Accretive Health - Revenue Cycle - Revenue Cycle Management

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  • 1. Proprietary & ConfidentialCredit Suisse 2012 Healthcare Conference November 14, 2012 Phoenix 1
  • 2. Proprietary & ConfidentialSafe 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 Healths 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 Companys 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 companys Quarterly Report on Form 10-Q for the period ended September 30, 2012, which is available on the SECs website as well as in the investor relations portion of Accretive Healths website at Accretivehealth.com. The forward-looking statements made in this presentation are based on the companys beliefs and expectations as of November 14, 2012 only and should not be relied upon as representing the companys 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. 2
  • 3. Proprietary & ConfidentialThree Distinct Offerings First of its kind end-to-end Revenue Cycle comprehensive revenue Management cycle management Complete infrastructure for Quality and Total population health management Cost of Care and episodic care Assist hospitals maximize Physician Advisory compliant revenue for Services inpatient stays 3
  • 4. Proprietary & ConfidentialOur MissionOur Mission: To help our healthcare clients strengthen their financial stability anddeliver better care to communities they serve increasing healthcare access for allWe leverage our people, processes, and technology to achieve our mission: Outstanding professionals who work tirelessly to People achieve exceptional results Market leading processes and best practices Processes to produce seamless workflow management Comprehensive tools to measure and improve Technology efficiency for clinical and financial outcomesOur success is defined by Measured Value we deliver to our clients, enablingthem to meet the goal of improving the health of the communities they serve 4
  • 5. Proprietary & ConfidentialHealthcare Industry Facing Multiple Pressures In an Increasingly Complex Healthcare Landscape, Accretive Health Delivers Compelling Solutions Pressures Solutions Financial Pressures New Regulations Obama Care / ICD-10 Compliance Pressures Quality Pressures Revenue Cycle Quality and Total Physician Lack of Technology Infrastructure Management Cost of Care and Advisory Services Intra-Stay Quality Insufficient Internal Resources 5
  • 6. Proprietary & ConfidentialMarket Opportunity Revenue Cycle Management Quality and Total Cost of Care AccretivePAS $50 billion market $100 billion domestic Nearly $1 billion opportunity market opportunity market opportunity 6
  • 7. Proprietary & ConfidentialHighly Diversified Prestigious Client Base Partnering with Market Leaders Across Multiple Operating Environments Community Health Systems/ Integrated Delivery Network 7
  • 8. Proprietary & ConfidentialCompelling 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 8
  • 9. Proprietary & ConfidentialEnd-to-End Solution Provides Competitive Advantages Patient Patient Lost Payor Value Proposition Compliance Advocacy Share Charges Follow-Up (% revenue lift) 4-6% (Measured) SaaS / Technology- Est. 0.5 -1% Supported RCM BPO (Not Measured) Est. 0.5 -1% Consulting (Measured) IT Est. 0.5 -1.5%Outsourcing / (Not Measured)Non-HC BPO Note: Based on Managements estimates 9
  • 10. Proprietary & Confidential Revenue Lift and Cost Takeout Drive Significant Benefits Indicative Revenue Lift(1) Indicative Hospital Potential Value Created(% of baseline NPR) 5% Majority of $ Goes 4% 1% to Client 3% 2% 2% 5% $1 Billion NPR $50 Million 1% 1% 1% 0% (Typically 80% of lift is included Self-Pay Patient Yield Payor Yield Incr. to net Total Conv. revenue Revenue Lift in gain-share calculation) Cost Components $43 Million RCM Spend Technology 10% Accretives Base Fee $9 Million Third-Party Spend $9M in savings from Cost Conversion 30% Payroll automation and efficiency of 60% Clerical Expense low-end clerical labor Converted to High redeployed in technology, Impact Investment analytics and higher end human talent (1) Net revenue improvement as measured against hospital base year NPR 10
  • 11. Proprietary & ConfidentialIncremental Benefits Delivered Through Shared Services Accretive Healths Network of Shared Services Centers 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 Enhanced Benefits: shared services Greater cost savings than under managed services model Ability to generate more revenue lift Greater economies of knowledge 11
  • 12. Proprietary & ConfidentialHighly Differentiated Technology Our Technology is Different Because Our Organization is Different 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 12
  • 13. Proprietary & ConfidentialPopulation-Based Management: The Future of Healthcare Delivery Quality and Total Cost End-to-end Infrastructure of Care Sophisticated Business and Payor Contracting Model Proprietary Data and Technology Platform Add this picture http://www.istoc kphoto.com/sto Physician Performance and ck-photo- Change Management 8112453-female- doctor-talking- with-senior- Patient Engagement / patient.php?st= Coordination of Providers 571b93b Care ManagementAccretive works with primary carephysicians when addressing large diverse Continuous R&D andpopulations and with specialists in high- Predictive Performancevariability and high-cost specialties (i.e.oncology) 13
  • 14. Proprietary & ConfidentialPopulation-Based Management: The Future of Healthcare Delivery Providing an End-to-End Infrastructure Sickest and most...

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