AdvantEdge Healthcare Solutions

AdvantEdge Healthcare Solutions
October 2012
Enabling Healthcare Providers to Thrive
AHS is a technology enabled provider of
Revenue Cycle Management Services,
Informatics, and Expertise that enables
healthcare providers to maximize
financial performance and eliminate
compliance risks.
AHS CONFIDENTIAL INFORMATION – Do Not Distribute
About AdvantEdge

AdvantEdge Healthcare Solutions

Top 10 medical billing, coding and practice management company

Over 675 employees in 8 regional offices in the US and 1 office in Bangalore, India

Collecting over $1.25B for its physician clients

Recognized industry leader - uniquely positioned

Clients are typically large medical group practices with a high propensity to outsource due to
practice characteristics

Since 1966, AdvantEdge (and/or its acquired entities) has served some of the nation’s most
respected healthcare institutions


Hospital for Special Surgery
North Shore-LIJ Health System
Advocate Healthcare System
Wellspan
St. Barnabas Health System
SUNY Downstate Med Center
Erlanger Health Centers
Partners Healthcare
The Company continues to enjoy outstanding growth opportunities

“Thoughtful” acquirer yielding 5 year CAGR of 41% in a consolidating market

Organic growth rate (annualized revenue of new sales closed) average of 19.8% annually over past 5 years
AdvantEdge has been recognized as one of the fastest growing companies by regional and
national publications, such as INC magazine (4 years running) and NJBusiness (top 10 growth
company in 2010)
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Business Characteristics

Highly predictable recurring revenues and strong cash
flow

Superior client retention

Significant Operating Leverage: Scalable platform
based on proprietary technology and workflow

Effective buy-and-build strategy: Integrate, Migrate,
Operate

Sales & marketing focus with aggressive organic
growth strategy

Management Team has extensive industry, acquisition
and integration experience
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Market Leading Strategy
Creating Value for Clients, Employees, and Stakeholders through:
GROWTH
EFFICIENCY
ZERO CLIENT
ATTRITION
TECHNOLOGY
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INTEGRATION
Geographic Presence
AHS has a broad footprint across the US and Bangalore, India
AHS Office
AHS Client
AHS Clients (Multiple/many clients)
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AdvantEdge Value Proposition
The Problem
Attract & retain
high-quality
staff
Constant threat
of reduced
reimbursement
rates
Increasing
complexity &
regulatory
requirements
Technology and
staff investments
are expensive
The AHS Solution
 More Money, Faster
 Compliance, Built-in
 Business Intelligence and Reporting – Anytime/Anywhere
 Client First™ Service
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Market Opportunity
The market for the Company’s services is
estimated at $4B - $8B
Office-based
RCM
$0.70
$3.30
In-House:
Practice Management
Large and growing market:

Physician expenditures
increasing by 8% + / yr.

Increasing shift to
outsourcing (RCM); currently
less than 20% of total

Largest competitor has
under 5% of total market
$4.00
$4.00
Hospital Based MD
RCM
AHS Target
Market
Billing and Practice Management Service Market (Falcon Capital): $8.0B
Total RCM Market (Wallingford Capital/HBMA, 2007): $4.7 B; top 10 billing cos.: $1.0B
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Target markets
Financial Performance
**EBITDA reflected throughout this report is adjusted to add back capital and
acquisition related costs and Investor Group management fees

2009 Revenue and EBITDA growth of 116% and 125% respectively

2010 Revenue and EBITDA growth of 85% and 280% respectively

2011 Revenue and EBITDA growth of 41% and 67% respectively
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