Specialist
Former AVP
Agenda
- Operating environment for American Addiction Centers (OTC: AACH), including key headwinds contributing to distressed state
- Patient acquisition strategies for American Addiction Centers (AAC)
- Payer reimbursement trends and AAC’s revenue cycle
- Outlook on AAC and ability to correct major business failures of 2019
Questions
1.
What key trends and themes have you been following in the addiction treatment sector?
2.
How has American Addiction Centers’ [AAC’s] story played out over the last couple of years?
3.
How should we think about the TAM within addition treatment? What sorts of factors should we consider to size the market?
4.
What are your thoughts around penetration rates? How well-distributed are these centres, and what percentage of the US population has local access to a centre? Given the high-demand, low-supply dynamic, if there is one, from AAC’s perspective, does it select a small minority of patients based on insurance coverage and ability to pay?
5.
For AAC, what is the payer split like between Medicare, Medicaid, commercial and other? For the less- than-ideal relationships you mentioned, does that ring true for commercial as well as government payers?
6.
What is the significance of the loss of Google as a referral source? Was this driving any increased patient engagement during your time at AAC?
7.
With claw backs, does that refer to money AAC is trying to claw back from payers, or money that payers are trying to claw back from AAC?
8.
From a supervisory level, do you have any insight into the allegations around improper supervision when a patient death occurs at one of AAC’s facilities?
9.
What are your thoughts on AAC’s cash flow generation opportunities? What do you think of its ability to sell individual centres to other players? How many potential players, on average, could be interested in each of the individual assets? What is the dynamic for an individual centre as a potential asset sale?
10.
What do you think led to the continually weakening operating trends for AAC? Is it a product of declining volumes, inefficient cost structure, or the payer dynamics we discussed? Could you rank the factors leading to AAC’s continual decline?
11.
Is there anything we haven’t spoken about that you think is important to touch on? What is your outlook for AAC over the next 12-18 months? Is bankruptcy likely? If not, what are some factors to monitor?
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