Moving patients from hospitals to nursing homes has never been easier

A huge opportunity in a $31 Billion Industry

Present-Day Cycle

Hospital Books Room for Patient in

Nursing Home

Nursing Home Reviews and

Accepts Patient

Hospital Stuck with

Patient

Nursing Home

Overbooks

30% of Bookings

Cancelled by Hospitals¹

1.Eugene Litvak, PhD. http://isites.harvard.edu/fs/docs/icb.topic1418162.files/Class%2011%20Slides%20-%20Part%201.pdf2.Centers for Medicare & Medicaid Services 2010. http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/Reports/downloads/costdriverstask2.pdf 3. LeadingAge.org 2011. http://www.leadingage.org/2012_Skilled_Nursing_Facility_Prospective_Payment_System_Final_Rule.aspx

Avg cost of $1,100 per avoidable stay2

Avg of 1,150 preventable stays/year/hospital3

A Focused Issue

Unable to consistently send patients to nursing homes when needed

Overbooking due to high volume of cancellations (30%)

Hos

pita

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Nur

sing

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es

Competitor Analysis

There remains unmet needs of real-time reservations and complete coordination of patient referrals to

nursing homes.

Status Quo

An Average of 130 Nursing Homes

Our B2B Solution: HandOff would be the first and only platform to address

● nursing home bed availability● overbooking

Demo

A Subscription Pricing Model REVENUE Year 1 Year 2 Year 3 Year 4 Year 5

Subscription Model ($60k/Year) 60,000 60,000 60,000 60,000 60,000

# Hospitals 3 10 30 75 150

Subscription Revenue $180,000 $600,000 $1,800,000 $4,500,000 $9,000,000

Nursing Home (FREE) 0 0 0 0 0

Advertising on Listing Page $5,000 $5,000 $15,000 $20,000 $60,000

Net Revenue $185,000 $605,000 $1,815,000 $4,520,000 $9,060,000

COSTS

Company Expenses (2 FTEs+ Equipment)

100,000 250,000 300,000 400,000 400,000 1,000,000

PROFITS/LOSSES -100,000 -65,000 305,000 1,415,000 $4,120,000 $8,060,000

Solved Pain PointsH

ospi

tals

Nur

sing

Hom

esPatient Throughput

Bundle Payment Retention

Patient Care Time

Administrative Time

Overbooking

Optimizes Patient Flow

Administrative Time

Deploying to Market and Future Expansion

1.http://kff.org/medicare/state-indicator/per-enrollee-spending-by-residence/

Nursing Homes

Acute Care

Long-Term Acute Care Hospitals

Inpatient Rehab Facilities

Assisted Living Facilities

North Texas Area (TX has 4th

highest medicare spending/capita¹)

Expand geographically across the U.S.

Future Features

Helena WangComputer Science ’15

Technical

Clinical

Business

Will FengComputer Science ‘15

Allen WangMD/MPH Candidate

Dhruva ChandramohanNIH Clinical Researcher

Nichita KulkarniSenior consultant, Social Business

Consulting

Avinash MuruganBusiness Consulting,

Non-profit founder

Tiffany LeeBusiness Consulting

Our Team

This is our progress in the last 24 hours.

Imagine what we can do going forward.

Fin

A Costly ProblemMedicare’s solution:

align payments across PAC providers for select

conditions¹ → revenue decrease for

PAC providers

Medicare’s payments to more than 29,000 PAC providers totaled $59B in 2013, more than doubling since 2001¹

¹Medpac March 2015 Report.

Counterbalance decrease in revenue

by increasing efficiency

StatisticsCost to Hospitals$3.1 Billion¹ write off annually in avoidable stay costsAvg of 1,150 preventable stays/year/hospital²Avg write-off cost of $1,265,000/year/hospital²

Reimbursement TrendsMedicare reimbursement to nursing homes cut by 11.1%¹ (-$6.4 Billion)No longer fee-for-service, moving towards bundled payments

1.Eugene Litvak, PhD. http://isites.harvard.edu/fs/docs/icb.topic1418162.files/Class%2011%20Slides%20-%20Part%201.pdf2. LeadingAge.org 2011. http://www.leadingage.org/2012_Skilled_Nursing_Facility_Prospective_Payment_System_Final_Rule.aspx

Single Hospital Revenue Proposition$500 M Revenue,$16K per patient¹

(Median among US States)

1.http://www.ahd.com/state_statistics.html2.Cost Drivers for Dually Eligible Beneficiaries. Centers for Medicare & Medicaid Services. August 2010.

Our Potential Value Add:$35 Million(7% of Revenue)

Saving of $1K per patient²$535 Million Revenue,

Pricing and Relevance/Exit

DischargePatients

Moving patients from hospitals to nursing homes has never been easier…

in this $31 billion nursing home industry

Profit per patient-day (Hospitals, and NH)Efficiency (% of patient-days that are non-PAD)% of # of patient days$2157 (expense per hospital patient day)¹$17K (revenue per hospital patient day)²1. http://www.ahd.com/state_statistics.html2. http://kff.org/other/state-indicator/expenses-per-inpatient-day/

Discharge

Patients

Patients

Discharge

Discharge

Patients

Patients

Discharge

Our Product

Key Stakeholders

$31 billion industry.

Nursing Homes

Discharge

Patients

Patients

Discharge

Revenue Proposition

Hospital Alone(Baseline)

Hospital + Nursing Home

(Potential)

Hospital + Nursing Home

(Actual)

Our Value Contribution