Dirk Soensken Presents Ceresti Health at LSI USA '23

Transcription

Dirk Soensken  0:05  

Thank you everybody. Dirk Soensken here to talk more about healthcare than about devices. To say that we don't require FDA approval clearance. There's no CPT code, we're focused on value based care focused on a big portion of health care. There's a huge blind spot and whitespace that I want to talk to you about. My name is Dirk Soensken, I'm the CEO Ceresti Health. Before I started service, they actually built a medical device company that we sold successfully to Danaher and the pathology lab medicine space. So appreciate the great challenges of people building these devices. Want to give you just a quick overview, if you think about seniors over the age of 65, were eligible for Medicare. They're managed largely now by private insurance companies called Medicare advantage health plans. And these organizations have a hard time to actually engage those patients that can self direct their care, think Alzheimer's, stroke, Parkinson's, so they have pretty bad outcomes. And it turns out, if you actually work through the family caregiver, which is a spouse or an adult child of that patient, you can get dramatic improvements in utilization, quality, and cost, right. So we've proven that in a clinical study, where we've actually empowered and activated spouses and adult children of patients with dementia. And we've seen a $6,500 per year reduction in medical costs. And if you understand how these health plans work, there's other things they care about that drive revenue, and also quality improvements. So that's really significant. In terms of a new opportunity for these health plans, we, we have a revenue model that drives about $1,600 per year, per enrolled member in revenue. We've got a large market, I'll talk more about this. And we've got about $50,000 a month in revenue. Now, that's tripled over the last 12 months. And our expectation is to triple that again, year over year. We're now in the commercialization phase, having spent the last sort of five or six years building the platform and proving its value. So just to put some sort of shape to what I'm talking about, what you see in the middle of the doughnut are the 20% of patients who can't currently engage the health care system. And they drive half the cost. So this is really a blind spot, think about health care, all the things you know that exist, they can't get to these 50% of to these members who drive 50% of cost. So that's a big opportunity. Right? These are patients that can be found using claims data, Alzheimer's, stroke, Parkinson's, traumatic brain injury, cancer ESRD, right. There's patients who just depend on a family caregiver, we know how to find them, we know how to enroll them, and they have bad outcomes. So you know, in this audience, not sure if you guys speak this language, but you know, you have $2,800 per month and costs, you have most hospitalizations incurred by this population. And they bring down things that have to do with risk adjustment, and start bonus payments for health plans. So why is the family caregiver uniquely able to make an impact, they have a superpower, which is actually like can observe their loved one, and they care. So they're really motivated to help out. And as a result, it's very easy for them to detect a change in condition before it worsens. So if you have an older adult, that one thing that drives them to the hospital is there's some sort of a change in condition like a change in mental status, a change in the rate at which they go to the bathroom change in appetite. That's usually indicative of some underlying problem. And on the slide, what's on the right hand side are the top reasons why somebody goes to the hospital, falls, sepsis, heart failure, diabetes, so actually unmanaged chronic conditions, infections, they get out of control, and then falls, right, nothing rocket science, and you can easily teach a family caregiver what to do on the left. So we've developed a digital health platform. First of all that figures out how to enroll these people. And we support the caregiver, we improve their wellness, we activate the caregiver, which means we improve their knowledge, skills and confidence how to take care for a loved one, we send a tablet to the caregiver cell enabled, we pair them with a social worker coach, that's our remote employee to nudge them along with personalized health education that's deployed on the tablet, we got about 40 minutes a week of engagement and we asked the caregiver to remotely monitor their loved one by observing them. Right You can't you can't use no device to detect the change in mental status. You just have to observe it. And so as a result is already said we we get massive reductions in medical costs. We improve revenue for health plans by improving the accuracy with which providers will code their patients. We improve patient experience that drives bonus payments for health plans, and we reduced length of stay by about three days. That's pretty significant. So In this study, we reduce hospitalizations by an astonishing 80%. Against the comparison group that was propensity matched against 164 patients were enrolled in the study, we reduce 30 Day readmissions by 73%. We reduced total medical cost by 53%. So this is really the slide that drives it all home. If you look at the and we're using dementia here as an example, if you look at the height of the purple bar, those are patients with dementia. And then each one of these segments sort of says dementia and diabetes, dementia and COPD, dementia and CHF. Okay. And you start to say, why is that bar so high relative to the light blue bar, which are patients with that condition without dementia. So this shows you that when you have a condition where you can't self manage, it has a huge multiplier effect on what's shown here, which is utilization or hospitalization rate. The green bar is what we achieved in the study. So you can see we completely extinguished this multiplier effect. By activating the caregiver, this is better than a housecalls program, right? It's better than any other approach. And we believe we can build a successful business, first of all by by getting more data, and then ultimately, in this space, you have to take risks to be successful. Right, we want to become the company that can approach a health plan says, give me all of your patients who have caregivers, so we know how to find them, we'll take risk. And if you look at all the unicorns that have been built in the space, whether it's landmark, Prospero village, MD, Oak Street, all those companies, they were all companies taking risk. Right? Nobody has ever taken risk in this population, before we're the first, we think there's a huge opportunity to build a market, there's 32 million US seniors currently eligible for Medicare Advantage, we can pretty much say that 20% of them likely have a family member that helps them with their care, we can today enrolled 20% of those. So that's 1.2 million times about 1600 assets, a $2 billion, your market today and Medicare, obviously, as adjacent markets and Medicaid, and a few other places. We have grown our pipeline dramatically. We're all about commercialization. So you can see here in the blue bar, yeah, we're we're out we're presenting, we now have the data that's required to get some of these organizations into the pipeline. We've tripled our sales in the last three months. And we expect to do the same thing. Again. We have a team that's comprised of somebody, Mark Grant, who was my co founder at Aperio. That was my medical device company. I have a few folks who are sort of experts in managed care, population health, Medicare Advantage, who are helping me build a business, we're looking for a $5 million Series A round, right, we expect to achieve about $800,000 per month in revenue, you know, in the first quarter of 2024. And this is really just all about commercialization, we need to hire more salespeople, there's multiple swim lanes where we think we can make more progress, obviously, an opportunity improve gross margins as well. So why should you care about this business? So what you see here in the graph is how many people in the US will be over the age of 65 by 2040. So you see that's growing rapidly. What you see in purple is a proportion that will be on Medicare Advantage. So we're at 5050 now and in the next 20 years, 70% Maybe even higher will be on Medicare Advantage. Everything is moving to the home. Right? You see all the acquisitions in health care, Walgreens buying village MD. You see CVS buying companies, everybody Humana about Kenworth, they're all moving to the home. Everything is moving to value based care. And there's a shortage of nurses and physicians, so you have to leverage the family. So the business we're building is fully supported by all of the tailwinds that you see in the macro environment. And just as a reminder, we don't need FDA approval, don't need FDA clearance. We don't need a CPT code, right. So this business is ready to rock. Basically, now that we have the data thanks for your attention.