCharts 0/0% 155/1% 515/3% 875/6% 1,235/8% 1,595/10% Total Customers 172 3,959 12,163 20,395 28,627 36,859 (Customers/Market Share)

29 Exit Strategy 1. Recapitalization: Management team buyout. 2. Acquisition: a) Larger EMR companies (Practice Fusion) acquire SNFWare for the patient data b) Other SNF EMR vendors (Point Click Care) acquire SNFWare for the market share and physician system to add to their portfolio Restructuring: 1. IPO.

30 Capital Needed 1. Seeking $1.5M in Seed/Series A funding a) Burn Rate: $84, / Month 2. Use of Proceeds 1. Sales and Marketing: $227, Development: $320, Founders Salaries: $342, Staff Salaries: 293, Overhead: $297, Certification: $120, Milestones: 1. Breakeven: 15 months 2. $1M monthly revenue: 26 months 3. 1% market share: 22 months

31 Potential Customer Feedback 1. The ProviderRx product has been demonstrated to several potential customer groups: 2. Without marketing or promoting the product: a) We have targeted three provider groups all looking for a product like ours. All of these groups have been referrals from providers who have seen the demo of ProviderRx 3. Some comments: This is great, I can t wait until its ready. I want to use it now! Karen Rose, CNP This is a great product, I can see where it would really benefit our practice. Allison Kelly, MD PhD

32 Any Questions Improving healthcare one bit at a time M. CHRISTIAN ARMSRONG, MD MHSA / CEO Christian@snfware.com SNF1 (7631)