Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Apollo Medical Holdings — Investor Presentation (January 2022)
43 slides from Astrana Health's investor presentation, Jan 12, 2022
Slide 1: Apollo Medical Holdings January 2022
Apollo Medical Holdings January 2022 Powered by Technology. Built by Doctors. For Patients.
Slide 2: Forward-looking statements
This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward - looking statements include any statements about the Company's business, financial condi
Slide 3: Key acronyms
Key acronyms 3 ◦ ACO: Accountable Care Organization ◦ AIPBP: All - Inclusive Population - Based Payments ◦ APC: Allied Physicians of California IPA ◦ CMMI: Center for Medicare and Medicaid Innovation ◦ CMS: Centers for Medicare & Medicaid Services ◦ DC: Direct Contracting ◦ DCE: Direct Contracting E
Slide 4: ApolloMed investment highlights
ApolloMed investment highlights 1. Proven model for 25+ years with demonstrable clinical outcomes across all populations • MA, Managed Medicaid, Commercial, ACA Exchange, Medicare FFS, etc. 2. Focus on aligning with and helping independent providers win 3. • Help them achieve the same scale and outc
Slide 5: ApolloMed at-a-glance
66% (1) Fewer hospital admits per 1,000 vs. benchmark $756M (3) TTM revenue $170M (2,3) TTM adj. EBITDA 15 - 20% Long - term EBITDA margin ApolloMed at - a - glance 71% (1) Fewer ER visits per 1,000 vs. benchmark 7,000+ Contracted physicians x x x x 1.2M+ Managed lives 20 Payer partners 5 Apollo Med
Slide 6: A growing national footprint addressing the needs of a diverse set of patients
40% 37% 18% 5% Medicare M e dic a id Commercial & ACA Other Third Parties A growing national footprint addressing the needs of a diverse set of patients Served by ApolloMed IPAs Served by ApolloMed ACO Planned expansion Geographic Footprint Revenue Breakdown by Member Population 6
Slide 7: ApolloMed is a scaled player with a proven and profitable model
ApolloMed is a scaled player with a proven and profitable model Business Model (1) Affiliate - provider model Affiliate - provider model Affiliate - provider model Staff / Clinic Model Affiliate - provider model Staff / Clinic Model Staff / Clinic Model Members Served 1.2M 760k (2) 237k (3) 211k (4)
Slide 8: Industry overview
Industry overview 6) apollomed
Slide 9: The U.S. healthcare landscape is rapidly moving towards value-based care
The U.S. healthcare landscape is rapidly moving towards value - based care… Fee - for - service Value - based care Lack of incentives to improve chronic health conditions Driving a trend of rapidly increasing medical costs Rising patient dissatisfaction with provider relationship and quality of care
Slide 10: Leading to a significant and growing market opportunity
… Leading to a significant and growing market opportunity Source: CMS and HCP - LAN (2021) $920B+ $700B+ $340B+ Managed Medicare Co m m erc ia l M e dic a id Total TAM ~$2T 10
Slide 11: The current healthcare system makes it very difficult to succeed
Reporting Con t r a c t i ng Claims Data Aggregation B i lling Co d i ng Ho s p i tals Clinics R e fer r al s P rovid e r Group Author i zat i on Clea r i n g hou s e IT Cr e dent i al s Quality ? PR ? ? ? L abs Many More Payers D i ag nos ti c s However, the current healthcare system makes it very
Slide 12: Platform overview
Platform overview 6) apollomed
Slide 13: ApolloMed acts as a single payer
ApolloMed acts as a “single payer” by taking on risk - based contracts, connecting health ecosystem participants, and holistically supporting the care process 13 Capitated Payments Utilization & Care Management Claims Pro c es s i ng Ops Automat i on Point of Care Support Analytics & Reporting Con t
Slide 14: The ApolloMed ecosystem, powered by proprietary technology
The ApolloMed ecosystem, powered by proprietary technology, connects patients, providers, and payers 14 P r o v ider Point of Care Application EHR (1) Dat a Patient Care Management ApolloMed Care Team Patient Management CM/DM, PAC, SDoH, etc. Communications Care Mgmt / Workflow Tools Eligibility & B
Slide 15: Proprietary point-of-care application is EHR-agnostic
Our proprietary point - of - care application is EHR - agnostic, enabling seamless transitions through our ecosystem and best - in - class care P r o v ider Point of Care Application Dat a Patient Care Management CM/DM, PAC, SDoH, etc. Communications Care Mgmt / Workflow Tools ApolloMed Care Team Ov
Slide 16: Automated payer tools reduce administrative burden
Automated payer tools reduce administrative burden for physicians and create operational efficiencies P r o v ider Point of Care Application EHR (1) Dat a Patient Care Management CM/DM, PAC, SDoH, etc. Communications Care Mgmt / Workflow Tools Preventive Care Alerts & Analytics ApolloMed Care Team O
Slide 17: Backend engine and data lake power provider solutions
Our backend engine and data lake power our provider solutions, allowing for workflow automation and data ingestion from dozens of sources P r o v ider Point of Care Application Dat a Patient Care Management Communications Care Mgmt / Workflow Tools A p o l l o M e d Engine & Data Lake Preventive Car
Slide 18: Care teams act on the uncovered insights
Our care teams act on the uncovered insights, enabling patients to receive seamless and complete care throughout their healthcare journey P r o v ider Point of Care Application Dat a Patient Care Management ApolloMed Care Team CM/DM, PAC, SDoH, etc. Communications Care Mgmt / Workflow Tools A p o l
Slide 19: Provider network and tech platform drive a virtuous cycle
ApolloMed’s large provider network and proprietary tech platform drive a virtuous cycle, powering growth and improving patient outcomes Better outcomes increase value - based incentive payouts and decrease utilization Machine learning models improve with more data Providers succeed in value - based
Slide 20: Value-based care platform aligns incentives for all stakeholders
Our value - based care platform aligns incentives and benefits for all stakeholders Communities • 300,000+ member outreach calls and surveys completed since 2019 to improve engagement and patient experience • 35,000+ patient visits to wellness center classes and/or seminars since 2018 • 99% of senio
Slide 21: Clinical and financial outcomes
Clinical and financial outcomes
Slide 22: Provider groups improve patient engagement after joining ApolloMed
Provider groups consistently demonstrate improvement in patient engagement after joining ApolloMed 45% 70% IPA 1 IPA 2 IPA 3 IPA 4 76% Annual Wellness Visit Rate 20% 41% 48% 20 1 8 20 1 9 20 2 0 2% 8% 74% 20 1 8 2 0 1 9 20 2 0 0% 34% 52% 20 1 9 20 2 0 20 2 1 We have been able to significantly improv
Slide 23: Culturally competent care delivers clinical improvements
532 597 505 498 174 174 IPA 1 IPA 2 As we expand geographically, culturally competent care has helped us deliver clinical improvements among diverse Medicare and Medicaid populations ER visits / 1K Medicare Advantage patients ER visits / 1K Managed Medicaid patients 423 453 266 380 210 210 IPA 1 IPA
Slide 24: ApolloMed IPAs show superior clinical outcomes
Overall, ApolloMed IPAs show superior clinical outcomes National RAF (2) Avg. 1.00 ApolloMed RAF (2) ’18 - ’21 0.90 - 1.05 Medicare Advantage inpatient statistics comparison Hospital admits per 1,000 ER visits per 1,000 Average length of stay (1) Inpatient bed days per 1,000 (1) Readmission rate (1)
Slide 25: Model works for both managed care and FFS populations
ApolloMed’s model and platform work for both managed care and FFS populations, helping move FFS care into a value - based care framework $0 $ 5 0 , 0 0 0 $ 1 0 0 ,0 0 0 $ 1 5 0 ,0 0 0 $ 2 0 0 ,0 0 0 $ 2 5 0 ,0 0 0 $ 3 0 0 ,0 0 0 $ 3 5 0 ,0 0 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 26: Our ACO has demonstrated sustainable success
Our ACO has demonstrated sustainable success, proving our ability to deliver savings and quality in value - based agreements ApolloMed’s ACO consistently among top analogous ACOs in country: 2020 gross savings $ 2019 gross savings $ Gross savings (1) , 2017 - 2020 104 17 ApolloMed ACO Median ACO* *M
Slide 27: Growth strategy
Growth strategy 6) apollomed
Slide 28: ApolloMed has a proven model built over 25+ years
ApolloMed has a proven model built over 25+ years Leading tech platform and time - tested playbook tried and true in a large and diverse market Existing national presence with a comprehensive strategy to deploy playbook in new markets Proven model for new markets and products Long - standing relatio
Slide 29: Creating additional value for existing membership base
For our existing membership base, we consistently create additional value as we grow by scaling revenue and driving down costs… Increased Additional Reduced Better specialty I m p r oved Total Shared with Net savings to capitation due service lines outsourced network cost quality of improvement phys
Slide 30: At an inflection point with multiple long-term growth levers
… And are at an inflection point with multiple long - term growth levers Multiple drivers of long - term growth of ~30 - 45% YoY +15% YoY membership growth in Covered California Consolidated and grew Bay Area IPA Medicare Advantage membership by 28% Top 5 insurer partnership yielded over 10k patient
Slide 31: Strong foothold in CA, 8 of top 25 counties
Although we have established a strong foothold in CA and are already in 8 of the top 25 counties by population in the U.S… Served by ApolloMed IPAs Served by ApolloMed ACO Planned expansion San Francisco Pl ace r Yolo Sacramento San Contra Joaquin San Mateo Santa Cruz Santa C l ara Costa A l am e da
Slide 32: Pursuing growth opportunities in the $2T market
… We are actively pursuing growth opportunities to capture greater share of the $2T market Provider services population includes: • Medicare , Medicaid , Commercial and Other Third Parties Potential membership in the State of California: • ~21M (1) Potential membership in CA counties currently serve
Slide 33: Financials
Financials 6) apollomed
Slide 34: Strong track record of membership and revenue growth
75 127 20 1 9 20 2 0 20 2 1 E 1.0 1.1 1.2 2.0 20 1 9 20 2 0 20 2 1 E N e ar - te r m Goal Strong track record of membership and revenue growth, with robust margins 561 687 2 0 1 9 20 2 0 20 2 1 E 15 - 17% CAGR 10% CAGR 67% growth Members Revenue Adjusted EBITDA (1) (in millions) ($ in millions) ($ i
Slide 35: Profitable with attractive and differentiated unit economics
ApolloMed is profitable with attractive and differentiated unit economics 1 2 1 ApolloMed’s scale and extensive experience in value - based care result in better per member per month (PMPM) payments vs industry standard 2 Our large network of primary care and specialty providers, as well as our focu
Slide 36: We manage ~$1.5B of gross medical spend
$755 $1, 500 We manage ~$1.5B of gross medical spend, yet recognize only a portion of the savings in revenue today Illustration of ApolloMed’s Potential Revenue Scale ($M) While we manage ~$1.5B in medical spend , powered by proprietary technology, we only recognize a portion of shared savings in GA
Slide 37: Conclusion
Conclusion ApolloMed’s success and experience in value - based care position the company well to capture a growing $2T market across all membership populations With 25+ years of experience, our MSO has a proven track record of handling the challenges that prevent physicians from succeeding in value
Slide 38: Appendix
Appendix 6) apollomed
Slide 39: 2021 Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA
2021 Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA 39 (1) See “Use of Non - GAAP Financial Measures” slide for more information ($ in millions) 2021 Guidance Range (a s of November 4, 2021) Low Hi g h Net income $81.0 $83.5 Interest expense, net 3.8 4 . 3 Provision for income t
Slide 40: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA 40 ($ in millions) 2019 2020 Net income $17.7 $122.3 Interest expense, net 2.7 6.7 Provision for income taxes 18 . 3 18 . 4 Depreciation and amortization 8 . 2 56 . 1 EBITDA $46.8 $203.5 Loss (income) from equity method investments 6 . 9 (3.
Slide 41: Reconciliation of TTM Net Income to TTM EBITDA and Adjusted EBITDA
Reconciliation of TTM Net Income to TTM EBITDA and TTM Adjusted EBITDA 41 (1) See “Use of Non - GAAP Financial Measures” slide for more information; (2) Trailing Twelve Months 2021 ended September 30, 2021 ($ in millions) Q4 2020 Q1 2021 Q2 2021 Q3 2021 TTM 2021 (2) Net income $12.9 $14.4 $59.5 ($5.
Slide 42: Use of Non-GAAP Financial Measures
Use of Non - GAAP Financial Measures 42 This presentation contains the non - GAAP financial measures EBITDA and adjusted EBITDA, of which the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles (“GAAP”) is net (loss) income. These mea
Slide 43: For inquiries, please contact
For inquiries, please contact: ApolloMed Investor Relations (626) 943 - 6491 investors@apollomed.net Carolyne Sohn, The Equity Group (415) 568 - 2255 csohn@equityny.com
Apollo Medical Holdings — Investor Presentation (January 2022) on 6ix