AdvantEdge Healthcare Solutions October 2012

Transcription

1 AdvantEdge Healthcare Solutions October 2012

2 Enabling Healthcare Providers to Thrive AHS is a technology enabled provider of Revenue Cycle Management Services, Informatics, and Expertise that enables healthcare providers to maximize financial performance and eliminate compliance risks.

3 About AdvantEdge AdvantEdge Healthcare Solutions Top 10 medical billing, coding and practice management company Over 675 employees in 8 regional offices in the US and 1 office in Bangalore, India Collecting over $1.25B for its physician clients Recognized industry leader - uniquely positioned Clients are typically large medical group practices with a high propensity to outsource due to practice characteristics Since 1966, AdvantEdge (and/or its acquired entities) has served some of the nation s most respected healthcare institutions Hospital for Special Surgery Advocate Healthcare System St. Barnabas Health System Erlanger Health Centers North Shore-LIJ Health System Wellspan SUNY Downstate Med Center Partners Healthcare The Company continues to enjoy outstanding growth opportunities Thoughtful acquirer yielding 5 year CAGR of 41% in a consolidating market Organic growth rate (annualized revenue of new sales closed) average of 19.8% annually over past 5 years AdvantEdge has been recognized as one of the fastest growing companies by regional and national publications, such as INC magazine (4 years running) and NJBusiness (top 10 growth company in 2010)

4 Business Characteristics Highly predictable recurring revenues and strong cash flow Superior client retention Significant Operating Leverage: Scalable platform based on proprietary technology and workflow Effective buy-and-build strategy: Integrate, Migrate, Operate Sales & marketing focus with aggressive organic growth strategy Management Team has extensive industry, acquisition and integration experience

5 Market Leading Strategy Creating Value for Clients, Employees, and Stakeholders through: GROWTH EFFICIENCY ZERO CLIENT ATTRITION TECHNOLOGY INTEGRATION

6 Geographic Presence AHS has a broad footprint across the US and Bangalore, India AHS Office AHS Client AHS Clients (Multiple/many clients)

7 AdvantEdge Value Proposition The Problem Attract & retain high-quality staff Constant threat of reduced reimbursement rates Increasing complexity & regulatory requirements Technology and staff investments are expensive The AHS Solution More Money, Faster Compliance, Built-in Business Intelligence and Reporting Anytime/Anywhere Client First Service

8 Market Opportunity The market for the Company s services is estimated at $4B - $8B Office-based RCM $0.70 Large and growing market: Physician expenditures increasing by 8% + / yr. Increasing shift to outsourcing (RCM); currently less than 20% of total Largest competitor has under 5% of total market $3.30 In-House: Practice Management $4.00 Hospital Based MD RCM $4.00 AHS Target Market Target markets Billing and Practice Management Service Market (Falcon Capital): $8.0B Total RCM Market (Wallingford Capital/HBMA, 2007): $4.7 B; top 10 billing cos.: $1.0B

9 Financial Performance **EBITDA reflected throughout this report is adjusted to add back capital and acquisition related costs and Investor Group management fees 2009 Revenue and EBITDA growth of 116% and 125% respectively 2010 Revenue and EBITDA growth of 85% and 280% respectively 2011 Revenue and EBITDA growth of 41% and 67% respectively