MARKET RESEARCH MAKES A COMPELLING CASE FOR UTILIZING HOME HEALTHCARE TO OVERCOME ADDICTION AND MENTAL DISEASESâ€¨
Problem ! Of the more than 30,000 Southern Californians who attend substance abuse treatment centers each year, 21,000 relapsed within one year. Treatment experts in Alignment’s initial service area report the local relapse rate to be 70%.* ! Alignment refers to this as the “gap” in traditional treatment which leaves clients struggling to succeed upon discharge. ! 90% of those who need substance abuse treatment never receive it according to the Surgeon General’s Report on Substance Abuse in 2016. ! There is no current model like Alignment locally for treatment in a home setting. *Initial service area is concentrated in 4 major Southern California counties: Los Angeles, Orange, Ventura and Santa Barbara
Solution ! Alignment supports a client as the the alternative to substance abuse treatment OR as a home aftercare solution ! Reaches addicts who cannot otherwise commit to traditional treatment methods ! Fills the “gap” where most addicts relapse ! Offers effective, results driven treatment at a fraction of traditional treatment cost. ! Adapts to client needs as stand-alone treatment or as a home aftercare solution ! This model is vastly superior to current treatment offerings ! A similar company on the East Coast has seen the relapse rate reduced to 20%* with the implementation of this type of care. *Connecticut Journal of Medicine, August 2014
Medical Care Team • Psychiatrist • Director of Patient Care Services (RN) • LVN
Collaborative Care Process • Team Meetings • Electronic Medical Record (EMR) • Telemedicine
Clinical Care Team • Therapist • Case Manager • Therapeutic Specialist
The focus is on ALL aspects of an addict’s recovery needs#
Care Model# Alignment Home Health care includes:# " Achieving success through continued Structure,Compliance and Accountability# " Licensing - Dept of Public Health (skilled care) and Dept of Social Services (non-skilled care)# " Daily Check-ins with Service Professionals# " 24/7 GPS Monitoring# " Drug Testing and Breath Test Accountability# " Telemedicine, proven as effective as in person appointments# " Medication Management# " Case Management# " Community Involvement# " Rebuilding Family Dynamics#
Business Model# Alignment Model Vs. Existing Treatment 60 Day Program Cost Comparison $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0
Sober Living - No Treatment
Alignment Treatment Model
Outpatient and Sober Living
Business Model# The versatility of our model allows Alignment to serve clients under many circumstances# ! As an aftercare service for discharging addicts whenever they are transitioning home# ! The second largest geographic location in the nation to treat clients ! This homecare model is superior to anything currently available on the West Coast# ! As a cost effective substitute of traditional treatment# ! Accepting reimbursement through private insurance companies is a primary focus ! State licensure as a Home Health Agency and hiring service employees with substance abuse credentialing will provide the availability of insurance reimbursement. 60 days of Alignment Home Health ! Program costs are $15,000 per 60 days of treatment ! Service costs $4,570 per 60 days
! Profit per client $10,430 ! Average Gross Margin 73%
Investment Allocation In our seed round, we are seeking $750,000 in investment capital ! The round will yield 37.5% equity for investors ! Pre Money Valuation at $1.25 million ! ROI is planned through distributions in the coming 3-5 years as Alignment proves the model and maximizes cash flow. At this point the Board will decide if it is in the best interest of the equity partners to continue to grow revenue into new markets or position for an M&A deal. ! Potential exit strategies 5+ years: Expand and maximize revenue with regular distributions or position for M&A. Company Projections! ! Average Burn Rate Year 1 = $76,491# ! Largest Cash Deficit = $227,495# ! 6 New Clients per month = Cash Flow Positive# ! Net Income Year 1 = $254,213# ! Net Income Year 2 = $359,673#
Use of Proceeds# Funding will apply toward opening for service. Our largest expense will be in payroll. We are a service business with 53% of our annual expense variable based on client census. If we do not treat our projected client census in any given month Direct Service Costs will decrease. Allocation of Expenses
Other Marketing Administrative
Alignment Home Health provides an Executive Team with: !
Combined over 50 years of experience
Successfully started multiple substance abuse and home health businesses
Managed staff in excess of 100 people
Extensive network of relationships to channel clients !
Two renowned treatment facilities intend to refer clients to Alignment upon launch
Executive Team ! Eamon O’Hara is cofounder and CEO ! Co-owned and operated 2 substance abuse rehabs simultaneously in two states. Both companies grossed over 5 million dollars in revenue each within 2 years of operation while treating hundreds of addicts. ! Robin Salter is Chief Operating Officer. ! Managed and consulted with businesses, non-profits, and educational institutions throughout Southern California for over 20 years. ! Christina O’Hara is cofounder and managing member. ! Managed the day-to-day operations at a top tier treatment facility placing emphasis on the importance of client care. Realizing she could be more effective she transitioned to working one-on-one with addicts to help them overcome their addictions in their homes. ! Laura Brenneman Jones will lead the nursing department as Director of Patient Care Services. She has brought 2 home health companies to grossing over 1 million dollars each within 1 year.Formulated and administered a 12 million dollar annual budget; cutting nursing expenses 2 million dollars in 1 year.
Pioneers in Home Health for addiction treatment AWARE RECOVERY CARE NEW HAVEN, CONNECTICUT AWARE Recovery Care is the only known like model in the nation. Their proof of concept provided assurance to Alignment that the model is viable and effective.
! In the past 3 years AWARE has contracted with Anthem Blue Cross in 2 states. www.awarerecoverycare.com
! AWARE’s success rate is 300% higher than the national average as is referenced in the Connecticut Journal of Medicine, September 2014. ! 9 out of 10 clients are staying sober for over a year vs. national average of 3 in 10. See hyperlink of proof of concept from published medical journal. !
Connecticut Journal of Medicine - Aware Recovery Pilot Proof fo Concept
Competition ! Alignment will lead this model to market in California. We will secure insurance contracts and keep ahead of the progress of new programs. We project to have a two year lead time on competitive programs entering the market. ! Accepting insurance is a key to Alignments scalability and this is a feasible endeavor that we have seen accomplished by a similar modeled company. ! Alignment research has also identified many areas of mental healthcare that have “gaps” in treatment due to the lack of homecare solutions. Alignment will become equipped to treat a broad spectrum of behavioral health through homecare; expanding the services provided and increasing the target market. ! Alignment will recruit, hire, and train highly qualified staff. With our experience in the substance abuse industry, we know the key factors to look for when hiring client service staff. Alignment’s management team provides a rigorous hiring and thorough training process in order to ensure the highest level of care for clients.
Strategy ! Alignment submitted the licensing application to the Department of Public Health in August 2017 and anticipates program launch is April 2018. ! State licensure is essential and provides the credibility needed to work with insurance companies. ! Simultaneously we will hire service staff, an office manager and sales persons to carry out all aspects of the business operation. ! We currently have a handful of clients awaiting our program opening to admit. ! Alignment will implement success metrics to track client progress and use that in a proposal to become contracted with insurance companies. ! Our model has all the aspects needed to have greater efficacy than current treatment offerings. ! Many of our clients will transitioning from acute or sub acute care meaning that all or a majority of their out of pocket insurance expenses will be met. This results in a very minimal direct client expense to admit to our program ! Following success of the Home Health model with substance abuse, Alignment will begin treating additional diseases that also have a “gap” in their treatment offerings. ! Eating Disorders, Bipolar and an array of other behavioral disorders are potential illnesses that will be considered as additional treatment programs in the future.
Marketing# ! Alignment has identified client referral sources in numerous areas of healthcare that provide tens of thousands of potential clients: therapy offices, treatment centers, and primary care doctors. Building networks with current providers is underway. The primary focus of our sales team is to develop these thousands of referral sources and maintain the relationships. ! Due to regulatory changes within the health insurance industry, treatment centers, which include our largest market of potential patients, are being forced to equip their alumni with aftercare tools to maintain abstinence or will face lowered reimbursement for service. The Alignment model will help them maintain financial goals while helping their clients succeed. Thus, there is a direct benefit to Alignment’s census and revenue. ! In order to meet revenue projections, Alignment only has to convert less than 1% of the available discharge market from treatment centers in Southern California. We have also generated interest from out of state facilities that have many clients who relocate or return to the Greater LA area upon discharge.
Eamon Oâ€™Hara, CEO Eamon@AlignmentHomeHealth.com AlignmentHomeHealth.com 310-739-8345
Alignment Home Health investor deck