Post on 23-Dec-2015
transcript
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Forward Looking Statements
This presentation contains forward-looking information (within the meaning of applicable securities laws) relating to the business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results, economic or market conditions, and the outlook of or involving the Company and its business. Such forward looking information or statements are typically identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions.
Forward-looking information, including any financial outlooks, is provided for the purpose of providing information about management's expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions and expectations that the Company believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct and the forward-looking information, including the financial outlooks included in this Presentation, should not be unduly relied upon. Those assumptions and expectations are based on information currently available to the Company, including the historic performance of the Company's business. Such assumptions include anticipated financial performance, current business and economic trends, and business prospects and are subject to the risks and uncertainties which are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com.
The Company’s management has approved the financial outlooks contained in this presentation.
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Ambulatory Surgery Centers (ASCs)
Outpatient surgery facilities No overnight stay required Lower cost structure to patient
and insurance companies Better patient outcomes and
satisfaction Higher physician satisfaction Reduced patient risk factors
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Average charges – 33% lower
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ASC Industry Overview
Combined revenue of about $18 billion Untouched by Federal Healthcare Reform Act Fragmented market 50 largest companies generate 30% of the revenue U.S. ASC industry includes about 3,500 companies that operate
about 5,000 centers 75 independent ASCs in Houston; 350 in Texas High growth expected over next two years, driven largely by patients
seeking lower-cost alternatives to hospital care, better clinical outcomes and patient satisfaction, and physician steerage of patient care
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U.S. Healthcare Trends
Growth in outpatient surgeries due to Technology and Technique
National number of ASC’s has quadrupled in 30 years
Over 60% of all U.S. surgeries are as outpatients
More procedures suitable for ASCs
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19731977
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19972001
20052009
20132017
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1,000
2,000
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SCs
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Northstar - Overview
Northstar partners strategically with physicians in the development and management of ASCs with the mission of providing superior medical care, increased patient satisfaction, lower costs for healthcare delivery and revenue enhancement through innovative marketing campaigns.
NHC is a publicly listed company on the Toronto Stock Exchange (Ticker: NHC), although all of its operations are located in the U.S.
Outstanding Shares to date are 43 Million
Management Team collectively owns approximately 20 Million shares
Institutional Ownership Approximately 25%
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Outpatient SurgeryProfits
Bari,
Spine, DPM
Gyn, Pain
Gen Surgery, Ortho
Focus of Our Business
Most profitable part of the healthcare delivery system
Low costs if well managed
Profit margins can exceed 50% on a center level
ASCs better serve surgeons, patients and payors
Outpatient Surgery
Inpatient Surgery
X Rays
Labs
Medical Admissions
Hospital Profits
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Our Locations
Own and Operate 4 ASC’s:• 2 in Houston
• 1 in Dallas
• 1 in Scottsdale
Manage Clinical Operations:• Spine/pain management
• Bariatric
• Podiatry
Own and Operate 2 MRI and 1 Urgent Care Centers
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Focus: Surgical excellence and maximizing efficient use of facilities and resources
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KIRBY Surgical Center
Houston
Our ASCs
18 operating/procedure rooms
150+ surgeons on staff
Focus on high allowable and high margin outpatient surgical procedures
10,000+ cases per year
Close to major medical centers
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Revenue Growth Programs
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Physician Contracting
Accretive revenues for ASC
Surgeon does not need to purchase equity
Northstar’s ownership is not diluted
Direct to Consumer Marketing
Current Campaigns:• NueStepSM (Podiatric nerve decompression)• CuraSpineSM (Spine)• Bariatrics
Upcoming Campaigns:• Peripheral Bariatric Campaigns
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Direct to Consumer Marketing
Launched first campaign spring 2013
Marketing infrastructure• Campaign production
• Call center
• Media components
• Online presence
• Analytics for campaign optimization
Clinical Management
Lead Management
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Marketing Campaigns
Current Campaigns:• NueStepSM (Podiatric nerve decompression)
• CuraSpineSM (Spine)
• Bariatrics
Upcoming Campaigns:• Peripheral Bariatric Campaigns
• General Surgery
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Reimbursements
High-Margin Cases:• Minimally invasive spine surgery
• $50,000
• Bariatric surgery• $40,000
• Podiatric nerve decompression• $20,000
• Pain management procedures• $5,000 - $10,000
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Consolidated Revenue & Operating EBITDA*
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*Operating EBITDA is net of non-controlling interest but not including the corporate expense**2013E EBITDA includes gain on bargain purchase from the Scottsdale acquisition
2010 2011 2012 2013 E 2014 E $(10,000)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$12,329 $14,380
$20,897
$31,127
$74,000
$(3,534) $(1,090)
$2,049 $2,147
$9,917 $2,487 $2,368
$5,999 $5,252
$15,168
Revenue EBITDA Operating EBITDA
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Marketing Metrics
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DTC Conversion Rate *Lead to Appointment 40%Appointment to Surgery 31%Lead to Surgery 12%
Campaign Cost perLead $1,002Appointment $2,484 Surgery $7,951
* Figures based on matured campaign cycle
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Accelerated Growth Beyond Organic
Acquisition Targets
Acquire ownership of local surgical hospital(s) to complement current marketing programs
A small-size ASC to service current in-network marketing leads
ASC(s) beyond current market area: San Antonio
Ancillary healthcare facilities to diversify revenues and develop referrals
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Investment Highlights
Northstar Healthcare = Significant growth opportunity
Compelling value proposition for surgeons, patients, and payors
Strong position in high growth ASC industry
Proven track record of performance
Acquisition environment – accretive and accelerated market entry
Platform for scalable growth into multiple markets