United American Healthcare Corp. · OTC:UAHC
United American Healthcare — Investor Presentation (November 2006)
28 slides from United American Healthcare's investor presentation, November 2006
Slide 1: United American Healthcare Corporation Investor Presentation November 2006
United American United American Healthcare Healthcare Corporation Corporation NASDAQ||UAHC NASDAQ UAHC InvestorPresentation Investor Presentation November2006 November 2006 1 United American Healthcare Corp. | A full service managed care organization, serving Medicaid recipients since 1985
Slide 2: Disclaimer | Forward-Looking Statements
Disclaimer | Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such st
Slide 3: Company Overview
UAHC | Company Overview United American Healthcare Corporation (NASDAQ: UAHC) is a full-service healthcare management company, pioneering the delivery of healthcare services to Medicaid recipients since 1985 Founded: 1985 Headquarters: Detroit, MI Employees: 107 Company Profile: United Ameri
Slide 4: Experienced Management
UAHC | Experienced Management William Brooks, Chairman, President and CEO Brooks has served the Company as a director since 1997, as Chairman of the Board of Directors since 1998, and as President and CEO since 2002. Brooks is a retired member of the Boards of Directors of Louisiana-Pacific Co
Slide 5: Our Value Proposition
UAHC | Our Value Proposition Commitment to Quality. Our efforts are concentrated on low-income families and people with disabilities in select markets where the Company is able to leverage its expertise as a competitive advantage Established Network of Healthcare Partners. 19 hospital partners a
Slide 6: Committed to Quality Managed Care
UAHC | Committed to Quality Managed Care In October 2006, the National Committee for Quality Assurance (NCQA) awarded UAHC- TN an Accreditation status of “Commendable” The NCQA survey is comprehensive in scope, including on-site and off-site evaluations of more than 60 standards and selected Hea
Slide 7: The Value Chain – Benefits of Managed Care
UAHC | The Value Chain – Benefits of Managed Care UAHC -TN UAHC-TN Healthcare Healthcare Consumer Consumer Healthcare Healthcare Supplier Supplier Value Value Proposition Proposition Commercial employer Strategic planning Physician Partners groups Enrollment Hospital Partners Government-
Slide 8: Operational Overview
UAHC | Operational Overview Medicaid Managed Care (“Core Business”) Medicare Advantage (“Growth Engine”) Years’ Experience In Medicaid: 20 The Opportunity: As a Medicare Advantage approved organization, UAHC-TN is eligible to serve members Current Plan Membership: 116,034 enrolled in both the
Slide 9: Section 1: The Medicaid Managed Care Business
UnitedAmerican United AmericanHealthcare HealthcareCorporation Corporation Section1:1: The Section TheMedicaid MedicaidManaged ManagedCare CareBusiness Business 9 United American Healthcare Corp. | A full service managed care organization, serving Medicaid recipients since 1985
Slide 10: Overview - Medicaid Managed Care in the U.S.
UAHC | Overview - Medicaid Managed Care in the U.S. Medicaid in the United States Number Number of of U.S. U.S. Citizens Citizens Enrolled Enrolled in in Medicaid: Medicaid: 55.0 55.0 million* million* Medicaid is a state-administered program Annual Annual U.S. U.S. spending spending on on Medic
Slide 11: Medicaid in Tennessee – Intro to TennCare
UAHC | Medicaid in Tennessee – Intro to TennCare Medicaid in Tennessee Tennessee began a new healthcare reform program called “TennCare” in 1994 TennCare replaced the Medicaid program in Tennessee TennCare extended coverage to uninsured and uninsurable persons who were not eligible for Medic
Slide 12: Rising Healthcare Costs Impact State Budgets
UAHC | Rising Healthcare Costs Impact State Budgets Rising healthcare costs remain a concern to taxpayers. National Medicaid expenditures have risen at an average of 8.2% annually since 1995.* TennCare is one of the most costly state healthcare programs in the nation. Beginning in 2002, TennCa
Slide 13: Explanation of the “Modified Risk” Arrangement
UAHC | Explanation of the “Modified Risk” Arrangement Part administrative fee-based, part risk-based. Effective July 1, 2005, TennCare implemented a plan to reduce administrative fees and began a modified risk arrangement for the compensation of TennCare's contracted managed care organizations (MC
Slide 14: Implications of The Middle-Tennessee RFP
UAHC | Implications of The Middle-Tennessee RFP The Middle Region RFP. In April 2006, the State of Tennessee issued a request for proposal (RFP) to Medicaid managed care organizations interested in serving the Middle Region of the state. The current compensation arrangement. Each of the MCO’s cu
Slide 15: TennCare Medicaid Managed Care System
UAHC | TennCare Medicaid Managed Care System Tennessee Tennessee Medicaid Medicaid Managed Managed Care Care Vendors Vendors Western Region Middle Region Eastern Region Region TennCare Select 15 United American Healthcare Corp. | A full service managed care organization, serving Medicaid recipients
Slide 16: Tracking UAHC-TN Health Plan Membership
UAHC | Tracking UAHC-TN Health Plan Membership While several factors led to a decline in membership in recent quarters, the fiscal first quarter of 2007 marked the first increase in UAHC-TN membership in more than a year Factors Contributing to Membership Decline 1. Ongoing TennCare Reforms: 135,000
Slide 17: Section 2: Medicare Advantage & the “dual eligibles” Population
UnitedAmerican United AmericanHealthcare HealthcareCorporation Corporation Section2:2: Medicare Section MedicareAdvantage Advantage& &the the“dual “dualeligibles eligibles” ” Population Population 17 United American Healthcare Corp. | A full service managed care organization, serving Medicaid recipi
Slide 18: U.S. Medicare Spending Outlook
UAHC | U.S. Medicare Spending Outlook By 2030, the Congressional Budget Office projects that the U.S. will have more than twice as many individuals over the age of 65 as in 2000. This is a positive trend for UAHC. $800 $722 $665 $700 $606 $574 $600 $527 $491 $500 $437 $462 (billions) $385 $400 $332
Slide 19: The “Dual Eligibles” Opportunity in the U.S.
UAHC | The “Dual Eligibles” Opportunity in the U.S. U.S. U.S. Medicaid Medicaid Enrollment Enrollment (2003) (2003) Key Key Facts: Facts: DEs DEs in in the the U.S. U.S. (2003) (2003) 7.5 million dual-eligibles in the U.S. Adults Children 13.9 mil. The dual eligibles population consumes 28.2 mil
Slide 20: The “Dual Eligibles” Opportunity in Tennessee
UAHC | The “Dual Eligibles” Opportunity in Tennessee Spending Spending on on Duals Duals in in Tennessee Tennessee (2003) (2003) Key Key Facts: Facts: Duals Duals in in Tennessee Tennessee (2003) (2003) Premiums 292,000 dual-eligibles in Tennessee (all Prescribed Medicare regions combined) Drugs L
Slide 21: Presence in Western Tennessee
UAHC | UAHC Presence in Western Tennessee Western Western Tennessee Tennessee Population Population Approx. Approx. 15,000 15,000 Dual Dual Eligibles Eligibles in in UAHC-TN UAHC-TN member member population population Shelby Shelby County County Approx. Approx. 12,500 12,500 Dual Dual Eligibles Elig
Slide 22: Marketing to Dual-Eligibles In Shelby County
UAHC | Marketing to Dual-Eligibles In Shelby County Source: UAHC Health Plan of Tennessee 22 United American Healthcare Corp. | A full service managed care organization, serving Medicaid recipients since 1985
Slide 23: Quantifying the Opportunity
UAHC | Quantifying the Opportunity How much revenue does UAHC-TN anticipate will be derived from each dual eligible member served? At present, UAHC-TN anticipates being able to generate approximately $1,300 per member, per month. What Medical Loss Ratio (MLR) does the Company currently anticipat
Slide 24: The Medicare Medical Loss Ratio
UAHC | The Medicare Medical Loss Ratio During the past three years, comparable Medicare medical loss ratios for Healthspring (NYSE: HS), WellCare (NYSE: WCG) and Humana (NYSE: HUM) have ranged between 78% to 84%. At present, UAHC-TN anticipates an MLR of 86-88% in the first year of the SNP. Healthsp
Slide 25: Section 3: Financial Overview and Recent Results
UnitedAmerican United AmericanHealthcare HealthcareCorporation Corporation Section3:3: Financial Section FinancialOverview Overviewand andRecent RecentResults Results 25 United American Healthcare Corp. | A full service managed care organization, serving Medicaid recipients since 1985
Slide 26: Financial Overview
UAHC | Financial Overview Revenue Fully Diluted EPS $6,000,000 $0.30 $5,000,000 $0.25 Fully Diluted EPS $4,000,000 $0.20 Revenue $3,000,000 $0.15 $2,000,000 $0.10 $1,000,000 $0.05 $0 $0.00 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 Fiscal Quarter Source: SEC filings 26 United American Healthcare Corp.
Slide 27: Key Highlights - Fiscal 2007 First Quarter Results
UAHC | Key Highlights - Fiscal 2007 First Quarter Results Total revenue: $4.2 million Total operating expense: $3.8 million Income from continuing operations: $338,000 Fully diluted EPS from continuing operations: $0.04 Total membership at the end of 1Q:07: 116, 034 2Q:07 Financial Guida
Slide 28: Investment Highlights / Catalysts for Growth
UAHC | Investment Highlights / Catalysts for Growth New Medicare Advantage Opportunity: Serving the Special Needs Population (i.e. “dual eligibles”) in Western Tennessee Growth & Retention of Medicaid Plan Membership: Provide quality, cost-effective services to low-income, special needs populati
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