Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Apollo Medical Holdings — Cantor Fitzgerald Global Healthcare Conference October 2019
25 slides from Astrana Health's conference presentation, Oct 3, 2019
Slide 1: Cantor Fitzgerald Global Healthcare Conference October 2019
Cantor Fitzgerald Global Healthcare Conference October 2019
Slide 2: Forward Looking Statements
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 about Apollo Medical Holdings, Inc. and its subsidiaries and variab
Slide 3: ApolloMed Team
3 ApolloMed Team Kenneth Sim, M.D. Executive Chairman Co - Chief Executive Officer Thomas S. Lam, M.D, M.P.H. Co - Chief Executive Officer President Eric Chin Chief Financial Officer
Slide 4: Investment Highlights
4 Investment Highlights Patient - centric, physician - led organization focused on outcomes - based medical care Multiple growth avenues in a large and growing market driven by the shift to value - based care Primary care and specialist physician networks that create market alignment and care manage
Slide 5: Introduction to ApolloMed
5 Introduction to ApolloMed Note: IPA = Independent Practice Association. FFS = Fee - For - Service. 1) Share price as of September 27 th , 2019 . 2) Excluded MSA signed October 1, 2019 as agreement is effective January 1, 2020. 3) Last twelve months revenue Includes pro forma revenue of Alpha Care
Slide 6: Established Market Presence Throughout California
6 San Bernardino Riverside San Diego Los Angeles Kern Tulare Kings Fresno Madera Santa Cruz San Mateo Yolo Placer Sacramento San Joaquin Established Market Presence Throughout California Diversified Presence Throughout California Counties Served ▪ Strong market position in key markets with density i
Slide 7: Key Business Operations / Services
7 Key Business Operations / Services Description Representative ApolloMe d Offering Revenue Model Independent Practice Association ▪ Network of primary and specialty physicians ▪ Delivers care under risk - bearing and capitated arrangements with payors ▪ Receives risk pool settlements and incentive
Slide 8: Organizational Overview
8 Note : Apollo Care Connect , a wholly - owned subsidiary of ApolloMed, is not depicted in the organization chart. CMS = Centers for Medicare and Medicaid Services. VIE = Variable Interest Entity . Organizational Overview Unconsolidated entities Other Entities ▪ One of the largest IPAs in the U.S.
Slide 9: Apollo Medical – Key Recent Accomplishments
9 Apollo Medical – Key Recent Accomplishments December 2017 Closed merger with ApolloMed and NMM May 2019 APC completed acquisition of Alpha Care August 2019 APC completed acquisition of Accountable Healthcare IPA September 2019 Completed APC transaction (including $290mm credit facilities)
Slide 10: Leading Patient-Centric Value-Based Care Provider
10 Leading Patient - Centric Value - Based Care Provider Note: SNF = Skilled Nursing Facility. ApolloMed is embedded within the healthcare ecosystem, offering a “ single - payor ” model to physicians and patients via its horizontally integrated structure and partnerships ▪ ApolloMed manages the care
Slide 11: Unique Model to Attract and Retain Physician Partners
11 2015 2016 2017 2018 ▪ Combination of clinical, administrative, and technology capabilities enable physicians to focus on patients while retaining a greater share of their capitated income stream ▪ Flexible physician schedules promote work - life balance ▪ Focuses on high quality care, offering su
Slide 12: Horizontal Integration Strategy Drives "Single-Payor" Model
12 Horizontal Integration Strategy Drives “ Single - Payor ” Model By horizontally integrating across the healthcare ecosystem, ApolloMed creates a virtual “ single - payor ” model to provide high quality, low cost healthcare for its members Reduced H ea l t h ca r e Costs Improved P op u l a t i on
Slide 13: ApolloMed's Technology Platform – Apollo Care Connect
13 ApolloMed’s Technology Platform – Apollo Care Connect ® ▪ Emphasis on chronic care management and high - risk patient management ▪ Integrates with and captures clinical data from multiple EHRs, wearables and other tracking devices ▪ Flexible platform allows for easy integration with other interna
Slide 14: Apollo Care Connect Technology Snapshots
14 Apollo Care Connect ® Technology Snapshots
Slide 15: ApolloMed Delivers High Quality Outcomes
15 80.0% 86.3% APC IPA National ApolloMed Delivers High Quality Outcomes Cloud Based IT Platform Hospitalists A CO IPA Shift T owards Value - Based Care Key Metrics Patient Focused , Physician Centric Senior Inpatient Bed Days / 1,000 Patients 603 864 1,706 APC Local Competitor Medicare FFS * Senior
Slide 16: Experienced Management Team with a History of Success
16 Experienced Management Team with a History of Success Name Title Year Joined Apollo Med Background Kenneth Sim, M.D. Executive Chairman and Co - CEO 2006 ▪ Also serves as Chairman of APC ▪ Holds bachelor’s degree from UCLA and M.D. from Loma Linda University School of Medicine and the Autonomous
Slide 17: Multiple Strategies to Drive Growth
17 Multiple Strategies to Drive Growth x Continue to invest in technology capabilities to further drive network management and clinical care capabilities x Expand population health management capabilities including member engagement, preventive care and data analytics x Leverage population health ca
Slide 18: Financial Overview
Financial Overview a © apollomed
Slide 19: Historical Financial Profile
19 2006 2014 06/30/2019 Historical Financial Profile Simplified Structure Post - APC Transaction (2018) Historical Revenue Consistent APC Membership Growth Contracted Physicians $306 $356 $520 $499 $18 $306 $356 $520 $517 2016 2017 2018 LTM 06/30/2019 $11 $61 Actual (Pre-APC) Pro Forma for APC Trans
Slide 20: Historical Financial Profile (cont.)
20 $124 $96 $18 $35 $149 Q1'18 Q1'19 Historical Financial Profile (cont.) ($ in millions) Recent Revenue Trends Q1 Year Over Year Performance Q2 Year Over Year Performance $123 $130 $23 Q2'18 Q2'19 $153 ▪ Capitation revenue decrease due to delayed commencement by the CMS of APA ACO’s 2019 Next Gener
Slide 21: ApolloMed Sources of Revenue
21 1% 4% 9% 9% 77% $226 June 2019 YTD Note: Not pro forma for Alpha Care transaction. ApolloMed Sources of Revenue (YTD 06/30/2019) ▪ Capitated fees for medical services via direct arrangements with managed care providers − Typically pre - paid monthly based on number of enrollees ▪ Full risk capita
Slide 22: Current ApolloMed Valuation
22 Current ApolloMed Valuation Note: See Appendix for Adjusted EBITDA reconciliation. Balance sheet data as of 6/30/2019, pro forma for the credit transacti on closed 09/11/2019. (1) Fully diluted shares outstanding includes holdback shares of 1.5mm and options and warrants of 3.8mm assumed exercise
Slide 23: Foundations of Shareholder Value
23 Foundations of Shareholder Value Financial Parameters Key Business Attributes x Organic growth and acquisitions Revenue Growth x Ability to scale with future IPAs EBITDA Margin Expansion x Managed lives increased from ~800K to over 1mm Managed Lives Growth x Acquired two IPAs since May 2019 IPA G
Slide 24: Appendix
Appendix ee © apollomed
Slide 25: EBITDA Reconciliation
1 EBITDA Reconciliation ($ in millions) *Last Twelve Months Note: Excludes acquisition of Alpha Care. Use of Non - GAAP Financial Measures This presentation contains non - GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (i.e. EBITDA). These measures
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