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1
Proprietary & Confidential
Credit Suisse 2012 Healthcare Conference November 14, 2012
Phoenix
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Proprietary & Confidential
Safe Harbor Statement
Certain statements contained in this presentation may be considered forward-looking as defined by the Private
Securities Litigation Reform Act of 1995. In particular, any statements made about Accretive Health’s expectations for
future financial and operational performance, expected growth, new services, profitability or business outlook, the
effects of the ongoing investigations of our operating practices being conducted by various parties, our responses to
these investigations and the impact of the Company’s settlement allegations with the Minnesota Attorney General,
securities-related class action and derivative lawsuits filed against us and certain of our officers and directors, follow-on
investigations and inquiries by government authorities, and other litigation matters, all of which involve risks and
uncertainties, are forward-looking statements. Investors are cautioned not to place undue reliance on such forward-
looking statements. There is no assurance that the matters contained in such statements will occur since these
statements involve various risks and uncertainties that could cause actual results to differ materially from those
expressed in such forward-looking statements. These risks and uncertainties include those listed under the heading
Risk Factors in the company’s Quarterly Report on Form 10-Q for the period ended September 30, 2012, which is
available on the SEC’s website as well as in the investor relations portion of Accretive Health’s website at
Accretivehealth.com. The forward-looking statements made in this presentation are based on the company’s beliefs and
expectations as of November 14, 2012 only and should not be relied upon as representing the company’s views as of
any subsequent date. While the company may elect to update these forward-looking statements at some point in the
future, Accretive Health specifically disclaims any obligation to do so, even if its views change.
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Proprietary & Confidential
Three Distinct Offerings
Revenue Cycle Management
Physician Advisory
Services
Quality and Total
Cost of Care
Assist hospitals maximize compliant revenue for inpatient stays
Complete infrastructure for population health management and episodic care
First of its kind end-to-end comprehensive revenue cycle management
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Proprietary & Confidential
Our Mission
Our Mission: To help our healthcare clients strengthen their financial stability and
deliver better care to communities they serve increasing healthcare access for all
We leverage our people, processes, and technology to achieve our mission:
Our success is defined by Measured Value we deliver to our clients, enabling
them to meet the goal of improving the health of the communities they serve
People
Processes
Technology Comprehensive tools to measure and improve
efficiency for clinical and financial outcomes
Market leading processes and best practices to produce seamless workflow management
Outstanding professionals who work tirelessly to achieve exceptional results
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Proprietary & Confidential
Healthcare Industry Facing Multiple Pressures
In an Increasingly Complex Healthcare Landscape,
Accretive Health Delivers Compelling Solutions
Quality and Total
Cost of Care and
Intra-Stay Quality
Pressures Solutions
Quality Pressures
Lack of Technology Infrastructure
Compliance Pressures
Insufficient Internal Resources
Financial Pressures
Revenue Cycle
Management
Physician
Advisory Services
New Regulations
Obama Care / ICD-10
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Proprietary & Confidential
Market Opportunity
$50 billion market opportunity
Revenue Cycle Management
AccretivePAS® Quality and Total Cost of Care
$100 billion domestic market opportunity
Nearly $1 billion market opportunity
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Proprietary & Confidential
Highly Diversified Prestigious Client Base
Community Health Systems/ Integrated Delivery Network
Partnering with Market Leaders Across Multiple Operating Environments
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Proprietary & Confidential
Compelling Revenue Cycle Value Proposition
Revenue Cycle Value Proposition
No upfront costs to implement
400-600 basis point typical improvement in operating margin at contract maturity
Customers engage with Accretive Health as a critical operating partner
$30 million in additional value created annually for a typical hospital with $1billion in NPSR
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Proprietary & Confidential
End-to-End Solution Provides Competitive Advantages
SaaS /
Technology- Supported
RCM BPO
Consulting
IT
Outsourcing / Non-HC BPO
Payor
Follow-Up
Patient
Advocacy
Patient
Share
Lost
Charges Compliance
4-6% (Measured)
Value Proposition
(% revenue lift)
Est. 0.5 -1% (Not Measured)
Est. 0.5 -1% (Measured)
Est. 0.5 -1.5% (Not Measured)
Note: Based on Management’s estimates
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Proprietary & Confidential
1%
1%
2%
1%
5%
0%
1%
2%
3%
4%
5%
Self-Pay Conv.
Patient Yield Payor Yield Incr. to net revenue
Total Revenue Lift
Payroll60%
Third-Party Spend30%
Technology10%
Indicative Revenue Lift(1)
Cost Components
Indicative Hospital
$1 Billion NPR
Potential Value Created
$50 Million
$9 Million
Cost Conversion
(1) Net revenue improvement as measured against hospital base year NPR
Clerical Expense Converted to High Impact Investment
(Typically 80% of lift is included in gain-share calculation)
(% of baseline NPR)
Accretive’s Base Fee
$43 Million
RCM Spend
$9M in savings from
automation and efficiency of low-end clerical labor redeployed in technology,
analytics and higher end human talent
Revenue Lift and Cost Takeout Drive Significant Benefits
Majority of $ Goes to Client
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Proprietary & Confidential
Incremental Benefits Delivered Through Shared Services
Expanding network of centers -
domestic and blended shore
offering
Delivering broad array of functions
– Pre-registration, financial clearance, billing, follow-up,
transcription, pre-collections,
collections, customer contact
52% of our revenue cycle
management customers are in shared services
Enhanced Benefits:
– Greater cost savings than under managed services model
– Ability to generate more revenue lift
– Greater economies of knowledge
Accretive Health’s Network of Shared Services Centers
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Proprietary & Confidential
Highly Differentiated Technology
Full visibility into the factors influencing
revenue yield loss
Technology within and across processes to
drive bottom-line results
– Technology suite different from clinical healthcare systems and from patient
accounting systems
– State of the art technology
Focus on continuous learning
– Extensive hospital operations experience
– Data mining and analysis
– Business operator expertise
Our Technology is Different Because Our Organization is Different
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Proprietary & Confidential
End-to-end Infrastructure
Sophisticated Business and
Payor Contracting Model
Proprietary Data and
Technology Platform
Physician Performance and
Change Management
Patient Engagement /
Coordination of Providers’
Care Management
Continuous R&D and
Predictive Performance
Population-Based Management: The Future of Healthcare Delivery
Quality and Total Cost of Care
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Accretive works with primary care
physicians when addressing large diverse
populations and with specialists in high-
variability and high-cost specialties (i.e.
oncology)
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Proprietary & Confidential
Population-Based Management: The Future of Healthcare Delivery
Sickest
and most
responsive
patients
Patient-specific
care plans and
care
coordination
workflow
Real-time
clinical
pathway
adjustment
R&D Platform
Continuous care
assessment and
patient population
management system
that allows
physicians to focus
on the sickest
patients with the
optimal clinical path
to improve quality
and cost outcomes
Access Point
Algorithms
Providing an End-to-End Infrastructure
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Proprietary & Confidential
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1. Develop a first-of-its kind, end-to-end oncology care management offering which
includes:
a) Best practice protocols and processes to improve quality, standardize care and eliminate
waste
b) New payment model to incent highest quality of care at most appropriate cost (i.e. cancer
benefit management)
c) Highly interactive technology and workflow tools to engage physicians and patients
d) On-the-ground resources to provide data, analytics, and research
2. Co-Develop and Go-to-Market with Cancer Centers of Excellence with access to 224
oncologists practicing evidence-based medicine across 15 states
CCE – Accretive Health Partnership
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Proprietary & Confidential
Physician Advisory Services
Offering to assist hospitals
maximize compliant revenue for
inpatient stays
Direct physician contact with
Accretive Health physicians to
determine proper classification for
billing purposes
Pre-emptive chart reviews
to identify inappropriately classified
cases for billing purposes
Team of highly trained clinicians to
help customers respond to denials
Continuous improvement
through analytics
AccretivePAS® Solution Growing Portfolio of Clients
0
50
100
150
200
250
2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1
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Proprietary & Confidential
Accretive Health’s Platform for Innovation
Sophisticated and proven change management engine
Strategic partner to CEOs, CFOs and operating leadership who welcome innovative value proposition ideas, and serve as customer references
Leading provider of Revenue Cycle – “we see it all”
Comprehensive knowledge of existing and evolving healthcare payment systems
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Proprietary & Confidential
End-to-end Infrastructure
Physician Engagement and
Change Management
Proprietary Workflow
Technology Platform
Standard Procedures /
Assisting Providers with
Patient Care Coordination
Effective Transition
Management
Intra-Stay Quality
Intra-Stay Quality
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Proprietary & Confidential
Historical Financial Performance (dollars in millions)
241
398 510
606
826
2007 2008 2009 2010 2011
7 12
33 45
82
2007 2008 2009 2010 2011
2.8% 3.1%
6.5%
7.4%
36%
CAGR
86%
CAGR
Net Services Revenue Non-GAAP Adj. EBITDA / EBITDA Margin
Adjusted EBITDA adds back stock-based compensation expense and other non-recurring charges to EBITDA
See appendix for discussion of the use of Non GAAP measures
9.9%
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Proprietary & Confidential
2012 Outlook
PCARR
Net Services Revenue
Adjusted EBITDA
Adjusted EPS
$930M - $960M
Low end of
$948M - $980M
$50M - $55M
$0.23-$0.27
As provided on November 7, 2012
Includes $30 to $33 million of non-recurring items
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Proprietary & Confidential
2013 Growth Priorities and Strategic Initiatives
Extend
Leadership
In Revenue
Cycle
Management
Accelerate
Quality and Total
Cost of Care and
Intra-Stay Quality
Scale
Physician
Advisory
Services
Invest in Priority Areas
Long-Term Targets
Net Services
Revenue Growth:
20 – 25% CAGR
Adj. EBITDA Margin:
14% - 18%
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Proprietary & Confidential
In order to provide stockholders with greater insight and to allow for better understanding of how our management and board
of directors analyze our financial performance and make operational decisions, we supplement our condensed consolidated financial statements presented on a GAAP basis with the adjusted EBITDA and adjusted net income measures *.
Adjusted EBITDA measure has limitations, as noted below, and should not be considered in isolation or in substitute for
analysis of our results as reported under GAAP.
Our management uses adjusted EBITDA:
• as a measure of operating performance, because it does not include the impact of items that we do not consider indicative of our core operating performance;
• for planning purposes, including the preparation of our annual operating budget;
• to allocate resources to enhance the financial performance of our business;
• to evaluate the effectiveness of our business strategies; and
• in communications with our board of directors and investors concerning our financial performance.
We believe adjusted EBITDA is useful to stockholders in evaluating our operating performance for the following reasons:
• these and similar non-GAAP measures are widely used by investors to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon financing and
accounting methods, book values of assets, capital structures and the methods by which assets were acquired;
• securities analysts often use adjusted EBITDA and similar non-GAAP measures as supplemental measures to evaluate the overall operating performance of companies; and
• by comparing our adjusted EBITDA in different historical periods, our stockholders can evaluate our operating results without the additional variations of interest income (expense), income tax expense (benefit), depreciation and
amortization expense and share-based compensation expense.
We understand that, although measures similar to adjusted EBITDA are frequently used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider it in
isolation or as a substitute for analysis of our results of operations as reported under GAAP. To properly and prudently evaluate our business, we encourage you to review the GAAP financial statements included elsewhere in our regulatory
filings, including the Preliminary Prospectus, Form 8-K, and Form 10-K, and not to rely on any single financial measure to
evaluate our business.
* Reconciliations of non-GAAP measures to their most directly comparable GAAP measures are presented, where possible in the Appendix,
as well as in the Company’s financial press releases and related Form 8-K filings with the Securities and Exchange Commission.
This information can be accessed for free in the Investor Relations section of the Company’s website at www.accretivehealth.c om
Appendix – Use of Non-GAAP Financial Measures
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Proprietary & Confidential
Appendix - Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of adjusted EBITDA to net income, the most comparable GAAP measure
in millions 2007 2008 2009 2010 2011
Net Income $0.8 $1.2 $14.6 $12.6 $29.2
Net Interest Expense (Income) (1.7) (0.7) 0.0 (0.0) (0.0)
Provision for Taxes 0.5 2.3 3.0 9.7 18.9
Depreciation & Amortization Expense 1.3 2.5 3.9 6.2 8.3
EBITDA $0.8 $5.3 $21.5 $28.5 $56.4
Stock Compensation Expense 6.0 6.9 11.4 16.5 25.2
Adjusted EBITDA* $6.8 $12.2 $32.9 $45.0 $81.6
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Proprietary & Confidential