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It’s not for everyone.
It’s healthcare for you.
An estimated $5 billion dollar industry and growing at a 34% CAGR, concierge medicine in the U.S. is highly fragmented and growing quickly.
*The Concierge Medicine Research Collective
Legal Disclaimer
This presentation uses forward-looking statements and assumptions that involve risks and uncertainties, including, but not exclusively,
the risks associated with the effect of changing economic conditions, changes in the markets, variations in the company’s business plan,
market acceptance risk, technical development risks, and other business risk factors. In light of these and other risks, and uncertainties,
there can be no assurance that the events predicted will in fact transpire. All care and diligence has been used to ensure fair
and accurate projections, based upon current methodology, current market conditions, research and analytic data.
AN ALTERNATIVE INVESTMENT INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE UNDERTAKEN ONLY BY PERSONS
WHOSE FINANCIAL RESOURCES ARE SUFFICIENT TO ENABLE THEM TO ASSUME SUCH RISK AND TO BEAR THE TOTAL
LOSS OF THEIR INVESTMENT.
THIS PRESENTATION IS ONLY FOR ACCREDITED INVESTORS, INSTITUTIONAL LENDERS AND QUALIFIED PURCHASERS.
PersonalCare helps doctors,
health systems, and companies
provide optimal health solutions to
the 1%.
Momentum
 Largest provider of concierge healthcare services in Orange County, CA
 3 locations, 1,800 paying members
 300 personal training members
 20 enterprise accounts
 $3M+ recurring management fee revenue
 $5M+ in recurring practice access fee revenue
 Health system brand license
 Secured $4.5M in equity
 Sourced immediate expansion opportunities in adjacent geographies
 Trending EBITDA positive Q4 2015
Industry Growth
 Healthcare inflation & decreasing service quality has led to dissatisfaction with traditional primary care and has led to rapid
growth in concierge medicine.
 Concierge physicians grown at 34% CAGR over the past 3 years
 Market is estimated to be $5BB*
 Highly fragmented market; 60% of concierge physicians practice alone*
 A national category killer does not exist
 Sophisticated competition does not exist in Southern California market
o Significant investment capital is being deployed in the space in an effort to meet growing
demand.
o One Medical, a low-price competitor has raised $140 million
o MDVIP sold for ~$300 million in April 2014; estimated to be 19 x trailing EBITDA
o Qliance has raised $27 million in investment capital
o iorahealth has raised $70 million in Series A, B, and C investment capital
*The Concierge Medical Research Collective
Customers
6
•Hoag
•St. Joseph’s
•Etc.
Hospitals
•PIMCO
•In-N-Out
•Irvine Company
Business to Business
•Affluent consumers with income of $250k+Business to Consumer
•Medical GroupsMedical Groups & Physicians
Geographic Scope
 The prototypical PersonalCare member is an
executive with annual household income of
$250,000 or greater.
 Southern California has 280,000 households with
income of $250,000+ representing 900,000
prospects.
 PersonalCare’s goal is to acquire 3% of Southern
California residents earning $250k, which will
generate 21,000 members for PCP’s managed
practices.
• 24/7 access by phone,
text, & email.
• Patient Time Priority
• Same day
appointments
• Critical health issue
response
• Access to best
specialists and medical
centers
• Personalized,
comprehensive health
& wellness plan
• One-on-one
consultations
• Proactive,
personalized health
updates
• Continuous
monitoring and
assessing
• Board certified
• Highly respected
in medical
communities
• Medical partners
steeped in
patients’ health
histories
• A team of highly
trained clinicians
• State-of-the-art
diagnostics
• Establish key
preventive markers
• Assessment
integrates nutrition,
mobility, flexibility,
and fitness
• Fitness & nutrition
support with
medical supervision
Business Model
 PCP generates revenue by managing concierge medical practices for a fee
 Fees are either formulated as a percent of revenue or a mark-up on cost
Fees in existing practices average 55% of practice revenue
 Physicians generate approximately $625k in management fee revenue once membership panel hits 380
Practice margins at capacity are approximately 40%
o Fees of practices in development in Los Angeles and San Diego will be cost + mark up (approximately 20%)
oCost + management agreements have lower margins than percent of revenue management agreements but these
locations are immediately profitable and therefore enhance PCP’s ability to scale into new markets at minimal risks
Strategic Growth Plan
Secure large membership base by dominating the B2B market for executive health and concierge services; augment enterprise
growth by “rolling up” existing concierge medical groups.
 Grow B2B
Partner with health networks to allow PCP services to be provided in the system’s closed-end insurance network
Partner with enterprise accounts that want to provide best-in-class healthcare to executives
 Grow B2C
Increase prospect generation by investing in targeted marketing campaigns – historically all leads come from WOM and
referrals
 Add “Cost +” and Specialists to scale
Partner with existing concierge providers in Orange County, Los Angeles and San Diego to maximize speed-to-market
Distribution
Direct Sales
Hospital
Partnerships
Benefits
Brokers
Strategic
Partnerships
Board of Directors
Troy Medley
•Chairman & CEO
•Pepperdine MBA
Will Kessinger
•Founder (VFormation)
•Managing Partner Parthenon Capital Partners
•Harvard MBA
Jordy Spiegel
•Spiegel & Partners
•Harvard MBA
Cynthia Perezzo
•Hoag Board Designee
•Senior Vice-President, Strategy and Business
Development
•Harvard MBA
Dr. Jeffrey Barke, M.D.
•Founder
Dr. Kenneth Cheng, D.O.
•Founder
Senior Management Team
Troy Medley
•CEO
•MBA
Kevin
Davidson
•CSO
•MHA
Dr. Jim
Lindberg
•CMO
•M.D
•MBA
2015 2016 2017 2018
Practices 5 8 9 10
Physicians 14 20 25 30
Members 2,800 5,500 8,000 9,000
Revenue $4.1M $9.2M $12.8M $14.7M
Expenses $4.7M $7.3M $8.3M $8.4M
EBITDA $(684)K $1.9M $4.4M $6.3M
*PCP intends to build additional practices in Orange County and expand throughout Southern California.
Practices are currently being developed for Newport Beach, La Jolla, Beverly Hills and Century City.
*Forecasted performance of current practice footprint AND practices in development
Forecast - Growth
2015 2016 2017 2018
Practices 3 3 3 3
Physicians 10 12 14 14
Members
2,360 3,700 4,400 4,550
Revenue $3.6M $5.4M $7.3M $8.0M
Expenses $4.2M $4.3M $4.4M $4.5M
EBITDA $(660)K $1.1M $2.9M $3.5M
*Forecasted performance of current practice footprint at current growth trend
Forecast – Steady State
Forecast – Steady State vs. Growth
($2)
$0
$2
$4
$6
$8
$10
$12
$14
$16
2015 2016 2017 2018
Growth Forecast
Revenue Expense EBITDA
Million
($2)
$0
$2
$4
$6
$8
$10
$12
$14
$16
2015 2016 2017 2018
Steady State Forecast
Revenue Expense EBITDA
Million
Competition
target
target
Exit Strategy
Expected Price Premium at Exit
HealthSystems
• Allows health
system access to
the premium
consumer of
healthcare
services which
enhances the
value of its closed
insurance network
• Health systems
need premium
payers to subsidize
mass market
StrategicBuyer
• Allows provider of
revenue
enhancement
solutions to health
systems to partner
with health systems
to rapidly create a
concierge network
• Revenue
enhancement
consultants need a
“new” service that can
provide immediate
value, as cost
containment
strategies have
reached diminishing
returns
Competitor
• Allows competitor
that invested in
scale without a
differentiated
solution to plug a
better service into
its network
• Undifferentiated
competitors need
to purchase
capabilities to
compete as
industry matures
GrowthEquity
• Allows a financial
buyer looking to
create critical mass
entry into the
lucrative Southern
California market
• Financial buyers
need scale to
reach IPO
Investment
 $1M of an authorized $2M in Series B Preferred growth equity = 4% of the company.
 Current investors: Management, Silicon Valley venture capital firm, and Hoag Hospital
 LLC liquidation preference enhances tax shield and IRR
 8% accruing preferred distribution
 Closing before April 15th, 2014
 Use of Capital
 Add Business Development personnel
 Underwrite legal costs associated with developing cost+ management agreements
 Fund working capital
 General corporate needs

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Personal care physicians series b preferred investment presentation

  • 1. It’s not for everyone. It’s healthcare for you. An estimated $5 billion dollar industry and growing at a 34% CAGR, concierge medicine in the U.S. is highly fragmented and growing quickly. *The Concierge Medicine Research Collective
  • 2. Legal Disclaimer This presentation uses forward-looking statements and assumptions that involve risks and uncertainties, including, but not exclusively, the risks associated with the effect of changing economic conditions, changes in the markets, variations in the company’s business plan, market acceptance risk, technical development risks, and other business risk factors. In light of these and other risks, and uncertainties, there can be no assurance that the events predicted will in fact transpire. All care and diligence has been used to ensure fair and accurate projections, based upon current methodology, current market conditions, research and analytic data. AN ALTERNATIVE INVESTMENT INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE UNDERTAKEN ONLY BY PERSONS WHOSE FINANCIAL RESOURCES ARE SUFFICIENT TO ENABLE THEM TO ASSUME SUCH RISK AND TO BEAR THE TOTAL LOSS OF THEIR INVESTMENT. THIS PRESENTATION IS ONLY FOR ACCREDITED INVESTORS, INSTITUTIONAL LENDERS AND QUALIFIED PURCHASERS.
  • 3. PersonalCare helps doctors, health systems, and companies provide optimal health solutions to the 1%.
  • 4. Momentum  Largest provider of concierge healthcare services in Orange County, CA  3 locations, 1,800 paying members  300 personal training members  20 enterprise accounts  $3M+ recurring management fee revenue  $5M+ in recurring practice access fee revenue  Health system brand license  Secured $4.5M in equity  Sourced immediate expansion opportunities in adjacent geographies  Trending EBITDA positive Q4 2015
  • 5. Industry Growth  Healthcare inflation & decreasing service quality has led to dissatisfaction with traditional primary care and has led to rapid growth in concierge medicine.  Concierge physicians grown at 34% CAGR over the past 3 years  Market is estimated to be $5BB*  Highly fragmented market; 60% of concierge physicians practice alone*  A national category killer does not exist  Sophisticated competition does not exist in Southern California market o Significant investment capital is being deployed in the space in an effort to meet growing demand. o One Medical, a low-price competitor has raised $140 million o MDVIP sold for ~$300 million in April 2014; estimated to be 19 x trailing EBITDA o Qliance has raised $27 million in investment capital o iorahealth has raised $70 million in Series A, B, and C investment capital *The Concierge Medical Research Collective
  • 6. Customers 6 •Hoag •St. Joseph’s •Etc. Hospitals •PIMCO •In-N-Out •Irvine Company Business to Business •Affluent consumers with income of $250k+Business to Consumer •Medical GroupsMedical Groups & Physicians
  • 7. Geographic Scope  The prototypical PersonalCare member is an executive with annual household income of $250,000 or greater.  Southern California has 280,000 households with income of $250,000+ representing 900,000 prospects.  PersonalCare’s goal is to acquire 3% of Southern California residents earning $250k, which will generate 21,000 members for PCP’s managed practices.
  • 8. • 24/7 access by phone, text, & email. • Patient Time Priority • Same day appointments • Critical health issue response • Access to best specialists and medical centers • Personalized, comprehensive health & wellness plan • One-on-one consultations • Proactive, personalized health updates • Continuous monitoring and assessing • Board certified • Highly respected in medical communities • Medical partners steeped in patients’ health histories • A team of highly trained clinicians • State-of-the-art diagnostics • Establish key preventive markers • Assessment integrates nutrition, mobility, flexibility, and fitness • Fitness & nutrition support with medical supervision
  • 9. Business Model  PCP generates revenue by managing concierge medical practices for a fee  Fees are either formulated as a percent of revenue or a mark-up on cost Fees in existing practices average 55% of practice revenue  Physicians generate approximately $625k in management fee revenue once membership panel hits 380 Practice margins at capacity are approximately 40% o Fees of practices in development in Los Angeles and San Diego will be cost + mark up (approximately 20%) oCost + management agreements have lower margins than percent of revenue management agreements but these locations are immediately profitable and therefore enhance PCP’s ability to scale into new markets at minimal risks
  • 10. Strategic Growth Plan Secure large membership base by dominating the B2B market for executive health and concierge services; augment enterprise growth by “rolling up” existing concierge medical groups.  Grow B2B Partner with health networks to allow PCP services to be provided in the system’s closed-end insurance network Partner with enterprise accounts that want to provide best-in-class healthcare to executives  Grow B2C Increase prospect generation by investing in targeted marketing campaigns – historically all leads come from WOM and referrals  Add “Cost +” and Specialists to scale Partner with existing concierge providers in Orange County, Los Angeles and San Diego to maximize speed-to-market
  • 12. Board of Directors Troy Medley •Chairman & CEO •Pepperdine MBA Will Kessinger •Founder (VFormation) •Managing Partner Parthenon Capital Partners •Harvard MBA Jordy Spiegel •Spiegel & Partners •Harvard MBA Cynthia Perezzo •Hoag Board Designee •Senior Vice-President, Strategy and Business Development •Harvard MBA Dr. Jeffrey Barke, M.D. •Founder Dr. Kenneth Cheng, D.O. •Founder
  • 13. Senior Management Team Troy Medley •CEO •MBA Kevin Davidson •CSO •MHA Dr. Jim Lindberg •CMO •M.D •MBA
  • 14. 2015 2016 2017 2018 Practices 5 8 9 10 Physicians 14 20 25 30 Members 2,800 5,500 8,000 9,000 Revenue $4.1M $9.2M $12.8M $14.7M Expenses $4.7M $7.3M $8.3M $8.4M EBITDA $(684)K $1.9M $4.4M $6.3M *PCP intends to build additional practices in Orange County and expand throughout Southern California. Practices are currently being developed for Newport Beach, La Jolla, Beverly Hills and Century City. *Forecasted performance of current practice footprint AND practices in development Forecast - Growth
  • 15. 2015 2016 2017 2018 Practices 3 3 3 3 Physicians 10 12 14 14 Members 2,360 3,700 4,400 4,550 Revenue $3.6M $5.4M $7.3M $8.0M Expenses $4.2M $4.3M $4.4M $4.5M EBITDA $(660)K $1.1M $2.9M $3.5M *Forecasted performance of current practice footprint at current growth trend Forecast – Steady State
  • 16. Forecast – Steady State vs. Growth ($2) $0 $2 $4 $6 $8 $10 $12 $14 $16 2015 2016 2017 2018 Growth Forecast Revenue Expense EBITDA Million ($2) $0 $2 $4 $6 $8 $10 $12 $14 $16 2015 2016 2017 2018 Steady State Forecast Revenue Expense EBITDA Million
  • 18. Exit Strategy Expected Price Premium at Exit HealthSystems • Allows health system access to the premium consumer of healthcare services which enhances the value of its closed insurance network • Health systems need premium payers to subsidize mass market StrategicBuyer • Allows provider of revenue enhancement solutions to health systems to partner with health systems to rapidly create a concierge network • Revenue enhancement consultants need a “new” service that can provide immediate value, as cost containment strategies have reached diminishing returns Competitor • Allows competitor that invested in scale without a differentiated solution to plug a better service into its network • Undifferentiated competitors need to purchase capabilities to compete as industry matures GrowthEquity • Allows a financial buyer looking to create critical mass entry into the lucrative Southern California market • Financial buyers need scale to reach IPO
  • 19. Investment  $1M of an authorized $2M in Series B Preferred growth equity = 4% of the company.  Current investors: Management, Silicon Valley venture capital firm, and Hoag Hospital  LLC liquidation preference enhances tax shield and IRR  8% accruing preferred distribution  Closing before April 15th, 2014  Use of Capital  Add Business Development personnel  Underwrite legal costs associated with developing cost+ management agreements  Fund working capital  General corporate needs