ipc healthcare investor presentation - jefferies · ipc healthcare adam singer, m.d. chairman, and...
TRANSCRIPT
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1CONFIDENTIAL | 1CONFIDENTIAL |
IPC Healthcare
Investor Presentation
Jefferies Healthcare Conference June 1, 2015
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2CONFIDENTIAL |
Forward-Looking Statements
The following information contains, or may be deemed to contain, “forward-looking
statements”. By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on circumstances that may or
may not occur in the future. The future results of the company may vary from the
results expressed in, or implied by, forward-looking statements, possibly to a material
degree. For a discussion of some of the important factors that could cause the
company’s results to differ from those expressed in, or implied by, forward-looking
statements, please refer to the company’s latest Annual Report on Form 10-K,
particularly the Section entitled “Risk Factors”. The company undertakes no obligation
to update or revise any forward-looking statements.
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3CONFIDENTIAL |
Company Overview
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4CONFIDENTIAL |
GROWTH Through Organic Hiring, Acquisitions, & Hospital Contracts
SOLVING Critical Needs Across the Continuum of Care
PROVEN and Diverse Referral Sources
SCALABLE Business Infrastructure
QUALITY Care in Acute and Post Acute Facilities
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5CONFIDENTIAL |
Leader in Acute Hospitalist and Post-Acute Services
Practice Regions
in 28 States
Strategically Positioned to Focus on the Most Critical, Expensive Part of Healthcare Delivery
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6CONFIDENTIAL |
Continued Momentum
1,961Providers
Q1 2013 Q1 2014
1,9611,713
2,057Facilities
2.0 MillionPatient Encounters
Q1 2013 Q1 2014
2.0M
1.8M
+11%+31%
+14%
Q1 2013 Q1 2014
1,574
2,057
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7CONFIDENTIAL |
Expanding Our Focus on the MostCritical, Expensive Part of Healthcare Delivery
ACUTE CARE
● Hospitals
● LTACs
POST-ACUTE CARE
● Skilled Nursing Facilities
● Inpatient Rehab and Psych Facilities
● Nursing Homes
● ALFs
Source: National Transitions of Care Coalition, 2010
21% of Medicare Patients
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8CONFIDENTIAL |
Hospitalists Ensure Quality Inpatient CareAcross the Healthcare Continuum
HOSPITALISTCoordinate, Manage, and Communicate Throughout the Healthcare Continuum
● Full Time Physicians and Mid Levels Without Office-Based Responsibilities
● Exclusive Focus on Facility-Based Care
● Expertise in Diagnosis and Treatment of Conditions Requiring Facility Admission
Hospital
LTAC
ACUTE CARE
Skilled Nursing Facility
Rehab and Psych Facilities
Nursing Home
ALF
POST ACUTE CARE
Patient Admission
Patient Discharge
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9CONFIDENTIAL |
Significant Headroom for IPC Healthcare Growth
392 Acute
1,665 Post Acute
Significant Market Share Growth Potential in a Very Large Industry
Source: Society of Hospital Medicine, 2013
March 31, 2015
TOTAL HOSPITALISTS TOTAL FACILITIES
1,961Hospitalists
+40,000Hospitalists
15,000 Post Acute Facilities
5,800 Acute
Facilities
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10CONFIDENTIAL |
Hospitalists Deliver ValueThrough High Quality Care
LOWERReadmit Rates
SHORTERLengths of Stay
IMPROVEDOutcomes
LOWERHealthcare
Costs
Direct Alignment with the Most Pressing Issues in Healthcare Today
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11CONFIDENTIAL |
Numerous and Diverse Relationships Drive Referrals
>48,000 REFERRING PHYSICIANS
SpecialistsPrimary Care
Physicians
LEADINGHEALTH PLANS
Health Plans
>2,050 FACILITIES
Post Acute Facilities
Hospitals
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12CONFIDENTIAL |
IPC Healthcare: A Compelling Modelfor Both Hospitalists and Hospitalist Groups
Significant Clinical Autonomy within a
National Group Practice
Less Administrative Burden
• Administrative Services
• Financial Reporting
• Billing and Collections
• Risk Management
• Compliance
• Clinical Services
• Information Management
• Transition Management
• Regional Management
More Resources
• “Strength in Numbers” Reduces Risk and Uncertainty of Smaller Private Practice
• Competitive Base Salary
• Productivity Based Incentive Bonus (No Cap On Earnings)
• Recruiting
• Ongoing Training and Development
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13CONFIDENTIAL |
Proprietary TechnologyDrives Operational, Clinical, and Scale Benefits
● Best Practices and Procedures
● Patient Encounter Tracking, Monitoring, and Research
● Transition Management
● Reporting and Financial Monitoring
IPC-Link®
Hospitalist Virtual Office
● Clinical Data Capture
● Clinical Communication
● Charge Capture and Billing
● Acquisition Assimilation
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14CONFIDENTIAL |
Enabling Clinical Excellence Through Connectivity
IPC-UCSF FELLOWSHIP1 Year Program to Healthcare Leaders● On-Site and Online
Curriculum
● Facility-Specific Quality Improvement Projects
● 35-40 Hospitalists Graduate Annually
SHINEWikipedia-Style Resource for Sharing Best Practices● Comprehensive Knowledge Across Topics
● Access Any Doctor, Any Time, on Any Subject
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15CONFIDENTIAL |
Simple Reimbursement Model
Patient Encounter
Medicaid5%
Self Pay4%
PrivateInsurers
42%
Medicare49%
Payor Mix
8%Paid by Hospitals and Post-Acute facilities
Revenue Sources(1)
92%Paid by Payors
● Reimbursed as a Facility Visit
● 1 Billable Hospital Visit per Day, per Patient
(1) Based on Data YTD 12/31/14
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16CONFIDENTIAL |
Multiple Growth Drivers
PROVIDERS# of FTEs
PRODUCTIVITYEncounters per
Provider
PRICINGRevenue per
Encounter
● 2015 YTD: 9 Acquisitions Completed, Entry into Maryland
● 2014: 22 Acquisitions Completed, Entry into North Carolina, South Carolina and Virginia
● 2013: 19 Acquisitions Completed, Entry into New York Metropolitan area
● Acquisition Pipeline Remains Robust
Acquisitions and New MarketsOrganic Growth● Continued Hiring Across Markets
● Broad Geographic Presence
● Large Internal Referral Base
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17CONFIDENTIAL |
Financial Overview
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18CONFIDENTIAL |
Strong Top-Line Growth
Patient EncountersIn Thousands
Net Revenue$ Millions
5,496
6,211
7,068
6,399
7,267
2012 2013 2014 TTM 2014Q1
TTM 2015Q1
CAGR13%
+14%
$523.5
$609.5
$694.0
$629.2
$702.0
2012 2013 2014 TTM 2014Q1
TTM 2015Q1
CAGR15%
+12%
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19CONFIDENTIAL |
Operating Leverage
G&A (% of Revenues)(1)
(1) Excludes Stock Based Compensation
Key Drivers
● IPC-Link® Technology
● Highly Scalable Infrastructure
● Commitment to Operating Efficiencies
14.8%15.0%
15.3%15.1%
15.4%
2012 2013 2014 TTM 2014 Q1 TTM 2015 Q1
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20CONFIDENTIAL |
EBITDA Growth
Adjusted EBITDA(1)
(1) Excludes gains or losses related to the net change in fair value of contingent consideration for practice acquisitions.
$ in Millions
Key Drivers
● Strong Top-Line Growth
● Significant Operating Leverage
$56.9
$66.6$72.6
$67.2$71.6
2012 2013 2014 TTM 2014Q1 TTM 2015Q1
CAGR13%
+7%
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21CONFIDENTIAL |
Significant Financial Flexibility
(1) Amount includes a $25.0 million accordion feature.
$ in Millions March 31, 2015
Cash and Equivalents $10.0
Total Debt $75.0
Total Market Capitalization $810.8
Line of Credit (1) $150.0
Cash Generated from Operations YTD $ 14.1
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22CONFIDENTIAL |
Executive Management Team
Name PositionHealthcare
IndustryIPC
Healthcare
Adam Singer, M.D. Chairman, and Chief Executive Officer 28 Years 19 Years
Jeffrey TaylorPresident andChief Operating Officer
32 Years 14 Years
Rick Kline Chief Financial Officer 5 Years 3 Years
Richard Russell Chief Development Officer 26 Years 11 Years
Kerry Weiner, M.D. Chief Medical Officer 34 Years 3 Years
Experience
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23CONFIDENTIAL |
CONTINUED Growth
SOLVING Critical Needs
PROVEN Network
SCALABLE Infrastructure
QUALITY Care