CareSpan Health, Inc. · TSXV:CSPN
CareSpan Health — Investor Presentation (May 2022)
30 slides from CareSpan Health's investor presentation, May 2022
Slide 1: Corporate Overview: Integrated Digital Care
CORPORATE OVERVIEW Integrated Digital Care May 2022
Slide 2: Disclaimer
Disclaimer No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. This corporate presentation and the information contained herein (the “Presentation”) is proprietary and for authorized use only. It is being provided for the use of
Slide 3: Forward Looking Information
Forward Looking Information This Presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. This information and these statements, referred to herein as “forward looking statements”, are made as of the date of this Presentation or as of the date of
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Solving One of Healthcare’s Biggest Challenges – Shortage of Primary Care Practitioners • Focused on addressing a critical shortage in the US primary care market – expected shortage of primary care physicians to reach 55,000+ physicians and total physician shortage of by 2033*.
Slide 5: Who We Are
OUR VISION CareSpan Digital Care Platform CareSpan Provider Networks Who We Are We enable care delivery on our integrated digital care platform – in order to broaden access, reduce cost Primary, Chronic and Urgent Care Providers and improve clinical outcomes Behavioral Health Specialists 5
Slide 6: Seasoned Team Brings Wealth of Experience – Management Team
S E A S O N E D T E A M B R I N G S W E A LT H O F E X P E R I E N C E – M A N A G E M E N T T E A M • Former Global Head of EXL Healthcare (NASDAQ: EXLS) Rembert de Villa CEO & Vice Chairman • Head of Financial Services Cap Gemini E&Y • Columbia Business School (CSEP), Asian Institute of Management
Slide 7: Seasoned Team Brings Wealth of Experience – Board of Directors
S E A S O N E D T E A M B R I N G S W E A LT H O F E X P E R I E N C E – B O A R D O F D I R E C T O R S • 30+ years as an entrepreneur, operator and investor in the healthcare industry John Reardon Chairman • Former Interim CEO and Board Member of Teladoc (N:TDOC) • Board member of various healthca
Slide 8: Industry Challenge: 81M People in Shortage Areas
INDUSTRY CHALLENGE 81M People live in primary care Health Professional Shortage Areas (HPSAs) in the US Source: Heath Resources & Services Administration ; https://data.hrsa.gov/topics/health-workforce/shortage-areas 8
Slide 9: The Problem Is Getting Worse
THE PROBLEM IS GETTING WORSE • Primary care physician shortage of between 21,400 to 55,200 projected by 2033 • Shortage of speciality physicians of between 33,700 to 86,700 Primary Care projected by 2033 Physician Shortfall • However, after adjusting for unequal access to healthcare in will Continue
Slide 10: Nurse Practitioners Can Close the Gap
NURSE PRACTITIONERs (NPs) CAN CLOSE THE GAP More states are turning to NPs to help solve the Primary Care shortage. NPs can now practice independently in 26 states, and with physician collaboration in an additional 14 states NP Market Size ⦿ 267K NPs in the U.S. ⦿ 80K NPs practice in independent sta
Slide 11: The Opportunity – NPs Are Unsupported & Unprepared
T H E O P P O R T U N I T Y – N P s A R E U N S U P P O R T E D & U N P R E PA R E D Current Solutions do not meet the needs of NPs: ● Current solutions are fragmented and, for the most part, geared for large and more established practice groups/hospital systems ● Lack end-to-end workflow driven fun
Slide 12: Unleashing the NP with CareSpan Clinic-in-the-Cloud
U N L E A S H I N G T H E N P w i t h C A R E S PA N “ C L I N I C - in - t h e - C L O U D ” …so that NPs can focus on CareSpan provides an end-to- patient care and improve end solution … earnings ● Care Delivery Platform ● Revenue Cycle Management ● More time for patient care, ● Credentialing & en
Slide 13: Highly-Differentiated Care Delivery Platform
C A R E S PA N S O L U T I O N H I G H LY - D I F F E R E N T I AT E D C A R E D E L I V E R Y P L AT F O R M RPM Dashboard Integrated Remote Patient Monitoring Single Platform for In-person and Virtual Care Specialist Health Data Hub Patient at home PCP or remote e-Prescribing location Lab ordering
Slide 14: Competitive Positioning
COMPETITIVE POSITIONING Telemedicine Remote Patient Monitoring (RPM) Electronic Health Records (EHR) O u r “ C l i n i c - in - the - C l o u d ” b r i n g s a l l t h e ke y p i e c e s o f c a r e - delivery in a single integrated digital care platform. 14
Slide 15: Business Case for the Nurse Practitioner
C A R E S PA N VA L U E P R O P O S I T I O N BUSINESS CASE FOR THE NURSE PRACTITIONER Ty p i ca l P ra c t i c e I n co me Potential Practice Income with CareSpan $342K Chronic Care Management Remote Patient (CCM)* Monitoring New $155K Contracts Total Higher patient Revenue $197K $110K Improved thr
Slide 16: CareSpan Business Model – Attractive Recurring Revenues
C A R E S PA N B U S I N E S S M O D E L – AT T R A C T I V E R E C U R R I N G R E V E N U E S Revenue Split Revenue Split Basic Patient Consultations Value-Added Services Healthcare 30% provider (i.e. NP) All basic healthcare Gives CareSpan the ability services flow through to perform advanced Hea
Slide 17: Remote Patient Monitoring – Monthly Recurring Revenues
Remote Patient Monitoring – Monthly Recurring Revenues RPM – High Growth Opportunity • According to CB Insights: "Tech Trends to Watch in 2022", the Covid-19 pandemic has expedited the growth and need of this market to $30B in the United States as U.S. RPM Users (millions) hospitals and lockdowns ha
Slide 18: CareSpan's Growth Plan – Network Effect
C A R E S PA N ’ S G R O W T H P L A N – “ N E T W O R K E F F E C T ” 1 Expand the Network • Increasing # of NPs within CareSpan’s network directly expands the patient pool and the reach of the network - drives payor contracts • Increasing patients in the network drives an increasing pool for add-o
Slide 19: Demonstrated Business Model Traction
D E M O N S T R AT E D B U S I N E S S M O D E L T R A C T I O N Trailing Twelve Month Revenue (US$M)* $7.0 $6.0 $5.7 $5.8 $5.0 $4.8 Strong Customer Traction & US$M $4.1 $4.0 Business Model Validation $3.4 $3.0 $2.0 $1.0 $0.0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 *For each quarter, the previous 12-months of
Slide 20: Attractive Business Model Economics & Scalability
AT T R A C T I V E B U S I N E S S M O D E L E C O N O M I C S & S C A L A B I L I T Y Current Run Rate 2025 Potential # NPs 100 1000 Highly Scalable # Patients 40K 500K Business Model Annual $8M $100M*+ Revenue Target EBITDA 20% 20 * Revenues may differ if the number of contracted NPs or associated
Slide 21: Practitioner Acquisition Strategy
P R A C T I T I O N E R A C Q U I S I T I O N S T R AT E G Y 1 Dedicated Internal Network Development Team 4 Collaboration with NP Educational Institutions – Proprietary database of Nurse Practitioners – South Dakota State University – Repeatable Recruiting and Training Process – Western Governors U
Slide 22: Capitalization & Valuation
C A P I TA L I Z AT I O N & VA L UAT I O N Cap Table & Valuation Healthcare Comps
Slide 23: Long-Term Growth Potential: Broader Market Applicability
L O N G - T E R M G R O W T H P OT E N T I A L Home Care Software Designed for Broader Behavioral Market Applicability Health ⦿ Technology has been architected to interface NP – with third party EMRs in order to facilitate Primary, partnerships into adjacent verticals Chronic Physical and Urgent The
Slide 24: Long-Term Growth Potential
L O N G - T E R M G R O W T H P OT E N T I A L 1 Attractive Sector • Healthcare and healthcare IT relatively recession-resistant 2 Large Unmet Need, Significant Opportunity • Shortage in primary care and widening supply-demand gap for primary care physicians • Nurse Practitioners (NPs) have been lar
Slide 25: CareSpan Clinic in-the-Cloud
C A R E S PA N “Clinic in-the-Cloud” Tech-Enabled Service Full Suite, Integrated Next-Generation Delivery ● Tech first integrated digital ● Modular technology that is ● Focused on the new healthcare healthcare company, integrated to create a model, which is decentralized, including next-gen comprehe
Slide 26: Purchasers' Rights of Action in the Event of a Misrepresentation
Purchasers’ Rights of Action in the Event of a Misrepresentation In certain circumstances, purchasers resident in certain provinces of Canada, are provided with a remedy for rescission or damages, or both, in addition to any other right they may have at law, where a presentation and any amendment to
Slide 27: Purchasers' Rights of Action – Continued
Purchasers’ Rights of Action in the Event of a Misrepresentation – Continued In Manitoba, the Securities Act (Manitoba), in Newfoundland and Labrador the Securities Act (Newfoundland and Labrador), in Prince Edward Island the Securities Act (PEI), in Yukon, the Securities Act (Yukon), in Nunavut, th
Slide 28: Investment Risk Factors
Investment Risk Factors The risks presented below should not be considered to be exhaustive and may not be all of the risks that the Company may face. Additional risks and uncertainties not presently known to the Company may also impair the business and operations of the Company and if any of the fo
Slide 29: Investment Risk Factors - Continued
Investment Risk Factors - Continued Regulatory Risks – The adoption of new laws or the application of existing laws may decrease the demand for the company’s products and services, increase the company’s cost of doing business or otherwise have a material adverse effect on the company’s business, re
Slide 30: Thank You
Thank You