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Health Care Overview The health care portfolio is divided into three segments in which opportunities exist for profitable growth: Ambulatory Surgery Centers, Imaging Centers, and Intervention Centers. Acquire One will pursue a strategy that integrates the delivery of these services using a community approach through health care malls, which will significantly reduce the need for capital investment in large building infrastructure while focusing on speed and convenience for patients. This strategy maximizes operational effectiveness while boosting revenues through increased volume and greater margins from each procedure. Initially, Acquire One’s primary focus will be on the acquisition of Ambulatory Surgery Centers. However, acquisitions of Imaging and Intervention Centers will be analyzed on an opportunistic basis. Ambulatory Surgery Centers Ambulatory Surgery Centers (ASCs) have grown at rate of 7.1% per year since 1996. As of August 2005, there were 4,954 ASCs in the United States providing over 3.5 million surgical procedures to Medicare beneficiaries generating $1.9 billion in related payments. Acquire One will focus on acquiring ASCs that provide more profitable procedures including cosmetic and orthopedic surgeries. Since 1997, there has been a 50% annual growth rate for cosmetic and orthopedic surgeries within the United States. An estimated four million cosmetic surgeries were performed in 2005 and this number is expected to increase with the aging of the baby boomer population. The issues impacting profitability in health care include 1) low volume due to patient dissatisfaction; 2) operational inefficiency due to limited use of information technology; and 3) slow reimbursement of fees from payors due to billing errors. Acquire One’s core strengths include experience among its members in successfully building, operating and renewing ASCs, and a network of established relationships with physicians and health care executives throughout the country, which will increase the probability of success in the marketplace. Diagnostics Centers Diagnostic Imaging Centers (DICs) are experiencing tremendous growth as people move to the outpatient segment to have CT scans, MRIs, x-rays and ultrasounds. Between 2002 and 2003 there was a 17% overall growth in the number of imaging procedures. DICs are attractive because if run well, the services are well reimbursed. As of August 2003, there were 4,482 DICs in the United States. Acquire One will acquire DICs and integrate them into the Health Care Mall Concept with ASCs. The issues impacting DICs are consistent with those generally found in the health care industry. Acquire One’s integration strategy, health care mall delivery system, and focus on patient and associate satisfaction will drive significant growth and profitability in this market segment. Substance Abuse Intervention Centers Substance Abuse Intervention Centers provide treatment and solutions for psychological and physical addictions. These centers have decreased overhead requirements, especially human resource expenses and liability insurance. They provide treatment for a variety of addictions including drugs, alcohol, and other substances. The economic cost of drug abuse in the United States was an estimated $180 billion in 2002. With a projected 5.3% growth rate, the estimated economic cost of drug abuse will reach $218 billion in 2006. Drug abuse is considered one of the most costly health problems in the nation. There is a significant need for Intervention Centers within Urban America and inner cities. Acquire One will start-up, acquire and integrate Substance Abuse Intervention Centers into the Health Care Mall Concept with ASCs and DICs. The issues effecting Intervention Centers are consistent with those generally found in the health care industry. Acquire One’s integration strategy, mall delivery system and focus on patient and associate satisfaction will drive significant growth and profitability in this market segment. ©2007 Acquire One, LLC |
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