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Company Outlook April 1, 2014 Harry Fleming, CFO 1.

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Presentation on theme: "Company Outlook April 1, 2014 Harry Fleming, CFO 1."— Presentation transcript:

1 Company Outlook April 1, 2014 Harry Fleming, CFO hfleming@northstar-healthcare.com 1

2 2 Forward Looking Statements This presentation contains forward-looking information (within the meaning of applicable securities laws) relating to the business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results, economic or market conditions, and the outlook of or involving the Company and its business. Such forward looking information or statements are typically identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. Forward-looking information, including any financial outlooks, is provided for the purpose of providing information about management's expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions and expectations that the Company believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct and the forward-looking information, including the financial outlooks included in this Presentation, should not be unduly relied upon. Those assumptions and expectations are based on information currently available to the Company, including the historic performance of the Company's business. Such assumptions include anticipated financial performance, current business and economic trends, and business prospects and are subject to the risks and uncertainties which are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com.www.Northstar-Healthcare.comwww.sedar.com The Company’s management has approved the financial outlooks contained in this presentation.

3 3 Agenda I. Northstar II. ASC Industry III. Revenue/Growth _Programs IV. Financials V. M&A VI. Investment Highlights

4 4 Northstar

5 5 Northstar - Overview  Northstar partners strategically with physicians in the development and management of ASCs with the mission of providing superior medical care, increased patient satisfaction, lower costs for healthcare delivery and revenue enhancement through innovative marketing campaigns.  NHC is a publicly listed company on the Toronto Stock Exchange (Ticker: NHC), although all of its operations are located in the U.S.  Outstanding Shares to date are 43 Million  Management Team collectively owns approximately 20 Million shares  Institutional Ownership Approximately 25%  NHC is in the process of positioning the company so that it can effect a listing on a U.S. exchange such as the NASDAQ or the NYSE during the calendar year 2014. Upon the occurrence of such event NHC will also remain on the TSX as a dual listed company.

6 6 Outpatient Surgery Profits Bari, Spine, DPM Gyn, Pain Gen Surgery, Ortho Focus of Our Business  Most profitable part of the healthcare delivery system  Low costs if well managed  Profit margins can exceed 50% on a center level ASCs better serve surgeons, patients and payors Outpatient Surgery Inpatient Surgery X Rays Labs Medical Admissions Hospital Profits

7 7 Our Locations  Own and Operate 4 ASC’s: 2 in Houston 1 in Dallas 1 in Scottsdale  Manage Clinical Operations: Spine/pain management Bariatric Podiatry  Own and Operate 2 MRI and 1 Urgent Care Centers 7 Focus: Surgical excellence and maximizing efficient use of facilities and resources

8 8 KIRBY Surgical Center Houston Our ASCs  18 operating/procedure rooms  150+ surgeons on staff  Focus on high allowable and high margin outpatient surgical procedures  10,000+ cases per year  Close to major medical centers 8

9 9 ASC Industry

10 10 Ambulatory Surgery Centers (ASCs)  Outpatient surgery facilities  No overnight stay required  Lower cost structure to patient and insurance companies  Better patient outcomes and satisfaction  Higher physician satisfaction  Reduced patient risk factors 10 Average charges – 33% lower

11 11 ASC Industry Overview  Combined revenue of about $18 billion  Untouched by Federal Healthcare Reform Act  Fragmented market  50 largest companies generate 30% of the revenue  U.S. ASC industry includes about 3,500 companies that operate about 5,000 centers  75 independent ASCs in Houston; 350 in Texas  High growth expected over next two years, driven largely by patients seeking lower-cost alternatives to hospital care, better clinical outcomes and patient satisfaction, and physician steerage of patient care

12 12 U.S. Healthcare Trends  Growth in outpatient surgeries due to Technology and Technique  National number of ASC’s has quadrupled in 30 years  Over 60% of all U.S. surgeries are as outpatients More procedures suitable for ASCs 12

13 13 Revenue/Growth Programs

14 14 Revenue Growth Programs 14 Physician Contracting Accretive revenues for ASC Surgeon does not need to purchase equity Northstar’s ownership is not diluted Direct to Consumer Marketing Current Campaigns: NueStep SM (Podiatric nerve decompression) CuraSpine SM (Spine) Bariatrics Upcoming Campaigns: Peripheral Bariatric Campaigns

15 15 Direct to Consumer Marketing  Launched first campaign spring 2013  Marketing infrastructure Campaign production Call center Media components Online presence Analytics for campaign optimization  Clinical Management  Lead Management 15

16 16 Financials

17 17 Consolidated Revenue & Operating EBITDA* (000s) 17 *Operating EBITDA is net of non-controlling interest but not including the corporate expense

18 18 Growth Formula  Existing Centers Continue to optimize current marketing plans and introduce new marketing programs Project 20% annual growth in revenue  Seasonal Revenue: Revenue is seasonal where the first quarter revenues are significantly less than those of the 4 th quarter.  New Business Development Enter two new markets in 2015 and four markets in 2016; Leverage current marketing campaigns and other revenue generating programs Implement cost containment strategies with increased economies of scale Each market should target $1.9 - $2.5M EBITDA

19 19 M & A

20 20 Accelerated Growth Beyond Organic Future Acquisition Targets  Acquire ownership of local surgical hospital(s) to complement current marketing programs  A small-size ASC to service current in-network marketing leads  ASC(s) beyond current market area: San Antonio  Ancillary healthcare facilities to diversify revenues and develop referrals 20

21 21 Investment Highlights Northstar Healthcare = Significant growth opportunity Compelling value proposition for surgeons, patients, and payorsStrong position in high growth ASC industryProven track record of performanceAcquisition environment – accretive and accelerated market entryPlatform for scalable growth into multiple markets


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