Specialist
Former SVP at Alliance Healthcare Services Inc
Agenda
- Alliance’s business segments overview, including radiology, oncology and intervention
- Historical challenges and restructuring initiatives
- Competitive landscape and positioning vs key players such as RadNet (NASDAQ: RDNT)
- Akumin’s (NASDAQ: AKU) agreement to acquire Alliance, highlighting potential strategic benefits, opportunities and integration challenges
- H2 2021 outlook post-acquisition and strategic assessments
Questions
1.
What major trends and developments have you been following in the radiology and outpatient services JV space over the past 12 months?
2.
How has Alliance Healthcare’s story evolved over the past few years in light of the aforementioned trends?
3.
To what extent have pandemic-driven profitability pressures on large hospitals and health systems affected expenditure on mobile imaging and radiology solutions? How much of a material headwind is this for Alliance?
4.
What is Alliance’s rough breakdown between commercial, Medicare and Medicaid demographics and how is the reimbursement environment for Alliance trending right now?
5.
How might macro patient population shifts from coronavirus – such as going to government from commercial insurance due to unemployment – affect some of the reimbursement structures you mentioned?
6.
How are you assessing consolidation trends among large hospital systems? How might a smaller concentration of customers affect Alliance’s contract renewal prospects?
7.
How detrimental would losing one of the large hospital system contracts be for Alliance’s top line?
8.
What have been some of the historic pain points for Alliance’s business that led to underperformance and weak cash flow?
9.
What can Alliance do to fight some of the downward pressure on revenues, despite its successful contract renewal efforts?
10.
How much of a material strain on margins is Alliance’s high CAPEX? Are there levers it can pull to reduce CAPEX?
11.
What are your thoughts on Akumin’s strategic rationale for its impending acquisition of Alliance? What advantages or synergies could potentially be leveraged from this deal?
12.
Do you anticipate any major execution risks or integration challenges to bringing Alliance under the Akumin umbrella? Could you elaborate on the synergies or lack thereof between the businesses?
13.
Do you think Akumin is likely to spin off one or more of Alliance’s segments with fewer synergies or a weaker operating profile? Which might be likely potential candidates here?
14.
What is your assessment of Alliance’s oncology franchise? How should we frame its growth prospects or competitive positioning?
15.
How long might it take to work out any potential integration issues? When do you think integration could be fully realised?
16.
Who are the major players that Akumin-Alliance will compete with and how are they relatively positioned? Are there any areas of differentiation regarding service offerings or market share dynamics to note?
17.
How would you describe the overall saturation of this market? What are some of the barriers to entry for new players and is there any material threat to the legacy incumbents?
18.
What are the advantages or disadvantages for hospitals building out some services in-house? What’s the upfront investment to build out these capabilities?
19.
Are you monitoring any other regulatory developments pertaining to the radiology sector and the Akumin Alliance JV, perhaps surprise billing legislation or otherwise?
20.
Is there anything we haven’t discussed during today’s Interview that it might be important to highlight?
21.
What is your 12-18-month outlook for Akumin-Alliance? What are the most important factors to monitor over that time frame?
