Note: This is a "guest column" written by a friend of Growth Stock Insider (Jody Cain of Financial Profiles). The information has been obtained from sources believed to be reliable but it is not guaranteed either bgy the author or Growth Stock Insider.
Apollo
Medical Holdings, Inc. (ApolloMed)
(AMEH: $0.53) is a leading integrated healthcare services company for
patients, hospitals, health plans, physicians and other key healthcare
stakeholders. ApolloMed’s mission is to provide high-quality,
cost-effective inpatient and outpatient care for all patients with a particular
focus on acute, high-risk and senior populations. In addition to providing hospitalist, ICU and
physician advisory services at more than 50 hospitals, facilities and clinics,
ApolloMed provides medical management and care coordination for more than 1,000
physicians and tens of thousands of patients through its value-based,
results-driven solutions. ApolloMed has been providing the solutions that lead
to measureable results for nearly a decade and has core networks in California,
Ohio and Mississippi.
ApolloMed
is successfully capitalizing on changing healthcare dynamics: ApolloMed’s goals are aligned with the
current industry dynamics of providing high-quality, cost-efficient healthcare
services. Healthcare costs currently top
$2.7 trillion in the U.S., representing about 18% of the total U.S. GDP, with
more than 50% going to hospitals and physicians. These costs continue to rise, driven in part
by increasing numbers of older Americans who account for high levels of
healthcare expenditures, and by more Americans gaining healthcare coverage
under the Affordable Care Act.
Fee-for-service healthcare plans lead to inefficiencies based on the
absence of a comprehensive, integrated approach. Health plans are moving away from the
fee-for-service framework to a more integrated accountable care model. ApolloMed has the capability to assume a full
range of financial risk offerings.
ApolloMed has a proven
ability to grow healthcare networks: ApolloMed
offers inpatient and outpatient solutions and has undergone rapid growth by
building networks that include hospitalist services, Accountable Care
Organization (ACO), independent physician associations (IPA) and outpatient clinics. The company is validating its model by
developing partnerships with industry leaders, including Fresenius Medical Care
for end-stage renal disease and a strategic partnership; Boehringer
Ingelheim for COPD chronic care management; and Rite Aid for
community-based health treatment for patients with chronic and poly-chronic
conditions.
Driving revenues through
“Best in Class” medical management and operational efficiencies: ApolloMed provides the
management and data analysis infrastructure to support improved case management
and physician-led programs. The
company’s incentive are aligned with physicians and hospitals. Its financial risk offerings include Low Risk
through traditional contract billing or physician staffing through hospitalists
services and clinics (more than 80% of fiscal 2014 revenues); shared savings
through its ACO, which is a 50/50 split in cost-savings with Medicare
(ApolloMed showed a $3.1 million preliminary interim cost savings with
potential distribution in 2H14); and partial and full Risk through its IPAs.
This is a capitated model with health plans providing a per-member/per-month
fee and ApolloMed’s IPA assuming all responsibility for patient care and
financials.
ApolloMed
is positioned for aggressive growth through its defined strategy. The company strengthened its balance
sheet to support growth through a strategic investment from partner Fresenius
Medical Care for up to $12 million announced in April 2014. The investment includes $2 million in equity
at $1 per share, which is 2Xs the current stock price. The company is focused on strategic
acquisitions and partnerships that expand its network and service
offerings. The company is also looking
to improve the economics of its ACO and IPA through its increasing scale. The company has developed a platform and
infrastructure that can be replicated in additional geographies.
ApolloMed is physician led by Chief Executive
Officer Warren Hosseinion, M.D., who founded the company with Chief Medical
Officer Adrian Vazquez, M.D. in 2001.
Recently the company announced the appointment of Mitchell R. Creem as
CFO, who is a seasoned healthcare executive with more than 30 years of industry
experience, including CEO for the
Keck Hospital of USC and USC Norris Cancer Hospital and Associate Vice
Chancellor and Chief Financial Officer for the UCLA Medical Science. Senior management is rounded by Chief
Strategy Officer Mark Meyers, who has more than 30 years of healthcare
experience and is the former Senior Vice President of Operations for Dignity
Health.
This blog
contains certain forward-looking statements with respect to Apollo Medical
Holdings, Inc. Forward-looking statements are statements that are not
descriptions of historical facts and include statements regarding management's
intentions, beliefs, expectations, plans or predictions of the future, within
the meaning of the Private Securities Litigation Reform Act of 1995. Because
such statements include risks, uncertainties and contingencies, actual results
may differ materially and in adverse ways from those expressed or implied by
such forward-looking statements. Additional information concerning Apollo
Medical Holdings, Inc. and its business including additional factors that could
materially and adversely affect its financial results including, but not
limited to, the risks described in its annual report on Form 10-K and in other
filings with the SEC.