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  • Features that improve Nurse Travel have a windfall effect on Allied and Locums. IE: CRM Funcationality
  • As it is starting October 1, claims for patients who meet or exceed $3,700 in therapy expenditures will be subject to a manual medical review. This alone could slow growth.
  • We processed 1.2 B in Revenue
  • Based upon % of Revenue Processed in Solutions vs. Industry Revenue size in each LOBRecession easies will increase quits (DOL) 12%
  • Need to break these up by Client Segment
  • Estimated based upon 1.2 billion in Revenue processed by among the markets aboveNurse Per Diem: 80%Nurse Travel: 10%Locum: 1%Allied: 9%
  • Single code base30 sec to <1 sec
  • Healthcare and IT Staffing are the most desired targets for M&A activity
  • I need ARSPricing strategy from WOJ and Kyle for non-The Bureau of Labor Statistics has released its 2010-2020 employment projections. Not surprisingly, healthcare and related services dominate the list.
  • Customizations we do improve Core and get us further down the road to Enterprise Solution
  • Mike: I have strategic choices we need to implement near term for retention purposes, and to make us more competitive in all client segments. How would you monetize that opportunity? Or does this type of choice just go on the roadmap?
  • Essentially All Providers Solutions in One and more…..

Agency market Agency market Presentation Transcript

  • Agency Solutions & Market © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Strategic Plan Situation Summary •Market Update •Strategic Issues & Opportunities Strategic Choices •Vision •Where Will We Compete? (Target Markets) •Who Must We Beat? (Competitors) •How Will We Win? (Value Strategy) •How Will We Grow? (Growth Strategy) Strategic Roadmap •What Will We Achieve? (Strategic Objectives) •What Must We Do? (Strategic Roadmap) •Summary of Growth Initiatives Financials •Pro Forma •Risks •Investment Requirements © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • How we Segment the Market Who buys, whats and what they offer important to them • Enterprise Clients • Lines of Business 1000 • Multi-regional presence • Per Diem Nurse • Has multiple Lines of Business • Nurse Travel Features Benefit Flow • Multiple Services • Allied • Front-end centralization • Locums User Headcount • Back-end centralization • Services 100 • Regional Clients • Per Diem Staffing •Multi-locations in a given market region • Long-term Staffing •May have Multiple Lines of Business • Permanent Placement •May provide Multiple Services • MSP •Back-end centralization • Local Clients 10 •Client has a 1 or 2 offices in a MSA •Focused on 1 or 2 Lines of Business •Focused on a single Staffing Service 0 © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Client Segments Enterprise Regional Local 31 Agencies 361 Agencies 1266 Agencies 2 % of Market 22 % of Market 76% of Market 40% of Revenue 30% of Revenue 30% of Revenue Market trends favor Enterprise Players © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Our Position in Lines of Business Segement We are the Market Leader Per Diem Nurse Travel Allied Locums Nurse Focus on Nurse Travel will give us the biggest bang for our Buck! © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Our Position in the Service Segments Enterprise Clients need Solutions that manage all Service Segments Per Diem Long-term Permanent MSP Staffing Staffing Placement Daily Shifts Travel and Fee for Service Agency Based Local Contract VMS Largest Service Segment of Long-term strategy on many Enterprise Clients we Need Enterprise Clients © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Recovering Market Industry Revenue (Billions) 12.00 2010 - 13 At Risk CAGR • Market tanked in ’09 Therapy Cap Legislation. due to economy and 10.00 3.47 uncertainty of Healthcare Reform. 8.00 3.28 11% Workers sought 2.98 1.82 2.66 security in fulltime 2.60 2.40 employment 6.00 2.27 2.10 8% • Nurse Travel & Allied 1.80 1.96 3.71 1.80 recovering fastest due 4.00 to increased FTE 2.60 2.65 2.78 2.87 employment 2.50 5% 2.00 confidence and Health 2.40 Systems willingness to 1.20 0.90 1.13 1.26 1.35 make long-term 14% 0.00 contingent staffing 2008 2009 2010 2011 2012 2013 commitments Nurse Travel Nurse Per Diem Locum Allied © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Our Industry Share in 2011 o 28M shift hours processed by API Healthcare Agency solution in 20112, est. total agencies revenue of $1.2B 1.2B 14% o Of estimated $8.4B1 market in 2011, API Healthcare processed 14% of that spend2 2011 $8.4 Billion Market Paid to Agencies by Health Systems © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Our 2011 Est. Share by Line of Business Segment 2011 Allied API 2011 Nurse Per Diem 4% API 40% Competition Competition 60% 96% 2011 Nurse Travel 2011 Locum API API 12% 1% Competition 88% Competition 99% © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved. 9
  • Current Client Matrix Enterrprise % of Clients Client Headcount by Segment 1% Enterrprise 2 Regional 26% Local Regional 73% 79 % of Total Recuring Rev Enterrprise 13% Local 218 Local 43% Regional 44% © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • 2013 Estimated RecurringRevenue Potential 12% Nurse FTE Quits will help to maintain Per Diem Market segment and fuel Nurse Travel Growth Nurse Per Nurse Allied Locum Diem Travel $14.5M $5.2M $14M 10.5M Based on historical trend of ½% of Industry Revenue equaling staffing software expenditures © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Historic Total Contract Value $1.4 M SOW and Completed Implementation $4,000,000 of Enterprise Client $3,500,000 $3,000,000 $2,500,000 Q4 $2,000,000 Q3 Q2 $1,500,000 Q1 $1,000,000 $500,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Historic Actual Contract Value Impacted by Completed $1,200,000 Implementation of Enterprise Client $1,000,000 $800,000 Q4 Q3 $600,000 Q2 Q1 $400,000 $200,000 $- 2009 2010 2011 2012 © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • What we’ve been up to last 2 years Vitality and move to Logicalis • Scalability & Reliability & Single Code Line • Base for expansion of Enterprise Market Enterprise Client SOWs • Titanium & Platinum Release • 256 User to ~700 • Silver Release ($1.4 M EA Module) • 300 Users to ~ 600 • Configurations NOT Customizations © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Agency Market Trends  Enterprise Agency Growth • Effective human capital • M&A Activity projected to continue management tools & services • 16 Agencies have 50% Market Revenue that help providers attract • API has only 2 of the Top 16 Agencies talent, better develop and utilize current staff could be a  Travel Nurse Market Projected to Continue its Rebound powerful weapon in the • Increase in Open Orders coming battle for talent. • Increase in Bill Rate & Margins • Travel was the entry product for our two Enterprise Clients (MSN and • Addressing Travel Nurse Maxim), who are actually #1 & #2 in Per Diem Nurse staffing. market needs is strategy that will improve our Enterprise  Healthcare Employment and Allied position as well • Shortage Nurses > 700K & Family Physicians > 40K • Nursing FTE Quits up by 12% y/y (BLS) • API Healthcare Connect is timing well with market MSP • 16 Million Jobs with average turn over rate of 13.5% New $$ trends  MSP & VMS Growth Entry • Service delivery models Barrier • Solutions that promote and measure quality outcomes  Focus on Quality will have a competitive edge • ACOs/Reimbursement based on quality over those that don’t. • Joint Commission Accreditation Required to Play • Joint Commission Credential, HR and Reporting measures © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Situation Summary Issue Description Opportunity M&A Activity Enterprise clients represent 40% of all Leverage our strength in Per Diem nurse staffing to revenue potential, are expanding into LOB increase our share in Per Diem Nurse staffing with and Staffing services their in-house Enterprise clients, with long-term goal to replace in- application cannot manage without costly house solutions with single API solution. Potential enhancements. Revenue of signing a AMN healthcare using this strategy is projected to have 1.75 M in TCV. Travel and Allied Travel and Allied services are largest service Improvements in travel and long-term contract th Services offering of those Enterprise and Regional functionality by 4 QTR 2012, will give API Healthcare clients API must pursue to increase our the potential to close deals in 2014 that could increase share of these client segments. in ACV by 50% MSP Service Enterprise Clients are attacking the 3rd Party Need pricing strategy with Sales. Recommend based Growth VMS providers by developing their own MSP upon either transactional percentage, order volume or product and are gaining in popularity and subcontractor vendor license fees? scope. MSP should find traction with ACO’s because the ACO can hold MSP accountable for quality and performance © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Situation Summary Issue Description Opportunity Healthcare Employers With 16 Billion healthcare jobs and a Enhance our ARS solution so that it can be used are hiring 13.5% turnover average, the need to across the entire healthcare industry as the standard onboard, test and manage credentials is for onboarding, compliance monitoring and credential strong across the industry including the management. new ACOs, but we only address a small part of the market. High cost of In terms of prospects, the Local client Improvement in implementation, training and pricing implementation and segment represents 76% of the strategies would significantly Increase our wins in training of our base Healthcare Staffing Market and our $8M in ACV Local Client Segment. This will directly solution implementation and training costs attack BlueSky, our largest competitor in the obstacles our competitors don’t have. segment. Attacking BlueSky can have trickle affect Successful Local Client grow and on our largest testing competitor Prophecy increase ACV through additional User Licenses, hosting and maintenance fees Focus on Quality Joint Commission accreditation is Improve our solution to properly track and report necessary to participate in larger against Joint Commission performance measures • Joint Commission contracts and ACO quality indicators. Close Gaps in • Compliance compliance functionality which will help us compete • ACOs As ACO’s impact our clients, the need to for larger share of the 31M ACV Enterprise and track and measure quality indicators will Regional client base. only increase. © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Strategic Plan Situation Summary •Market Update •Strategic Issues & Opportunities Strategic Choices •Vision •Where Will We Compete? (Target Markets) •Who Must We Beat? (Competitors) •How Will We Win? (Value Strategy) •How Will We Grow? (Growth Strategy) Strategic Roadmap •What Will We Achieve? (Strategic Objectives) •What Must We Do? (Strategic Roadmap) •Summary of Growth Initiatives Financials •Pro Forma •Risks •Investment Requirements © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Short-term Goals  Retain Current and Grow Per Diem Market Share  Increase Travel and Allied Share  Funded Enterprise Development with Solution ROI  Clinical Content Product for API Healthcare  Independent Recruiting Solution for Healthcare Industry  API Healthcare Connect MSP Solution © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Long-term Vision  Leading Domestic SaaS Solution for all LOBs and Staffing Services that works for all Client Market Segments  API Connect Vendor Neutral Contingent Workforce Solution  Utilize Health System Solution technologies for common workforce business processes in Connect and .net rewrite of CSS • ShiftSelect for Connect and Contingent Staffing Solution • API Healthcare Connect Credentialing and Compliance Engine for all solutions • HPS Payroll for Connect Contingent Staffing Solution  Expand our English International Market Share  Healthcare Staffing Industry Analytics Product  Set Industry Standards in Workforce Profiles and Order Data Definition  User Certification Programs for Enterprise Solution © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Who we compete with Enterprise Regional Local US THEM US THEM US THEM In-house Workflow is customized, but expensive to maintain and update BlueSky Heathcare Specifc, low cost and integrated with Prophecy StaffMed Heathcare Specifc and low cost. Lost focus while persuing VMS MicroStaffer Heathcare Specifc and low cost. Out of date Technology Bullhorn Low cost with good CRM functionality. Not Heatlhcare Specific Akken Low cost, but not Heatlhcare Specific BondAdapt Good Brand and customizable. Not healthcare specific Prophecy Good Brand, clinical content and does not require BlueSky Disadvantage Neutral Advantage © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Strategic Plan Situation Summary •Market Update •Strategic Issues & Opportunities Strategic Choices •Vision •Where Will We Compete? (Target Markets) •Who Must We Beat? (Competitors) •How Will We Win? (Value Strategy) •How Will We Grow? (Growth Strategy) Strategic Roadmap •What Will We Achieve? (Strategic Objectives) •What Must We Do? (Strategic Roadmap) •Summary of Growth Initiatives Financials •Pro Forma •Risks •Investment Requirements © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Strategic Choices Estimated Segment Buyers Goal Opportunity Increase Close Rate by restructure pricing, small improvements in configuration options and work with Local Client 1000 $3- $6M ACV services to restructure training and implementation to reduce cost for this market Near Travel Service 200+ $4 - $6M ACV Improve Travel and CRM functionality to close travel Term clients sales has lost based upon missing functionality 2-3 4th QTR 2012 go to market Connect Agency MSP MSP Service (work with sales) Existing solution for existing ACS Clients Order SMS, Joint Commission DNR, Orientation and Per Diem Clients 1500 Compliance Enhancements Enterprise and ACS Rewrite in Connect Platform with goal of closing 300 $20 - $25M ACV Regional Clients gaps needed by Enterprise and Regional Clients ARS Connect Platform solution for ALL healthcare Healthcare Onboarding 3000+ UNK ** workforce onboarding, credential and compliance Long & Credentialing management. Term Connect Vendor Solution that allows purchaser to install Vendor Neutral 1500 UNK ** Neutral Solution VMS in a healthcare system © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Strategic Roadmap Q3 2013 Q4 2012 Q1 2013 Maxim Live on 7.08 MSN Live on Silver MSN Silver Phase II, III Development Maxim Custom Development/Government Services AMN Per Diem Shift SMS Clinical Content Product Local Client Pricing and Packaging API Connect MSP R 2 & API Healthcare Connect & CSS MSP Solution Vendor Neutral Solution Travel/Allied Enhancements Achieves Enterprise Goals © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Strategic Roadmap Q2 2013 Q3 2013 Q4 2013 Travel CRM & Contracts Recruiting Solution Healthcare Industry Solution API Connect MSP R 2 & Vendor Neutral Solution CSS Connect Enterprise AMN Maxim Custom Development/Government Services MSN Silver Phase II, III Development Helps Achieve Enterprise Goals © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Roadmap Obstacles Support Monopolize PRO: Adds Funded development new resources functionality Development .net Timing of Conversion Major Changes Lack of Implementation Services Domain & Training Knowledge Costs © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • API Healthcare Connect Vision © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Minimal Viable Products Agency MSP with ACS Agency MSP without ACS Vendor Neutral VMS • Multiple Per Diem Order • Multiple Per Diem Order • Multiple Per Diem Order Management Management Management • Multiple Long-term Order • Multiple Long-term Order • Multiple Long-term Order Management Management Management • Worker Profile, Credential • Worker Profile, Credential • Worker Profile, Credential and Document Sharing and Document Sharing and Document Sharing • Integration with ACS • Integration with ACS • Integration with ACS • User Management • User Management • User Management • Compliance • Compliance • Vendor Management • Vendor Management and Order Control and Order Control • Integration with TASS/ShiftSelect • More… © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Connect MSP: Minimal Value Adds  Both: • Work in a ONE Solution - Health System: Connect - Agency: CSS • Productive View vs. Mobile View  Agency • Health System Self Order Entry and Temp Credential Retrieval Adoption in Connect • Control over Order Publication to Subcontractors in CSS • Worker Evaluation Request in CSS and Completion in Connect  Health System • Multiple order suggestion review and confirmation Process in Connect • Access Temp Profile and Credential Documents in Connect • User friendly multiple order entry and schedule view in Connect • Fill Statistics in Connect © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Concerns  Single Order Focus • Need to be able to quickly add, modify, cancel, void and confirm a list of orders  No Long-term Orders • Need to manage long-term orders  Lack of Filters and IDs for reference  Profile Submission and Review • Too cumbersome © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Order Entered by Health System Worker Worker Performs Submitted by Services Agency Health System Profile Reviewed Confirms Worker by Health System (auto or manual) List of Acceptable Agency Confirms Workers sent by Worker from List Health System© 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Agency Solutions © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Agency Operations Solution• Order Management• Recruiting & Client Sales CRM• Worker Profile and Evaluation• Staffing & Scheduling• Temp and Client Portals• Operational and Financial Reporting• 3rd Party System IntegrationsKey Differentiators• Compliance• Payroll (all 50 states)• Invoicing © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Add-ons and Options• Travel Module• Pay Check Printing Module• Vendor Management Solution• Job Board• Enterprise Accounting Module• ARS Integration• ClearConnect Web Services © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • Onboarding & Credential Mgt.• Online Application and Routing• Competency Testing• Self Skills Assessments• e-Documents and Signatures• Direct Integration with ACS• ClearConnect Web Services © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.
  • SaaS Revenue Annual Contract Value Total Contract (ACV) (TCV) •ACV •Implementation •Training Software, Hosting and Maintenance •Integrations •Customizations © 2012 API Healthcare Corporation. Confidential Information. All Rights Reserved.