Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Day (September 2022)
57 slides from Veradigm's investor day presentation, Sep 28, 2022
Slide 1: Investor Day September 28, 2022
Investor Day September 28, 2022 Allscripts/Veradigm Exhibit 99.1
Slide 2: Forward-Looking Statements
Allscripts| Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the d
Slide 3: Introduction - Rick Poulton, CEO
RICK POULTON Chief Executive Officer Introduction
Slide 4: Agenda
Agenda Tom Langan PRESIDENT & CHIEF COMMERCIAL OFFICER Jonathan Malek SVP & GM, PROVIDER Jay Bhattacharyya SVP & GM, PAYER Stuart Green SVP & GM, LIFE SCIENCE Veradigm Value Provider Base Foundation Payer Connectivity New Perspectives for Biopharma Rick Poulton CHIEF EXECUTIVE OFFICER Introduction L
Slide 5: Our Mission
Our Mission At Veradigm we are transforming health, insightfully PAYER BIOPHARMA PROVIDER Veradigm is a healthcare technology and analytics company spanning across the three pillars of healthcare Veradigm and the Veradigm Network are different because of our connectivity, scale, and expertise which
Slide 6: Veradigm Value
Veradigm Value Tom Langan President & Chief Commercial Officer
Slide 7: Growth Leaders
Growth Leaders Stuart Green Jonathan Malek Jay Bhattacharyya SVP & GM LIFE SCIENCE SVP & GM PROVIDER SVP & GM PAYER Tom Langan PRESIDENT & CHIEF COMMERCIAL OFFICER Ray Joske VP MARKETING Bruce Lucarelli VP & CHIEF DATA OFFICER EXPERIENCE Executive Leadership, Commercial, and Sales Positions EXPERIEN
Slide 8: Market Trends Accelerate Our Growth Strategy
Market Trends Accelerate Our Growth Strategy MOVE TO OUTPATIENT AND AMBULATORY CARE CHANGING INTEROPERABILITY STANDARDS INCREASE IN HEALTHCARE SPENDING DYNAMIC REGULATORY ENVIRONMENT GROWTH STRATEGY Leverage Convergence of Healthcare Market and the Transition to Value-Based Care Grow Provider Networ
Slide 9: Veradigm Journey Starts with the Provider Footprint
Veradigm Journey Starts with the Provider Footprint 2 EHRs Targeted at Different Tiers of Practice Complexity Industry-leading Practice Management / Clearinghouse Solution Virtual Care Enablement / Patient Engagement Revenue Cycle Management Services Partner with Over 330K Healthcare Providers via t
Slide 10: The Veradigm Formula
The Veradigm Formula Other Practice Solutions = 60K Proprietary Registries = 20K Healthcare IT Partners = 170K Unique Ability to Drive Efficiencies; Enhance Decision Making at the Point of Care Scale Workflow Connectivity Analytics Collectively, serve 330K+ HEALTHCARE PROVIDERS & ~180M PATIENTS via
Slide 11: Veradigm Network Growth Model
Veradigm Network Growth Model Veradigm Network Value = COLLECTIVE SCALE + DATA + WORKFLOW CONNECTIVITY 330K+ HEALTHCARE PROVIDERS1 19.8M PATIENT ENGAGEMENT2 1M+/mo. LAB & RADIOLODY RESULTS5 180M+ DISTINCT PATIENTS WITH CLINICAL ACTIVITY4 1.7K SAAS CLIENTS + 73 SPECIALTIES IN ALL 50 STATES3 97% FIRST
Slide 12: Competitive Market Landscape
Competitive Market Landscape Provider 1-5 Independent Practice Segment Larger Practice Segment ePrescribe Life Sciences Real-World Data Real-World Evidence Digital Health Media Payer Payer Analytics + eChart Courier PayerPath Platform
Slide 13: Veradigm's Competitive Advantages
Veradigm’s Competitive Advantages Patented Risk Adjustment Methodology with dynamic intervention planning empowers Payers to identify actionable interventions Easy-to-use, intuitive Clinical, Financial, Revenue Cycle and Patient Engagement solutions designed for Independent Providers Scalable access
Slide 14: Provider
€3 veradigm. | Provider
Slide 15: The Provider Network = Veradigm Foundation
The Provider Network = Veradigm Foundation 2 EHRs Targeted at Different Healthcare Provider Audiences Industry-leading Clearinghouse Solution1 & Practice Management Virtual Care and Patient Engagement Revenue Cycle Management Services Enabling the transition to Value Based Care Focus our Growth Thro
Slide 16: Veradigm Provider Solutions
Enterprise Platform Patient Engagement Practice Mgmt. & Rev Cycle Mgmt. Veradigm Provider Solutions Cloud EHR serves over 21,000 small practices Professional EHR serves over 2,100 complex practices 850 healthcare services organizations $100B processed charges Growth market among Cloud EHR practices
Slide 17: How Does Provider Power Veradigm?
How Does Provider Power Veradigm? Veradigm Provider Media Payer Integrations Point-of-care solutions Financial Data Consent, batch & real-time APIs Clinical Data Veradigm Payer Veradigm Life Sciences 850 HEALTHCARE SERVICES ORGANIZATIONS 21,000 SMALL PRACTICES 2,100 COMPLEX PRACTICES
Slide 18: Our Focus
Our Focus DISRUPT AT THE EDGE GROW THE CORE TRANSFORM THE FOUNDATION New Business Channel Partners Enterprise solutions Digital evolution of business processes and operations Transition all products to the cloud Expansion Business RCM for small to medium sized practices Expand commercial access to t
Slide 19: A Foundation of Experience & Scale
A Foundation of Experience & Scale Verifications/Transformations ePrescriptions Including EPCS Claims Transactions 1B+ 1B+ 953M+ 600M+ 400M+ Rev Cycle Transactions Transactions Eligibility and medication history Veradigm Community Direct Messaging eAuthorizations 53M+ 10M+ 730K+ Real Time Benefit In
Slide 20: Veradigm Network in Action
Veradigm Network in Action CASE STUDY Deeply integrated into the clinical workflow Reducing 2-6 months integrations down to 24 hours Services for the small practice that “just work” RCM VBC Lab Network Practice Solutions Enabling customer expansion
Slide 21: Payer
Payer
Slide 22: Payer Data & Analytics Large Addressable Market
Payer Data & Analytics| Large Addressable Market Veradigm Current $3.3B Addressable Payer Data and Analytics Market Segment Expected to Grow 20%+ Annually Total Opportunity Payer Spend on Software and IT Services in Healthcare ~$19B Current Veradigm Opportunity ~$3.3B Payer Solutions Growth Drivers
Slide 23: Veradigm Payer
100+ health plan clients 9 of top 20 health plans 30M+ members across the US Veradigm Payer Our insightful solutions lead to better patient outcomes, increased revenue, and lower costs Our Payer focused solutions connect to more than 275K Providers across the US Solutions address Medicare Advantage,
Slide 24: Veradigm Payer-Provider Collaboration Platform
Veradigm Payer-Provider Collaboration Platform Simplifies Provider & Payer collaboration through analytics and better point-of-practice workflows Health Plan Analytics Platform Clinical Data Exchange Submissions & EDI Clearinghouse Provider & Member Engagement
Slide 25: End to End Payer Solutions
End to End Payer Solutions Claims, CMS, and Patient Data > Payer Provider Analytics < Charts, Parsed Data Files < Coding Output File + Charts < EHR Data Gap Alerts > < Gap Closure Data < Charts Risk Gaps > Quality Gaps > Provider Engagement Gap Alerts > < Gap Closure Data FHIR/API < Parsed EHR Data
Slide 26: Power of the Platform in a Scaled Network
Power of the Platform in a Scaled Network Platform Scale enables Veradigm to engage providers and patients in a way that moves the needle for health plans nationwide Gaps In Care intervention messaging to maximize Quality and Risk Adjustment program value TOTAL PROVIDERS IN US: ~1.1 million TOTAL VE
Slide 27: Observed Results from Current Clients
Observed Results from Current Clients 4:1 Return +2.6M 7:1 Return The Impact of One End-to-End Solution On Improved Identification of Actionable, Impactful Opportunities via Patented RA Solutions including Dynamic Planning x x Risk Adjustment Quality Provider Activation On Provider Engagement Impact
Slide 28: Growth Initiatives
Growth Initiatives Net New Health Plan relationships Expand Provider engagement capabilities Introduce New Patient/Member engagement capabilities EHR Partnerships: Long Tail Organic EHR provider growth Expand Provider network Cross-sell/ Up-sell White space
Slide 29: Life Science
3 veradigm. | Life Science
Slide 30: Veradigm Life Science Overview and Solutions
Provide data and registry information (ACC) as standalone or combined data sets We perform registry and study implementation services via our RWE Consulting group Digital Health Media serves agencies and direct sponsors by providing ads via our Provider platforms Veradigm Life Science OVERVIEW SOLUT
Slide 31: Rich Real-World Data at the Point-of-Care
Derived from Veradigm Network ambulatory EHRs: One of the largest deidentified EHR datasets Extensive nationally distributed patient population from a wide range of practice sizes Supports patient longitudinal analysis, stand-alone or linked to other real-world data sources Rich Real-World Data at t
Slide 32: Veradigm Real-World Data Defined
Veradigm Real-World Data Defined Veradigm Real World Data Ambulatory EHR Data 180M+ Patients* Claims & Remits 300M Claims** Registries 20M Patients* 49M-63M Linked to closed/open claims Cardiology 9M Patients* Metabolic 11M Patients* 2.5M Linked to closed claims 2.7M Linked to closed claims *5 years
Slide 33: Reach Providers at the Point-of-Care
Reach Providers at the Point-of-Care *The Practice Fusion EHR displays advertisements in an iframe window that is separate and distinguishable from the clinical and practice management workflow within the EHR. No biopharma or device advertisements appear during the prescribing workflow consistent wi
Slide 34: EHR Leader in Digital Media – Point of Care Messaging
EHR Leader in Digital Media – Point of Care Messaging Biopharma companies working with Veradigm for point-of-care media Years delivering multi-platform point-of-care media Campaigns successfully executed over 11 years Ad impressions served since 2011 20B+ 100+ 11+ 1K+
Slide 35: Moderna Real-World Evidence
Moderna Real-World Evidence Evaluating Vaccine Effectiveness CASE STUDY Outcomes Situation Approach Enabling and empowering Moderna to conduct internal analyses with data assets Designing and implementing an FDA-mandated safety program Leverage the Veradigm Cardiovascular Registry, as well as the Pr
Slide 36: Financial Update
Financial Update Leah Jones, Chief Financial Officer
Slide 37: Veradigm Revenue Performance
Veradigm| Revenue Performance
Slide 38: Veradigm Margin Performance
Veradigm| Margin Performance 1 See reconciliation of non-GAAP metrics in the appendix of this presentation.
Slide 39: Veradigm Provider Growth Levers
Veradigm| Provider Growth Levers New Client Wins Expand Wallet Share Value-Based Care Partnerships Market Consolidation 1 See reconciliation of non-GAAP metrics in the appendix of this presentation.
Slide 40: Veradigm Payer & Life Science Growth Levers
Veradigm| Payer & Life Science Expand Data Sources Broaden Existing Partnerships Increase Media Footprint Grow Health Plan Partnerships Growth Levers 1 See reconciliation of non-GAAP metrics in the appendix of this presentation.
Slide 41: Free Cash Flow % of Revenue Accelerates
Allscripts| Free Cash Flow % of Revenue Accelerates 1 See reconciliation of non-GAAP metrics in the appendix of this presentation.
Slide 42: Simultaneously Reducing Share Count & Leverage
Allscripts| Simultaneously Reducing Share Count & Leverage 1 See reconciliation of non-GAAP metrics in the appendix of this presentation.
Slide 43: 2022 Guidance Reaffirmed
Allscripts| 2022 Guidance Reaffirmed 6% - 7% Veradigm Revenue Growth YOY $110M - $120M Allscripts Free Cash Flow 10% - 15% Veradigm Adjusted EBITDA Growth YOY
Slide 44: Closing Comments
Closing Comments Rick Poulton Chief Executive Officer
Slide 45: Q&A
Q&A
Slide 46: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 47: Non-GAAP Segment Reconciliation (Veradigm Segment)
Allscripts| Non-GAAP Segment Reconciliation (Veradigm Segment)
Slide 48: Non-GAAP Segment Summary
Allscripts| Non-GAAP Segment Summary
Slide 49: Non-GAAP Reconciliations (Provider and Payer & Life Sciences)
Allscripts| Non-GAAP Reconciliations (Provider and Payer & Life Sciences)
Slide 50: Non-GAAP Summary (Provider and Payer & Life Sciences)
Allscripts| Non-GAAP Summary (Provider and Payer & Life Sciences)
Slide 51: Non-GAAP Reconciliations (Free Cash Flow)
Allscripts| Non-GAAP Reconciliations (Free Cash Flow & Free Cash Flow % of Revenue)
Slide 52: Non-GAAP Reconciliations (Diluted Shares Outstanding)
Allscripts| Non-GAAP Reconciliations (Non-GAAP diluted shares outstanding)
Slide 53: Non-GAAP Reconciliations (Net Leverage)
Allscripts| Non-GAAP Reconciliations (Net Leverage)
Slide 54: Non-GAAP Reconciliations (Adjusted EBITDA)
Allscripts| Non-GAAP Reconciliations (Adjusted EBITDA)
Slide 55: Non-GAAP Financial Measures
Allscripts| Non-GAAP Financial Measures Allscripts reports its financial results in accordance with U.S. generally accepted accounting principles, or GAAP. To supplement this information, Allscripts presents non-GAAP bookings, gross profit, income from operations, Adjusted EBITDA, Adjusted EBITDA ma
Slide 56: Non-GAAP Financial Measures: Acquisition-Related Amortization
Allscripts| Non-GAAP Financial Measures Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. Allscripts excludes acquisition-related amortization ex
Slide 57: Non-GAAP Financial Measures: Asset Impairment Charges
Allscripts| Non-GAAP Financial Measures Asset Impairment Charges. Asset impairment charges reflect non-cash charges related to the write-offs of deferred costs related to our private cloud hosting operations. Management also believes that non-GAAP gross profit, income from operations, effective inco
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