maxim 8 14-2012
DESCRIPTION
Presentation on 8/14/2012 to Maxim on Roadmap and Connect VisionTRANSCRIPT
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
How we Segment the Market
Who buys, what's important to them
• Enterprise Clients• Multi-regional presence • Has multiple Lines of Business • Multiple Staffing Services • Front-end process centralization• Back-end process centralization
• Regional Clients •Multi-locations in a given market region•May have Multiple Lines of Business •May provide Multiple Staffing Services •Back-end process centralization
• Local Clients •Client has a 1 or 2 offices in a MSA•Focused on 1 or 2 Lines of Business•Focused on a single Staffing Service
and what they offer
• Lines of Business • Per Diem Nurse• Nurse Travel• Allied• Locums
• Staffing Services• Per Diem Staffing• Long-term Staffing• Permanent Placement• MSP
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© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
Client Segments
Enterprise
31 Agencies
2 % of Market
40% of Revenue
Regional
361 Agencies
22 % of Market
30% of Revenue
Local
1266 Agencies
76% of Market
30% of Revenue
Market trends favor Enterprise Clients and should be out Focus
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
Lines of Business Segments
Per Diem Nurse Nurse Travel Allied Locums
Commercial Market Leader
Software needs to increase Nurse Travel
and Allied Market share are the same
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
Staffing Service Segments
Per Diem Staffing
Long-term Staffing
Permanent Placement MSP
Daily Shifts Travel and Local Contract
Fee for Service Agency owned VMS
Enterprise Clients need Solutions that manage all Service Segments
Largest Service Segment of Enterprise Clients we need
to pursue
Leading Trend of Enterprise Clients
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
Recovering Market
Industry Revenue (Billions)
2008 2009 2010 2011 2012 20130.00
2.00
4.00
6.00
8.00
10.00
12.00
2.401.20 0.90 1.13 1.26 1.35
3.71
2.602.50
2.65 2.78 2.87
1.82
1.801.80
1.962.10 2.27
3.47
2.602.40
2.662.98
3.28
Nurse Travel Nurse Per Diem Locum Allied
At RiskTherapy Cap Legislation.
• Market tanked in ’09 due to economy and uncertainty of Healthcare Reform. Workers sought security in fulltime employment
• Nurse Travel & Allied recovering fastest due to increased FTE employment confidence and Health Systems willingness to make long-term contingent staffing commitments
11%
8%
5%
14%
2010 - 13 CAGR
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved. 6
Our 2011 Est. Share by Line of Business Segment
API4%
Competition96%
2011 Allied
API40%
Competition60%
2011 Nurse Per Diem
API12%
Competition88%
2011 Nurse Travel
API1%
Competition99%
2011 Locum
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
Enterprise Agency Growth• M&A Activity projected to continue• 16 Agencies have 50% Market Revenue• API has only 2 of the Top 16 Agencies• MSP Services
Travel Nurse and Allied Market leading Rebound• Increase in Open Orders• Increase in Bill Rate & Margins• Functionality Commonality
Healthcare Employment• Shortage Nurses > 700K & Family Physicians > 40K • Nursing FTE Quits up by 12% y/y (BLS)• 16 Million Jobs with average turn over rate of 13.5%
Focus on Quality• ACOs/Reimbursement based on quality• Joint Commission Accreditation Required to Play• Joint Commission Credential, HR and Reporting measures
Agency Market Trends
• Effective human capital management tools & services that help providers attract talent, better develop and utilize current staff could be a powerful weapon in the coming battle for talent.
• Addressing Travel Nurse market needs is strategy that will improve our Enterprise and Allied position as well
• API Healthcare Connect is timing well with market MSP trends
• Solutions that promote and measure quality outcomes will have a competitive edge over those that don’t.
New $$ Market Entry
Barrier
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
1-3 Year Vision
Retain Current and Grow Per Diem Market Share • Order Fulfillment Features like Shift SMS Notification and Mobile Functionality• Enhanced Compliance• Joint Commission DNR and Reporting• Orientation Management
API Healthcare Connect MSP Solution• Replace Client Access• Enhancements to CSS VMS Module
Increase Travel and Allied Share• CRM• Flexible Order and Assignment Contract Structure• Customizable Rate Sheet• Enhanced Housing and 3rd Party Vendor Cost Mgt.
Clinical Content Product for API Healthcare• Quicker Content Creation and Validation
Independent Recruiting Solution for Healthcare Industry .net Connect Contingent Staffing and Recruiting Solution Rewrite with focus
addressing Enterprise Gaps
GOLDEN RULEEach side of the Connect MSP equation must work SOLEY in ONE solution
© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
Connect Product Plan
Connect R1
• Per Diem Order Management
• Long-term Order Management
• Worker Profile, Credential and Document Sharing
• Integration with CSS
• User Management• Health System
Reporting
Connect R2
• Connect R1 plus• Integration with API
TASS• Integration with API
ShiftSelect• CSS Connect API
TASS Integration
Connect R3
• Connect R1 & 2 Plus
• Compliance• Vendor
Management and Order Distribution Control
• Vendor Reporting• Reverse Invoicing
Replace Client Access & Enhance VMS
Replace CSS VMS Module
Increases Health System Adoption and
Reduces Agency Costs