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It’s not for everyone. It’s healthcare for you. An estimated $5 billion dollar industry and growing at a 34% CAGR, concierge medicine in the U.S. is highly fragmented and growing quickly. *The Concierge Medicine Research Collective

Personal care physicians series b preferred investment presentation

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Page 1: Personal care physicians series b preferred investment presentation

It’s not for everyone.

It’s healthcare for you.

An estimated $5 billion dollar industry and growing at a 34% CAGR, concierge medicine in the U.S. is highly fragmented and growing quickly.

*The Concierge Medicine Research Collective

Page 2: Personal care physicians series b preferred investment presentation

Legal Disclaimer

This presentation uses forward-looking statements and assumptions that involve risks and uncertainties, including, but not exclusively,

the risks associated with the effect of changing economic conditions, changes in the markets, variations in the company’s business plan,

market acceptance risk, technical development risks, and other business risk factors. In light of these and other risks, and uncertainties,

there can be no assurance that the events predicted will in fact transpire. All care and diligence has been used to ensure fair

and accurate projections, based upon current methodology, current market conditions, research and analytic data.

AN ALTERNATIVE INVESTMENT INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE UNDERTAKEN ONLY BY PERSONS

WHOSE FINANCIAL RESOURCES ARE SUFFICIENT TO ENABLE THEM TO ASSUME SUCH RISK AND TO BEAR THE TOTAL

LOSS OF THEIR INVESTMENT.

THIS PRESENTATION IS ONLY FOR ACCREDITED INVESTORS, INSTITUTIONAL LENDERS AND QUALIFIED PURCHASERS.

Page 3: Personal care physicians series b preferred investment presentation

PersonalCare helps doctors,

health systems, and companies

provide optimal health solutions to

the 1%.

Page 4: Personal care physicians series b preferred investment presentation

Momentum Largest provider of concierge healthcare services in Orange County, CA

3 locations, 1,800 paying members

300 personal training members

20 enterprise accounts

$3M+ recurring management fee revenue

$5M+ in recurring practice access fee revenue

Health system brand license

Secured $4.5M in equity

Sourced immediate expansion opportunities in adjacent geographies

Trending EBITDA positive Q4 2015

Page 5: Personal care physicians series b preferred investment presentation

Industry Growth Healthcare inflation & decreasing service quality has led to dissatisfaction with traditional primary care and has led to rapid

growth in concierge medicine.

Concierge physicians grown at 34% CAGR over the past 3 years

Market is estimated to be $5BB*

Highly fragmented market; 60% of concierge physicians practice alone*

A national category killer does not exist

Sophisticated competition does not exist in Southern California market

o Significant investment capital is being deployed in the space in an effort to meet growing

demand.

o One Medical, a low-price competitor has raised $140 million

o MDVIP sold for ~$300 million in April 2014; estimated to be 19 x trailing EBITDA

o Qliance has raised $27 million in investment capital

o iorahealth has raised $70 million in Series A, B, and C investment capital

*The Concierge Medical Research Collective

Page 6: Personal care physicians series b preferred investment presentation

Customers

6

• Hoag

• St. Joseph’s

• Etc.

Hospitals

• PIMCO

• In-N-Out

• Irvine Company

Business to Business

• Affluent consumers with income of $250k+Business to Consumer

• Medical GroupsMedical Groups & Physicians

Page 7: Personal care physicians series b preferred investment presentation

Geographic Scope

The prototypical PersonalCare member is an

executive with annual household income of

$250,000 or greater.

Southern California has 280,000 households with

income of $250,000+ representing 900,000

prospects.

PersonalCare’s goal is to acquire 3% of Southern

California residents earning $250k, which will

generate 21,000 members for PCP’s managed

practices.

Page 8: Personal care physicians series b preferred investment presentation

• 24/7 access by phone, text, & email.

• Patient Time Priority• Same day

appointments • Critical health issue

response• Access to best

specialists and medical centers

• Personalized, comprehensive health & wellness plan

• One-on-one consultations

• Proactive, personalized health updates

• Continuous monitoring and assessing

• Board certified• Highly respected

in medical communities

• Medical partners steeped in patients’ health histories

• A team of highly trained clinicians

• State-of-the-art diagnostics

• Establish key preventive markers

• Assessment integrates nutrition, mobility, flexibility, and fitness

• Fitness & nutrition support with medical supervision

Page 9: Personal care physicians series b preferred investment presentation

Business Model

PCP generates revenue by managing concierge medical practices for a fee

Fees are either formulated as a percent of revenue or a mark-up on cost

Fees in existing practices average 55% of practice revenue

Physicians generate approximately $625k in management fee revenue once membership panel hits 380

Practice margins at capacity are approximately 40%

o Fees of practices in development in Los Angeles and San Diego will be cost + mark up (approximately 20%)

oCost + management agreements have lower margins than percent of revenue management agreements but these

locations are immediately profitable and therefore enhance PCP’s ability to scale into new markets at minimal risks

Page 10: Personal care physicians series b preferred investment presentation

Strategic Growth Plan

Secure large membership base by dominating the B2B market for executive health and concierge services; augment enterprise

growth by “rolling up” existing concierge medical groups.

Grow B2B

Partner with health networks to allow PCP services to be provided in the system’s closed-end insurance network

Partner with enterprise accounts that want to provide best-in-class healthcare to executives

Grow B2C

Increase prospect generation by investing in targeted marketing campaigns – historically all leads come from WOM and

referrals

Add “Cost +” and Specialists to scale

Partner with existing concierge providers in Orange County, Los Angeles and San Diego to maximize speed-to-market

Page 11: Personal care physicians series b preferred investment presentation

Distribution

Direct SalesHospital

PartnershipsBenefits Brokers

Strategic Partnerships

Page 12: Personal care physicians series b preferred investment presentation

Board of Directors

Troy Medley

•Chairman & CEO

•Pepperdine MBA

Will Kessinger

•Founder (VFormation)

•Managing Partner Parthenon Capital Partners

•Harvard MBA

Jordy Spiegel

•Spiegel & Partners

•Harvard MBA

Cynthia Perezzo

•Hoag Board Designee

•Senior Vice-President, Strategy and Business Development

•Harvard MBA

Dr. Jeffrey Barke, M.D.

•Founder

Dr. Kenneth Cheng, D.O.

•Founder

Page 13: Personal care physicians series b preferred investment presentation

Senior Management Team

Troy Medley

•CEO

•MBA

Kevin Davidson

•CSO

•MHA

Dr. Jim Lindberg

•CMO

•M.D

•MBA

Page 14: Personal care physicians series b preferred investment presentation

2015 2016 2017 2018

Practices 5 8 9 10

Physicians 14 20 25 30

Members 2,800 5,500 8,000 9,000

Revenue $4.1M $9.2M $12.8M $14.7M

Expenses $4.7M $7.3M $8.3M $8.4M

EBITDA $(684)K $1.9M $4.4M $6.3M

*PCP intends to build additional practices in Orange County and expand throughout Southern California. Practices are currently being developed for Newport Beach, La Jolla, Beverly Hills and Century City.

*Forecasted performance of current practice footprint AND practices in development

Forecast - Growth

Page 15: Personal care physicians series b preferred investment presentation

2015 2016 2017 2018

Practices 3 3 3 3

Physicians 10 12 14 14

Members2,360 3,700 4,400 4,550

Revenue $3.6M $5.4M $7.3M $8.0M

Expenses $4.2M $4.3M $4.4M $4.5M

EBITDA $(660)K $1.1M $2.9M $3.5M

*Forecasted performance of current practice footprint at current growth trend

Forecast – Steady State

Page 16: Personal care physicians series b preferred investment presentation

Forecast – Steady State vs. Growth

($2)

$0

$2

$4

$6

$8

$10

$12

$14

$16

2015 2016 2017 2018

Growth Forecast

Revenue Expense EBITDA

Million

($2)

$0

$2

$4

$6

$8

$10

$12

$14

$16

2015 2016 2017 2018

Steady State Forecast

Revenue Expense EBITDA

Million

Page 17: Personal care physicians series b preferred investment presentation

Competition

target

target

Page 18: Personal care physicians series b preferred investment presentation

Exit Strategy

Expected Price Premium at Exit

He

alth

Sy

ste

ms • Allows health

system access to the premium consumer of healthcare services which enhances the value of its closed insurance network

• Health systems need premium payers to subsidize mass market

Str

ate

gic

Bu

ye

r • Allows provider of revenue enhancement solutions to health systems to partner with health systems to rapidly create a concierge network

• Revenue enhancement consultants need a “new” service that can provide immediate value, as cost containment strategies have reached diminishing returns

Co

mp

etito

r • Allows competitor that invested in scale without a differentiated solution to plug a better service into its network

• Undifferentiated competitors need to purchase capabilities to compete as industry matures

Gro

wth

Eq

uity • Allows a financial

buyer looking to create critical mass entry into the lucrative Southern California market

• Financial buyers need scale to reach IPO

Page 19: Personal care physicians series b preferred investment presentation

Investment $1M of an authorized $2M in Series B Preferred growth equity = 4% of the company.

Current investors: Management, Silicon Valley venture capital firm, and Hoag Hospital

LLC liquidation preference enhances tax shield and IRR

8% accruing preferred distribution

Closing before April 15th, 2014

Use of Capital

Add Business Development personnel

Underwrite legal costs associated with developing cost+ management agreements

Fund working capital

General corporate needs