Services
Value Proposition
OPERATING CASH FLOWS:
Value from acquisition of practices that generate significant monthly cash flow from clinic operations. AHH has arrangements to take full financial risk for MediCare Advantage patients in the practice that significantly increases monthly cash flow. This value of the monthly cash flow stream is expressed as a multiple of EBITDA.
OPERATING CASH FLOWS:
The Federal Government created MediCare Advantage programs as a form of value based reimbursement administered through its contracted Health Plans that agree to be at risk for the cost of care of Medicare Advantage Patients assigned to them. These Value Based Systems incentivize Health Plans to manage patients in a way that improves care and reduces cost and that in turn generates savings that Health Plans and their delegated physician groups share.
- The value of the MediCare Advantage patient is realized by assuming full financial risk for the cost of MediCare patients and then implementing programs to realize savings.
- The value of a MediCare Advantage patient when under full financial risk is approximately $12,000 based upon a per patient annual savings of $2,500 per year per patient. Our projection estimates value of MediCare Advantage patient at $7,500 per patient
AHH has agreements to acquire a “Platform” Group Practice with a large community footprint in a specific area where there are numerous independent Inland Empire Southern California physicians who can aggregate their MediCare Advantage Patients with AHH in the form of a sale of their practice. The sale will provide value to the selling physician and will position AHH to acquire MediCare Advantage patients. We expect the average cost of MediCare Patient acquisition through “Non- Platform” practice purchases that will be “rolled” into the “Platform” to be approximately $1,500 per patient.