Technology Sized Returns in Healthcare?
Canexxia Health has identified an attractive consolidation opportunity in the home healthcare sector and is seeking to undertake a “roll-up” of home health agencies ation-wide.
Our agencies will offer a competitive range of modalities, including skilled nursing, physical therapy, speech therapy, occupational therapy, home health aids, post-acute care, high-risk patient care, cardiovascular post-operative care, sleep studies, infusion therapy, and “age in place” services, with a focus on improving patient experience.
Our model gives administrators autonomy, clinical control, upside participation and income. We reward owners an attractive buy in multiple and upside through retained equity in Canexxia.
We do not compromise patient experience and, in fact, improve service levels and upstream provider's reimbursement model by improving specific risk factors unique to CMS' value-based care mandate.
Our team is expert in maximizing profits in the usual ways – streamlining operations and consolidating functions across the larger enterprise. But we also add a unique direct-to-patient,holistic care model to dramatically increase reimbursements and expand EBITDA margins.
Canexxia views the fragmented nature of the home healthcare market as an opportunity to capture the “sea change” in healthcare as more care is completed in the home.
With so many small and medium operators, the industry is attractively fragmented. The fundamentals of the healthcare sector add further attraction:
- Large easy to find $103+ billion revenues annually. Canexxia intends to target the lower and middle section of the market ($24 billion)
- Industry revenue growth rates in excess 5% per year for the next 10 years .
- Per-case revenue expected to climb due to chronic disease needs.
Long term, technology will allow us to deliver ‘value based’ care through point-of-care data acquisition. And, as our data warehouse grows, will be a key driver for competitive differentiation in diagnostics and, importantly , deliver beneficial outcomes for patients through enhanced patient care and better outcomes
Canexxia is confident that its business model positions us well to capture a significant share of the US home healthcare market.
Home healthcare encompasses modalities to prevent, diagnose, treat and monitor injuries, illnesses and diseases. Patients are referred to home health agencies through either private providers, hospitals, skilled nursing and various out-patient facilities.
Medicare mandate: Rising demand for “value based” care has driven home healthcare revenue growth. Demand for accountability and positive health outcomes is stronger now than ever as America's population has aged. Hospitals and nursing facilites are under pressure to harness technology to treat what is necessary – rather than “whatever we can throw at it”. Home healthcare has proven to be a home-run for everyone. Hospitals can discharge faster, with higher risk patients, and see better outcomes. CMS mandates for EMR compliance, readmission reduction and lower ER visits are met. And, best of all, patients are healthier, better informed and more in control of their healthcare.
Canexxia’s addressable market includes services funded by the Medicare/Medicaid, private health insurers and other parties. Medicare alone provided for over 6 million individual visits $18 billion in FY18 out of the $103 billion total home healthcare market. Industry revenue is expected to rise at an annualized 4.8% over the five years through 2020-25, to $173 billion. This includes anticipated Medicare spending growth of 8% in 2019-20.
