Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Apollo Medical Holdings — Investor Presentation (March 2022)
40 slides from Astrana Health's investor presentation, Mar 14, 2022
Slide 1: Apollo Medical Holdings March 2022
Apollo Medical Holdings March 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 Compa ny's business, financial con
Slide 3: Key acronyms
Key acronyms 3 ◦ ACO: Accountable Care Organization ◦ ACO REACH: Accountable Care Organization Realizing Equity, Access, and Community Health ◦ AIPBP: All - Inclusive Population - Based Payments ◦ APC: Allied Physicians of California IPA ◦ CMMI: Center s for Medicare and Medicaid Innovation Center ◦
Slide 4: ApolloMed investment highlights
ApolloMed investment highlights 4 1. 2. 3. 5. 6. 4. Proven model for 25+ years with demonstrable clinical outcomes across all populations • MA, Managed Medicaid, Commercial, ACA Exchange, Medicare FFS, etc. Industry - leading unit economics – growing revenue at 36% YoY (1) profitably while maintaini
Slide 5: ApolloMed at-a-glance
66% (1) Fewer hospital admits per 1,000 vs. benchmark $774M (3) TTM revenue $174M (2,3) TTM adj. EBITDA 15 - 20% Long - term EBITDA margin ApolloMed at - a - glance 5 71% (1) Fewer ER visits per 1,000 vs. benchmark 9,900+ Contracted physicians x x x x 1.2M+ Managed lives 20+ Payer partners Apollo Me
Slide 6: A growing national footprint addressing the needs of a diverse set of patients
39% 37% 18% 6% Medicare Medicaid Commercial & ACA Other Third Parties A growing national footprint addressing the needs of a diverse set of patients 6 Served by ApolloMed IPAs Served by ApolloMed’s APA ACO Planned expansion Geographic Footprint Revenue Breakdown by Member Population Full Year 2021 (
Slide 7: ApolloMed is a scaled player with a proven and profitable model
ApolloMed is a scaled player with a proven and profitable model 7 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) 238k (3) 227k (
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… 9 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 ca
Slide 10: Leading to a significant and growing market opportunity
… Leading to a significant and growing market opportunity 10 Source: CMS and HCP - LAN (2021) $920B+ $700B+ $340B+ Managed Medicare Commercial Medicaid Total TAM ~$2T
Slide 11: The current healthcare system makes it very difficult to succeed
Reporting Contracting Claims Data Aggre gation Billing Coding Hospitals Clinics Referrals Provider Group Authorization Clearinghouse IT Credentials PR Quality ? ? ? ? Labs Many More Payers Diagnostics However, the current healthcare system makes it very difficult to succeed
Slide 12: Platform overview
Platform overview 6) apollomed
Slide 13: ApolloMed acts as a single payer by taking on risk-based contracts
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 Processing Ops Automation Point of Care Support Analytics & Reporting Contracting
Slide 14: The ApolloMed ecosystem, powered by proprietary technology
The ApolloMed ecosystem, powered by proprietary technology, connects patients, providers, and payers 14 Provider Point of Care Application EHR (1) Data Patient Care Management ApolloMed Care Team CM/DM, PAC, SDoH , etc. (3) Communications Patient Management / RPM / Real - Time Clinical AI Care Mgmt
Slide 15: Proprietary point-of-care application is EHR-agnostic
ApolloMed Care Team Our proprietary point - of - care application is EHR - agnostic, enabling seamless transitions through our ecosystem and best - in - class care 15 Provider Point of Care Application Data Patient Care Management Clinic Setting CM/DM, PAC, SDoH , etc. (3) Communications Care Mgmt /
Slide 16: Automated payer tools reduce administrative burden for physicians
ApolloMed Care Team Automated payer tools reduce administrative burden for physicians and create operational efficiencies 16 Provider Point of Care Application EHR (1) Data Patient Care Management CM/DM, PAC, SDoH , etc. (3) Communications Care Mgmt / Workflow Tools Preventive Care Alerts & Analytic
Slide 17: Backend engine and data lake power provider solutions
ApolloMed Care Team Our backend engine and data lake power our provider solutions, allowing for workflow automation and data ingestion from dozens of sources 17 Provider Point of Care Application Data Patient Care Management Communications Care Mgmt / Workflow Tools ApolloMed Engine & Data Lake Prev
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 18 Provider Point of Care Application Data Patient Care Management ApolloMed Care Team CM/DM, PAC, SDoH , etc. (3) Communications Care Mgmt / Workflow Tools Apoll
Slide 19: Large 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 19 Better outcomes increase value - based incentive payouts and decrease utilization Machine learning models improve with more data Providers succeed in value - bas
Slide 20: Value-based care platform aligns incentives for all stakeholders
Our value - based care platform aligns incentives and benefits for all stakeholders 20 • 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 seniors would
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 22 45% 70% 76% 2018 2019 2020 Annual Wellness Visit Rate IPA 1 IPA 2 IPA 3 IPA 4 20% 41% 48% 2018 2019 2020 2% 8% 74% 2018 2019 2020 0% 34% 52% 2019 2020 2021 We have been able to significantly improve
Slide 23: Culturally competent care delivers clinical improvements in diverse populations
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 23 ER visits / 1K Medicare Advantage patients ER visits / 1K Managed Medicaid patients 423 453 266 380 210 210 IPA 1
Slide 24: ApolloMed IPAs show superior clinical outcomes
Overall, ApolloMed IPAs show superior clinical outcomes 24 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
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 25 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Medicare FFS ER Expense per 1,0
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 26 ApolloMed’s ACO consistently among top analogous ACOs in country: 2020 gross savings $ 2019 gross savings $ Gross savings (1) , 2017 - 2020 *Median gross savings for ACOs w
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 28 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 x Over 1.2 million members managed x Members in Medicare Advan
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… 29 Increased capitation due to contracting and provider network Better specialty network cost management Additional service lines Reduced outsourced MSO fees Impr
Slide 30: At an inflection point with multiple long-term growth levers
… And are at an inflection point with multiple long - term growth levers 30 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 pati
Slide 31: Financials
Financials 6) apollomed
Slide 32: Strong track record of membership and revenue growth
75 127 174 2019 2020 2021 2022E 1.0 1.1 1.2 1.6 - 2.0 2019 2020 2021 Near-term Goal Strong track record of membership and revenue growth, with robust margins 32 17% (in millions) ($ in millions) Members Revenue 561 687 774 2019 2020 2021 2022E 22 - 24% CAGR 10% CAGR ($ in millions) Adjusted EBITDA (
Slide 33: Profitable with attractive and differentiated unit economics
ApolloMed is profitable with attractive and differentiated unit economics 33 1 2 ApolloMed’s scale and e xtensive experience in value - based care result in better per member per month (PMPM) payments vs industry standard 1 Our large network of primary care and specialty providers, as well as our fo
Slide 34: We manage over $1.5B of gross medical spend
$774 $1,500 We manage over $1.5B of gross medical spend, yet recognize only a portion of the savings in revenue today 34 Illustration of ApolloMed’s Potential Revenue Scale ($M) While we managed over $ 1.5B in medical spend , powered by proprietary technology, we only recognize a portion of shared s
Slide 35: Conclusion
Conclusion 35 ApolloMed’s success and experience in value - based care position the company well to capture a growing $2T market across all membership populations With 25+ years of experience, our MSO has a proven track record of handling the challenges that prevent physicians from succeeding in val
Slide 36: Appendix
Appendix le) apollomed
Slide 37: 2022 Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA
2022 Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA 37 (1) See “Use of Non - GAAP Financial Measures” slide for more information ($ in millions) Low High Net income $33 $57 Interest expense, net 4 4 Provision for income taxes 17 31 Depreciation and amortization 18 19 EBITDA (1)
Slide 38: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA 38 ($ in millions) Year ended December 31, 2021 2020 Net income $49.3 $122.3 Interest expense 5.4 9.5 Interest income (1.6) (2.8) (Benefit from) provision for income taxes 28.5 56.1 Depreciation and amortization 17.5 18.4 EBITDA (1) $99.1 $2
Slide 39: Use of Non-GAAP Financial Measures
Use of Non - GAAP Financial Measures 39 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 40: Investor relations 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
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