Agency market

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


How we Segment the Market

Who buys, what's 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


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


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!


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


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


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


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%


2013 Estimated Recurring
Revenue 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


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


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


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


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


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


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.


Strategic Plan
Situation Summary

•Market Update

Strategic Choices
•Vision

Strategic Roadmap


Financials

•Pro Forma
•Risks


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


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


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


Strategic Plan
Situation Summary

•Market Update

Strategic Choices
•Vision

Strategic Roadmap

Financials

•Pro Forma
•Risks


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


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


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


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


API Healthcare Connect Vision


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…


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


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


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


Agency Solutions


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 Integrations

Key Differentiators
• Compliance
• Payroll (all 50 states)
• Invoicing


Add-ons and Options
• Travel Module
• Pay Check Printing Module
• Vendor Management Solution
• Job Board
• Enterprise Accounting Module
• ARS Integration
• ClearConnect Web Services


Onboarding & Credential Mgt.

• Online Application and Routing
• Competency Testing
• Self Skills Assessments
• e-Documents and Signatures
• Direct Integration with ACS
• ClearConnect Web Services


SaaS Revenue

Annual Contract Value Total Contract
(ACV) (TCV)

•ACV
•Implementation
•Training
Software, Hosting and Maintenance •Integrations
•Customizations


Agency market

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Editor's Notes