Adapthealth Corp. · NASDAQ:AHCO
Adapthealth — Investor Day (September 2022)
147 slides from Adapthealth's investor day presentation, Sep 16, 2022
Slide 1: Capital Markets Day 2022
SEPTEMBER 16, 2022 Capital Markets Day 2022 PIONEERING THE SHIFT TO C O N N E C T E D C A R E AT H O M E DRAFT AS OF 09/02/22
Slide 2: Welcome
Welcome C A P I T A L M A R K E T S D AY 2 0 2 2 Anton Hie Vice President, Investor Relations
Slide 3: Cautionary Statement
Cautionary Statement Forward-Looking Statements This presentation contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future business, events, trends, contingencies, financial
Slide 4: Agenda
Agenda AGENDA Welcome Anton Hie VP, Investor Relations Strategic Vision Steve Griggs Chief Executive Officer Transforming Care by Keeping Patients Healthy at Home Delivering Efficiencies through Scale + Technology + Driving Efficiencies + Building Scale Josh Parnes President + Scalable Technology Pl
Slide 5: AdaptHealth
+* adapthealth
Slide 6: Strategic Vision
Strategic Vision TRANSFORMING CARE BY KEEPING PAT I E N T S H E A LT H Y AT H O M E Steve Griggs Chief Executive Officer
Slide 7: AdaptHealth today: strong foundation to build upon
CEO SECTION AGENDA Our critical role: transforming healthcare at home AdaptHealth today: strong foundation to build upon Clear strategy to optimize opportunities 7
Slide 8: Strategic ambitions guided by our vision
O U R S T R AT E G I C A M B I T I O N S A R E GUIDED BY OUR VISION Be the leading provider of Improve equipment + services patient lives that empower + healthcare at home Reduce overall through best-in-class care cost of care + superior technology
Slide 9: Strong foundation: market leading provider of sleep, diabetes and respiratory solutions
S T R O N G F O U N D AT I O N Market leading provider of sleep, diabetes + respiratory solutions—an integrated, patient-centric, tech-enabled model $2.9B 2022E revenue ~90% recurring revenue ~6X revenue growth since 2019 COMPREHENSIVE U N M AT C H E D D I F F E R E N T I AT E D PORTFOLIO S C A L E
Slide 10: Growing network of touchpoints into the home
Growing network ~36K Daily Home of touchpoints Deliveries into the home ~2.6K >1K Insurance Partnerships AdaptHealth Healthcare Professionals ~1K ~140K Health System 3.9M PCPs and Specialists Partners Patients Actively prescribing one or more target therapies to AdaptHealth 10
Slide 11: A national network with a local presence
A national network with a local presence Why scale matters ✚ Leverage created by technology 759 locations in 47 states ✚ Closer to the customer 36,000 deliveries every day ✚ Last mile and logistics touch points 11
Slide 12: Comprehensive solutions address a range of chronic diseases
Our comprehensive solutions address a range of chronic diseases—top 3 position across the portfolio SLEEP DIABETES R E S P I R AT O R Y HME SUPPLIES PATIENT Obstructive Sleep Diabetes COPD CHF Multiple Diseases DISEASES TREATED Apnea (OSA) Chronic Respiratory Various Failure OUR CPAP machines Contin
Slide 13: Chronic disease is the largest driver of healthcare spending
Chronic disease is the largest driver of ~$4 trillion healthcare market spending We offer the solution ✚ Monitor patients at home ✚ Treat patients at home ✚ Keep patients at home 13
Slide 14: Patient-first, tech-enabled care model
AdaptHealth’s patient-first, tech-enabled care model plays a critical role in the healthcare continuum Our leading therapies and more than 1,000 clinicians help improve and save lives DISEASE LINKED TO THERAPY BENEFITS CLINICAL CARE TEAM ROLE “3 PILLARS OF HEALTH” + Increased risk of • Improved qual
Slide 15: Our critical role: transforming healthcare at home
CEO SECTION AGENDA Our critical role: transforming healthcare at home AdaptHealth today: strong foundation to build upon Clear strategy to optimize opportunities 15
Slide 16: Key strategic achievements – last 2 years
Key strategic achievements – last 2 years ✚ Completed integration ✚ Pioneered e-prescribe, of AdaptHealth and e-ordering and e-delivery AeroCare Laying the ✚ Launched cross-selling ✚ Ongoing integration of initiatives foundation for Diabetes businesses delivering on ✚ Managed through market ✚ Integr
Slide 17: Tremendous progress executing on our strategic vision
Tremendous progress executing on our strategic vision —investments made will support our growth going forward E A R LY I N N I N G S 2022 PRE-2021 Established Scale + Optimizing Building Capabilities Our Capabilities AdaptHealth 2.0 ✚ Built geographic density ✚ Further integrating teams, ✚ Integrate
Slide 18: Our critical role: transforming healthcare at home
CEO SECTION AGENDA Our critical role: transforming healthcare at home AdaptHealth today: strong foundation to build upon Clear strategy to optimize opportunities 18
Slide 19: Strategies to unlock growth + earnings potential
CLEAR PRIORITIES Strategies to unlock growth + earnings potential C A P I T A L I Z E O N T O D AY ’ S B U S I N E S S P O T E N T I A L + UNLOCK TOMORROW’S OPPORTUNITIES 1 2 3 4 Non-acquired Operational Strategic AdaptHealth 2.0 Growth Excellence M&A Transform connected Sleep, Respiratory, Diabetes
Slide 20: Positioned to benefit from PAP equipment normalization
NON-ACQUIRED GROWTH Positioned to benefit from PAP equipment normalization Opportunity for share gains as PAP PAP rental census supply normalizes FOCUS AREAS ✚ Making difference for 6/21 7/21 8/21 9/21 10/21 11/21 12/21 1/22 2/22 3/22 4/22 5/22 6/22 referral sources and their patients A C T I O N S
Slide 21: Leveraging our strengths to optimize non-acquired growth
NON-ACQUIRED GROWTH Leveraging our strengths to optimize non-acquired growth opportunities TECHNOLOGY K E Y I N I T I AT I V E S PAT I E N T A D V O C AT E S COMPLIANCE ✚ E-prescribe RCM ✚ Expand care-based model EXCEPTIONAL ✚ Deeper payor engagement Patient + Provider Engagement 21
Slide 22: Industry tailwinds support non-acquired growth ambitions
NON-ACQUIRED GROWTH Industry tailwinds support our non-acquired growth ambitions AGING P R O D U C T C AT E G O R Y GROWING P O P U L AT I O N G R O W T H E S T I M AT E S PREFERENCE U.S. population aged 65+ of adults prefer to receive (millions) +2.7% CAGR 73.1 7 to 10 % Growth Projected SLEEP % 86
Slide 23: Multiple levers for margin improvement
O P E R AT I O N A L E X C E L L E N C E Multiple levers for margin improvement ✚ Operating leverage ✚ Critical technology ✚ Broader product enhancements 2025 Goal portfolio ✚ Effective RCM ✚ Geographic scale ✚ PAP equipment + 25 % supply chain ADJ. EBITDA MARGIN* normalization *Non-GAAP measure. Re
Slide 24: Positioning AdaptHealth to lead the shift to connected care
E X E C U T E A D A P T H E A LT H 2 . 0 Positioning AdaptHealth to be a leader in the shift to connected care – building on strengths we have already invested in T O D AY FUTURE E A R LY I N N I N G S Leading the Pioneering the shift to connected market health solutions ✚ Top 3 across portfolio ✚ I
Slide 25: Committed to advancing ESG efforts
F O U N D AT I O N A L I M P E R AT I V E Committed to advancing ESG efforts to drive value for team members, customers, shareholders + communities PROGRESS FOCUS AREAS ✚ Established Board oversight Ethics & Our People ✚ Implemented cross-functional ESG Accountability ✚ Employee Task Force and DEI C
Slide 26: Seasoned leadership team executing our strategic vision
Seasoned leadership team executing our strategic vision Steve Joshua Jason Chris Griggs Parnes Clemens Joyce Chief President Chief General Executive Financial Counsel Officer Officer Dan Rodney Joel Albert Bunting Carson Mills Prast COO President & Chief Chief Field COO People Technology Operations
Slide 27: Supported by an experienced board
Supported by an experienced board B R O A D & R E L E VA N T EXPERIENCE ✚ Business Leadership & Operations Richard Greg Brad Terence J. Steve ✚ Strategy Planning & Execution Barasch Belinfanti Coppens Connors Griggs Chairperson Board member Board member Board member Board member ✚ Healthcare since 2
Slide 28: In Summary: tech-enabled, patient-first integrated care model
IN SUMMARY Improving patient lives + lowering healthcare costs via a tech-enabled, patient-first integrated care model 1 2 3 A transformed Capitalizing on Execute on business value embedded in AdaptHealth 2.0 more scale, efficiencies + business today innovative pioneer in the value creation potentia
Slide 29: Delivering Efficiencies through Scale + Technology
Delivering Efficiencies through Scale + Technology E N A B L I N G B E T T E R O U T C O M E S F O R PAT I E N T S , P R O V I D E R S , PAY O R S … A N D A D A P T H E A LT H Albert Josh Prast Chief Parnes Technology President Officer
Slide 30: Delivering scale + diversification via M+A
M + A VA L U E C R E AT I O N Delivering scale + diversification via M+A PRO DUCT S + Various HME CHAN NE LS 2019 Jan 2020 June 2020 June 2020 Jan 021 Q3 2021 T O D AY Sleep + + Respiratory + + ✚ More scale HME + + Supplies + ✚ Improved Diabetes + purchasing E-commerce + efficiencies Infusion + SCAL
Slide 31: Continuing to leverage FCF to pursue M&A
M & A VA L U E C R E AT I O N Continuing to leverage FCF to pursue M&A P U R S U E TA R G E T E D M & A I N T E G R AT E & O P T I M I Z E Strategic Synergy criteria opportunities ✚ Further consolidation of ✚ adherence current portfolio categories ✚ resupply ✚ Add additional ✚ cross-sell scale/geogr
Slide 32: Tangible progress transforming operations
E F F I C I E N T O P E R AT I O N S Tangible progress transforming operations, compelling benefits Operational PRIORITIES To come… ✚ Capturing meaningful synergies, including branch Integration of consolidation, vendor spend reduction, RCM outsourcing AeroCare merger complete ✚ Helping offset impac
Slide 33: Driving efficiencies to reduce operating expenses
E F F I C I E N T O P E R AT I O N S Driving efficiencies to reduce operating expenses PEOPLE + INFRASTRUCTURE REVENUE PER EMPLOYEE*** KEY DRIVERS Cost as % of Revenue* (est., $ in 000s) ✚ Greater scale + 53% $265 value (M&A) $229 44% $224 ✚ Cloud-based 41% 41% $204 capabilities (RCM, ERP, HCM) ✚ In
Slide 34: Driving Efficiencies + Building Scale
Driving Efficiencies + Building Scale Scalable Technology Platform 34
Slide 35: Enabling the home healthcare market's digital transformation
Enabling the home healthcare market’s digital transformation with modern, digitized workflows integrated into patient care HISTORICAL HME OUR FOCUS Highly Manual & Modern, Digitized + Better patient care Labor Intensive Workflow ease of use, more transparency, better results + Better referral partne
Slide 36: Committed to investing in IT to improve patient outcomes
We are committed to investing in IT to improve patient outcomes and reduce system costs S T R AT E G I C S O L U T I O N S Stack investments today R&D developing software ✚ Ensure security, compliance and governance T O O L S T H AT E N AB L E ✚ Simplify data exchange and Technical & monitoring over
Slide 37: Patient-centric, integrated suite of digital tools
O U R D ATA A D VA N TA G E OTL ✚ Proprietary cloud-based Patient-centric, mobile delivery myAPP integrated suite ✚ Seamless Diabetes supplies reordering of digital tools Partner Order Tracking ✚ Faster resolution E-Prescribe eR/x to ordering issues ✚ Digital ✚ Reduced labor prescriptions needs ✚ Be
Slide 38: OTL: Proprietary cloud-based mobile delivery software
A C L O S E R L O O K AT O T L OTL: Proprietary cloud-based mobile delivery software Answering industry need for Full scale + nationwide digital transformation ✚ >8MM deliveries since inception in 2015 ✚ Secures electronic business solutions ✚ 686 combined locations + eliminates paper ✚ 7,587 active
Slide 39: Strong engagement and customer satisfaction
Strong engagement and customer satisfaction 4.8 YTD 2 0 2 2 Google rating (corporate office) ✚ Total of 2MM OTL deliveries ✚ 402K OTL ratings received ✚ 20% average response rate 39
Slide 40: Building out our e-commerce solutions
A C L O S E R L O O K AT E - C O M M M E R C E Building out our e-commerce solutions Enable 360° Direct orders from existing patients INSIDE THE ADAPT ECOSYSTEM patient relationship AUDIENCE DME customers TACTICS Email, referrals, traditional sales + Initial focus on CPAP channels such as flyers, pa
Slide 41: Driving behavior change with data
Driving behavior change with data—our technology advantage with patients, physicians and processes VA L U E D E L I V E R E D B E H AV I O R S W E I N F L U E N C E + Digital ordering + Better health outcomes P AT I E N T S + Paperless communication + Higher rates of resupply orders + Virtual setups
Slide 42: In Summary: scale and technology
IN SUMMARY ✚ We are highly efficient at leveraging our scale + technology to get patients crucial therapies they need, when they need it ✚ Our scalable technology platform is leading the HME digital transformation and driving key behavior changes PAT IEN T S better health outcomes We will continue i
Slide 43: Driving Quality of Life for Patients + Value for Payors
Driving Quality of Life for Patients + Value for Payors M A R K E T- L E A D I N G C O M P L I A N C E PAT I E N T - C E N T R I C O R G A N I Z AT I O N T E C H - E N A B L E D PAT I E N T ’ S J O U R N E Y 43
Slide 44: Leading the market with strong compliance
Leading the market with strong compliance Wendy Russalesi Chief Compliance Officer
Slide 45: Compliance agenda
COMPLIANCE AGENDA Why healthcare compliance matters Industry-leading compliance program Priorities going forward
Slide 46: Compliance excellence leads to better patient outcomes
Compliance excellence leads to better patient outcomes PROMOTES + ESTABLISHES + DEVELOPS + ADVANCES GOAL ethics & adherence effective prevention Delivering integrity to laws & internal of fraud, best patient care policies controls waste & while minimizing abuse business risk 46
Slide 47: We are a collaborative partner to the business
C O M P L I A N C E M I S S I O N S TAT E M E N T ✚ Maintaining a robust compliance program, one which fosters a culture of ethics, integrity, open communication and compliance with applicable laws and regulations We are a ✚ Providing collaborative paths forward, collaborative focusing on organizati
Slide 48: Why healthcare compliance matters
COMPLIANCE AGENDA Why healthcare compliance matters Industry-leading compliance program Priorities going forward
Slide 49: Program Evolution – Prepared to support growing business
Program Evolution – Prepared to support growing business 2017 – 2018 2020 2021 – 2022 Established enterprise Incorporated new business Scaled program to support corporate compliance program lines into enterprise corporate largest acquisition to date ✚ One Code of Ethics and compliance program ✚ Inte
Slide 50: We have built a leading compliance program
We have built a leading compliance program C O N S I S T E N T F R AM E W O R K GUIDING PRINCIPLES ✚ Enterprise program spans all Compliance first AdaptHealth subsidiaries culture ✚ Incorporates Office of Inspector General (OIG) Guidance, Department Empowering of Justice (DOJ) evaluation of business
Slide 51: Compliance first culture
Compliance first culture BOD CEO Strong commitment Independent Compliance Committee from BOD and executive leadership to do what is right CHIEF COMPLIANCE OFFICER for our patients and (Enterprise Compliance Team) our business collaborative cross-functional partnerships with SALES O P E R AT I O N S
Slide 52: Empowering business success
Empowering business success Equip operations + sales teams De-risk M&A + support to generate compliant referrals effective integrations ✚ Enterprise compliance education for ✚ Due diligence to identify red flags BOD, employees and contractors (regulatory environment, billing + coding practices, comp
Slide 53: Technology-enabled compliance program
Technology-enabled compliance program Proprietary Full visibility Company Driving better compliance of audit wide workflow engagement audit activity outcomes ✚ Launched May 2016 ✚ Transparency on ✚ Monthly Audit Talk ✚ Billing audit workflow risks + trends sessions to regularly inform the businesses
Slide 54: Rigorously evaluated for effectiveness by independent third-party
Rigorously evaluated for effectiveness – by independent third-party AdaptHealth’s Analysis concluded AdaptHealth’s compliance program is: compliance program is well designed, ✚ Well above normal DME industry standards has been applied earnestly and in ✚ Equal to or above average for companies of sim
Slide 55: Industry-leading compliance program
COMPLIANCE AGENDA Why healthcare compliance matters Industry-leading compliance program Priorities going forward
Slide 56: Compliance excellence optimizes our opportunities + reduces risk
Compliance excellence optimizes our opportunities + reduces risk PRIORITIES GOALS ✚ Monitor OIG work ✚ Drive better plan patient care ✚ Evaluate enterprise ✚ Mitigate emerging risk assessment and fraud and abuse risks monitor disclosures ✚ Support ✚ Monitor for regulatory growth changes and current
Slide 57: Building a Patient-Centric Organization
Building a Patient-Centric Organization Leila Vargas EVP, Sales and Marketing
Slide 58: Future priorities
PAT I E N T- F I R S T C A R E A G E N D A A patient-first organization Future priorities
Slide 59: Our brand promise
OUR BRAND PROMISE AdaptHealth is changing lives by investing in the tools, technology, and people to enable our patients to live the highest quality of life their disease state allows.
Slide 60: Comprehensive services + unparalleled reach
Comprehensive services + unparalleled reach Comprehensive, high-quality services Unparalleled reach + support ✚ Sleep therapy ✚ Breast pumps 36,000 3.9 million home deliveries lives touched ✚ Diabetes ✚ Orthotics & each day last year bracing ✚ Oxygen therapy ✚ Nutrition ✚ Ventilation 759 2,600+ ✚ Ho
Slide 61: Our patient-centric, highly-engaged organization
Our patient-centric, highly-engaged organization 650+ SALES U N PA R A L L E L E D I N D U S T R Y MARKET LEADING POSITIONS* R E P R E S E N TAT I V E S EXPERIENCE Sleep Respiratory 13 HME sales reps #2 572 390 #1 liaisons 138 sales leaders 44 Diabetes 53 % Diabetes NIV 89 sales reps sales leaders 7
Slide 62: Our differentiated approach drives better results
Our differentiated approach drives better results PAT I E N T- F I R S T C AR E ✚ Higher level We give patients the best quality of life through of care for all stages of their disease through a 360 degree patients approach to care. TOOLS + TECHNOLOGY ✚ Valuable We empower our sales teams to stay re
Slide 63: Patient-first care: collaboration & communication
Patient-first care: collaboration & communication We are an A 360-DEGREE APPROACH ✚ Specialized teams working together and dedicated to ensuring consistency of care extension of ✚ Managing the whole patient → enhanced our referral high-quality experience sources into ✚ Building PCP referrals → early
Slide 64: Pilot program outcomes are strong
Pilot program outcomes are strong We are 86 % Stable or improved COPD assessment score* committed to moving from good 84 % Current treatment compliance rate > 4 hours per day* to great. SUBSTANTIAL reduction in COPD readmissions* *Estimates based on Nexus/ Encore reporting from patients assessed 11/
Slide 65: Meet Petri
Meet Petri B® oS adapthealth.com /respiratory-therapy «* adapthealth
Slide 66: Driving change with technology
Driving change with technology AdaptHealth Sales Reps are more informed, responsive, & competitive Benefitting patients, referral sources OTL ARM and AdaptHealth AdaptHealth ✚ Competitive edge Referral Management ✚ Sales order notifications ✚ Real-time information on patients ✚ “On the Way” delivery
Slide 67: ARM: Our proprietary referral management platform
ARM: Our proprietary referral management platform Enabling clear & effective rep/referral source communication THE CHALLENGE ARM IS THE SOLUTION Building a more efficient, scalable sales team to ✚ Communication ✚ Account relationship breakdowns = management accelerate non-acquired loss of trust with
Slide 68: Enhanced trainings drive exceptional engagement
Enhanced trainings drive exceptional engagement, patient care + growth ✚ Committed to hiring top, ✚ Trainings establish a ✚ Low turnover competitive sales Respiratory/Diabetes focus professionals and arming them and provide education ✚ Highly engaged with success on all products, guidelines, and mot
Slide 69: A patient-first organization
PAT I E N T- F I R S T C A R E A G E N D A A patient-first organization Future priorities
Slide 70: Strategic priorities to drive growth
Strategic priorities to drive growth 1 Drive new referrals from physicians and health systems 2 Optimize quality of life for existing patients by expanding services 3 Capture cross-selling opportunities 70
Slide 71: Drive new referrals from physicians and health systems
1 Drive new referrals from physicians and health systems ~70K ~70K ~1K Primary Care Specialists Health Physicians Systems Actively referring patients and prescribing one or Representing future more target therapies to AdaptHealth referral opportunities ✚ Education of referral sources and health syst
Slide 72: Optimize quality of life for existing patients
2 Optimize quality of life for existing patients by expanding services 3.9MM Optimize quality of life Drive outcomes patients on ✚ Deepen relationships service today ✚ Extend care with referral sources and coordinator model simplify process across portfolio ✚ Highly-trained sales reps ✚ Continue to
Slide 73: Capture cross-selling opportunities
3 Capture cross-selling opportunities Utilize our network of Address challenges of ~70K PCPs for cross-sell cross-selling ✚ Diabetes CGM ✚ Cross-sell to referral source ✚ ActivStyle – incontinence ✚ Cross-sell to patient ✚ StorkPump – breast pump division 73
Slide 74: In Summary: AdaptHealth is changing patients' lives
IN SUMMARY AdaptHealth is changing patients’ lives. ✚ We are guided by our commitment to drive the best quality of life for patients so they stay healthier at home ✚ Our patient-first, care-based approach positions AdaptHealth as partner of choice for referral partners and payors ✚ We have significa
Slide 75: Driving revenue, earnings + cash flow
DELIVERING ON OUR MISSION WHILE Driving revenue, earnings + cash flow Shaw Rietkerk COO Central Operations
Slide 76: Technology-driven patient intake + Revenue Cycle Management workflow
We have transitioned to a technology-driven patient intake + Revenue Cycle Management workflow ✚ Deliver high quality patient care Referrals Intake & Delivery Validation & Collections Claim Submission ✚ Build recurring resupply revenue streams ✚ Drive non- acquired growth AdaptHealth Patient Collect
Slide 77: Our technology-driven patient intake
A CLOSER LOOK Our technology-driven patient intake Referrals Intake & Delivery Validation & Collections Claim Submission E-presciption Eligibility workflows Proprietary logistics technology Custom-built rules engine Referral EMR integrations Custom-built rules engine Strategic logistics partners Rea
Slide 78: Driving excellent patient care + improving profitability
A CLOSER LOOK Driving excellent patient care + improving profitability Collections + Patient AdaptHealth Payments Disposition Ecosystem Proprietary workflow Smart logic Resupply management platform Clinical monitoring Enhanced disease state Automated cash receipts (adherence / usage) management acro
Slide 79: In Summary: RCM
IN SUMMARY ✚ RCM drives better outcomes for patients, referral partners and AdaptHealth ✚ AdaptHealth’s seamless ecosystem enables expansion to other services and fuels growth in sleep, respiratory and diabetes
Slide 80: Q&A
HEQ&A
Slide 81: Program Break
Program Break We will resume at ~11:00am ET DRAFT AS OF 09/02/22
Slide 82: Our critical role in patient care at home
Our critical role in patient care at home S L E E P / R E S P I R AT O R Y / H M E DIABETES 82
Slide 83: Changing lives through better patient outcomes
Changing lives through better patient outcomes SLEEP R E S P I R AT O R Y HME Shaw Rietkerk COO Central Operations
Slide 84: Respiratory: An extension of the care team at home
S L E E P / R E S P I R AT O R Y / H M E Sleep: Personalized patient experience with better outcomes Respiratory: An extension of the care team at home Priorities to support growth ambitions
Slide 85: AdaptSleep
W H AT W E D O AdaptSleep Built to provide quality service to patients and ensure maximum PERSONALIZED SLEEP SET-UP COACHING R E S U P P LY R E PA P outcomes ✚ Strong partnerships with ✚ More than 1.2M patients in End-to-end support for manufacturing companies active resupply census patients using C
Slide 86: Sleep at-a-glance
Sleep at-a-glance PRODUCT OFFERINGS M AR K E T S H AR E * $1.0B AdaptHealth NET REVENUE Rentals Q2 ‘22 Annualized 25% #1 ~280K R E N TAL PAT I E N T 75% CENSUS as of June 30, 2022 PAP Resupply Rest of Market ~ 1.2MM S U P P LY PAT I E N T S *Estimated rankings based on 2021 VGM Group/LexisNexis clai
Slide 87: Technology solutions to help sleep patients
HOW WE CHANGE LIVES 1 Technology solutions to help sleep patients Adherence Other Registration Monitoring Support Automation Platform Tools ✚ Reduces time and labor to ✚ Human intervention, key automations ✚ Advanced mask fitter technology register patients into AirView and outreach ensure potential
Slide 88: Our sleep coaching program
HOW WE CHANGE LIVES 2 Our sleep coaching program is designed to help patients achieve therapy success Proprietary Patient ✚ Algorithm IDs “risk” behaviors Adherence Workflow Live call that drive poor adherence ✚ Automated and direct Email outreach based on risk event Patient Patient Patient Outreach
Slide 89: Industry-leading patient adherence drives better outcomes
HOW WE CHANGE LIVES 3 Industry-leading patient adherence drives better outcomes Many payors require adherence 76% ✚ Better quality of life rate of 70%* adherence vs. 72.5% national average ✚ Lower cost of care Strong patient setup ~1300 to 1400 bps ✚ Higher and first 90 days of improvement resupply
Slide 90: Sleep: Personalized patient experience with better outcomes
S L E E P / R E S P I R AT O R Y / H M E Sleep: Personalized patient experience with better outcomes Respiratory: An extension of the care team at home Priorities to support growth ambitions
Slide 91: Adapt Respiratory
W H AT W E D O Adapt Respiratory DELIVERY E D U C AT I O N , CONTINUOUS CARE AND SETUP COACHING CARE C O O R D I N AT I O N GOAL O F PAT I E N T SETTING IN HOME ✚ Extending the reach of ✚ Programs centered around referring physician offices optimizing patient’s quality into the patient’s home of lif
Slide 92: Respiratory at-a-glance
Respiratory at-a-glance $547MM FULL SUITE OF OFFERINGS NET REVENUE ✚ Oxygen Therapy Q2 ‘22 Annualized ✚ Ventilation ✚ Nebulizers & Nebulized ~290K PAT I E N T S O N O 2 Medications M AR K E T AdaptHealth AN D V E N T T H E R AP Y S H AR E * CENSUS as of June 30, 2022 #2 Rest of Market *Estimated ran
Slide 93: AdaptHealth difference – Nexus + Breathe a Little Easier programs
AdaptHealth difference – Nexus + Breathe a Little Easier programs 2 Intervention ✚ Commitment to compliance to reduce risk ✚ Intervention focus by Respiratory Therapists, 1 optimizing 3 Nurses, Pharmacists, Pharmacy Technicians, and Compliance patient quality Outcomes Sleep Technicians of life ✚ Out
Slide 94: Priorities to support growth ambitions
S L E E P / R E S P I R AT O R Y / H M E Sleep: Personalized patient experience with better outcomes Respiratory: An extension of the care team at home Priorities to support growth ambitions
Slide 95: Priorities to drive non-acquired growth
Priorities to drive non-acquired growth Continue to grow 1 PAP Setups Accelerate resupply to 2 drive recurring business Capitalize on expanded 3 referral base to accelerate respiratory growth Utilize clinical expertise 4 to fuel vent growth 95
Slide 96: Optimize lifetime value of PAP rental business
S T R AT E G I C P R I O R I T Y 1 G R O W PA P S E T U P S Optimize lifetime value of PAP rental business LEVERS TO DRIVE GROWTH Lifetime X X = PAP ✚ Growing PAP new starts $ Months rental (strategic payor revenue* relationships, expanded PAP Equipment Rental cap vendor relationships, group rental
Slide 97: Optimize lifetime value of PAP supply business
S T R AT E G I C P R I O R I T Y 2 A C C E L E R AT E R E S U P P LY Optimize lifetime value of PAP supply business Lifetime LEVERS TO DRIVE GROWTH PAP ✚ Growing PAP new starts X X X Years = resupply ✚ Leverage referral sources revenue (Grow active census via PAP Orders per Value per Patient “resupp
Slide 98: Maximizing market share opportunities in respiratory care
S T R AT E G I C P R I O R I T Y 3 A C C E L E R AT E R E S P I R AT O R Y G R O W T H Maximizing market share opportunities in respiratory care LEVERS TO DRIVE GROWTH Lifetime X X Months = O2 rental ✚ Grow new health system $ relationships/referral base created revenue during COVID-19 Oxygen Equipm
Slide 99: Maximizing market share opportunities in respiratory care: vent growth
S T R AT E G I C P R I O R I T Y 4 FUEL VENT GROWTH Maximizing market share opportunities in respiratory care LEVERS TO DRIVE GROWTH Lifetime X X Months = vent rental ✚ National clinical sales $ team – centralized and revenue dedicated team Ventilator Equipment Patient rental rental rate LOS ✚ Ident
Slide 100: In Summary: sleep and respiratory
IN SUMMARY ✚ Attractive benefits from market tailwinds in sleep and respiratory ✚ Patient-first, technology-enabled approach drives product leadership and better patient outcomes ✚ Well-positioned to capitalize on large opportunities in sleep and respiratory and drive strong non-acquired growth
Slide 101: Driving Patient Engagement in Diabetes
Driving Patient Engagement in Diabetes L E V E R A G I N G T E C H N O L O G Y, S A L E S + P R O C E S S E S Rodney Carson President & COO Diabetes
Slide 102: Diabetes agenda
DIABETES AGENDA Diabetes is a prevalent and costly disease on the rise Scaled & ready to drive non-acquired growth Well positioned to drive growth & benefit from operational efficiencies
Slide 103: Diabetes is an increasingly common chronic disease
Diabetes is an increasingly common chronic disease – most costly in the U.S. Americans have diabetes, 37MM with diagnosed cases up nearly 3x since 2000* 10-12% of healthcare dollars are 14% spent treating diabetes or a disease complication* Long term growth projections for US diabetes device market
Slide 104: Diabetes exacerbates many other chronic conditions
Diabetes exacerbates many other chronic conditions... putting Disease conditions with UROLOGY OSTOMY OXYGEN strain on high degrees of co-morbidity our health with diabetes system SLEEP WOUND INCONTINENCE BREAST APNEA CARE CARE PUMPS 104
Slide 105: Double Digit CAGR Projected for CGM and Insulin Pump Market
Double Digit CAGR Projected for CGM and Insulin Pump Market through 2022 ($ billions) (1) (1) KEY DRIVERS U . S . D I AB E T E S D E V I C E M AR K E T ( $ B I L L I O N S ) ✚ Aging population Continuous Glucose $3.4 Insulin Pump ✚ Increased prevalence of Monitoring 18% Market obesity in U.S. Market
Slide 106: Diabetes is a prevalent and costly disease on the rise
DIABETES AGENDA Diabetes is a prevalent and costly disease on the rise Scaled & ready to drive non-acquired growth Well positioned to drive growth & benefit from operational efficiencies
Slide 107: Diabetes at-a-glance
Diabetes at-a-glance $665MM PRODUCT OFFERINGS REVENUE MIX Pharmacy Government S AL E S Q2 ‘22 Annualized Continuous 6% Glucose Monitors 24% 49% (CGM) ~250K 45% PAT I E N T S O N C E N S U S serviced in LTM June 2022 Other insulin pumps, glucose meters, 76% test strips, syringes, and 93 other supplie
Slide 108: Positioned to win with 100+ diabetes dedicated patient advocates
Positioned to win with 100+ diabetes dedicated patient advocates + E-prescribe first-mover advantage Product Depth & Industry-Leading Broad Insurance Coverage & Manufacturer Relationships Referral Support + Technology Benefit Flexibility ✚ Strong relationships with ✚ 100+ diabetes-dedicated ✚ 100s o
Slide 109: Meet Chris
«* adapthealth Meet Chris adapthealth.com /diabetes 10! 9
Slide 110: Diabetes agenda
DIABETES AGENDA Diabetes is a prevalent and costly disease on the rise Scaled & ready to drive non-acquired growth Well positioned to drive growth & benefit from operational efficiencies
Slide 111: Priorities to drive growth
Priorities to drive growth 1 Drive non-acquired growth + operational efficiency via process standardization + technology deployment 2 Pursue bolt-on M&A Leverage Diabetes as gateway for 3 outpatient monitoring 111
Slide 112: Capture untapped non-acquired growth
S T R AT E G I C P R I O R I T Y 1 N O N - A C Q U I R E D G R O W T H + O P E R AT I O N A L E F F I C I E N C I E S Capture untapped non-acquired growth K E Y I N I T I AT I V E S Drive Enhance Customer Drive Operational Sales Engagement Efficiency ✚ Cross-marketing ✚ Leverage technology to ✚ Stan
Slide 113: Optimize lifetime value per patient
S T R AT E G I C P R I O R I T Y 1 N O N - A C Q U I R E D G R O W T H + O P E R AT I O N A L E F F I C I E N C I E S Optimize lifetime value per patient to maximize non-acquired growth Lifetime LEVERS TO DRIVE GROWTH = Diabetes X X X Months ✚ Expand referral base supply revenue ✚ Deeper penetration
Slide 114: Deliver upside through bolt-on M&A
S T R AT E G I C P R I O R I T Y 2 M&A Deliver upside through bolt-on M&A Track record of Considerations for How we will M&A success potential targets measure success ✚ Completed 7 diabetes- ✚ Payor mix ✚ Year 1 financial specific transactions ✚ Complimentary contract performance / Year 1 starting m
Slide 115: In Summary: diabetes
IN SUMMARY ✚ Large and fast-growing business in an expanding market ✚ Sizable team of patient advocates and excellent manufacturer relationships protect and expand relative market share position ✚ Increased process standardization and the implementation of technological solutions create operational
Slide 116: Building AdaptHealth 2.0
Building AdaptHealth 2.0 PIONEERING THE NEXT ERA OF C O N N E C T E D I N - H O M E H E A LT H C A R E Josh Parnes President
Slide 117: Leveraging pipes into the home
A D A P T H E A LT H 2 . 0 S E C T I O N A G E N D A Leveraging pipes into the home Priorities to unlock our full potential 117
Slide 118: Healthcare marketplace moving aggressively to the home
Healthcare marketplace continues to move aggressively to the home environment ~$255B worth of care services currently being delivered in clinics, facilities + physician offices are predicted to shift to the home by 2025* *Source: McKinsey 118
Slide 119: We will build upon our strong foundation
We will build upon our strong foundation Scale + Technology: National footprint with Patient-Centric local presence Technology Platform critical enablers for better home care ✚ 3.9 million patients ✚ 759 locations ✚ Servicing 47 states ✚ 36,000 deliveries every day 119
Slide 120: Our strategic ambition: pioneer the shift to connected care at home
Our strategic ambition: Pioneer the shift to connected care at home Build a better patient + partner experience by leveraging geographic scope, payor scale and technology capabilities. Get + keep patients home by leveraging 360-degree patient care model. Lower the total cost of care through better c
Slide 121: Priorities to unlock our full potential
A D A P T H E A LT H 2 . 0 S E C T I O N A G E N D A Leveraging pipes into the home Priorities to unlock our full potential 121
Slide 122: Delivering AdaptHealth 2.0 strategic priorities
Delivering AdaptHealth 2.0 by executing on what we have already built S T R AT E G I C P R I O R I T I E S 1. Connected Care Still in early 2. Chronic Disease Management innings but excited about the opportunities 3. Payor Technology Connection ahead 122
Slide 123: Leveraging connected devices in the home
S T R AT E G I C P R I O R I T Y 1 CONNECTED CARE Leveraging connected devices in the home to drive targeted patient interventions O U R U N I Q U E A D VA N TA G E OUR OPPORTUNITY Database and domain ✚ Better care management expertise created by building on foundation in place to drive ✚ long histo
Slide 124: Adding clinical component to chronic disease management
S T R AT E G I C P R I O R I T Y 2 CHRONIC DISEASE MANAGEMENT Adding clinical component to chronic disease management OSA COPD DIABETES CHF Incidence 54MM with AHI ≥ 15.7MM 37MM 6.2MM Addressing Data (US) condition-specific offerings for ~2MM Therapies CPAP machine + Oxygen, Ventilation, CGM, Beds,
Slide 125: Solve for payor pain points via technology connections
S T R AT E G I C P R I O R I T Y 3 P AY O R T E C H N O L O G Y C O N N E C T I O N Solve for payor pain points via technology connections Our established + expanding technology solutions help. P AY O R P A I N P O I N T S EXISTING OFFERINGS FUTURE CONNECTED CARE ✚ Claims administration ✚ E-prescrib
Slide 126: Partner Order Tracking
S T R AT E G I C P R I O R I T Y 3 P AY O R T E C H N O L O G Y C O N N E C T I O N Partner Order Tracking ✚ Developed using strategic low-code platform ✚ Order lifecycle visibility to partners (e.g. health systems and commercial insurance companies) ✚ Auditable two-way interaction/messaging platfor
Slide 127: Executing roadmap to lead connected in-home healthcare
IN SUMMARY Executing roadmap to be a leader in the shift to connected in-home healthcare E A R LY I N N I N G S 2022 PRE-2021 Established Scale + Optimizing Building Capabilities Our Capabilities AdaptHealth 2.0 ✚ Built geographic density ✚ Further integrating teams, ✚ Integrated, condition tools +
Slide 128: Positioning our Company to Maximize Shareholder Value
Positioning our Company to Maximize Shareholder Value FINANCIAL OVERVIEW Jason Clemens Chief Financial Officer
Slide 129: Financial overview agenda
FINANCIAL OVERVIEW AGENDA Positioned for profitable growth Cash flow flywheel supports capital allocation priorities 2025 Goals
Slide 130: Evolve our financial profile: Build Scale
A C L E A R F I N A N C I A L S T R AT E G Y Evolve our financial profile Positioning AdaptHealth to scale to $4B Revenue, Build $1B Adjusted Scale EBITDA*, $300MM FCF* 2020 & Beyond ✚ Acquire + integrate ✚ Build geographic density ✚ Diversified product catalogue *Non-GAAP measure. Refer to Appendix
Slide 131: Executing M&A strategy to build scale + fuel topline growth
REVENUE Executing M&A strategy to build scale + fuel topline growth KEY DRIVERS THEN (2019) NOW (2022) REVENUE ($ in billions) Geographic REGIONAL NATIONAL Footprint PROVIDER PROVIDER $2.9 ~6x $2.4 Product PARTIAL COMPREHENSIVE Portfolio to Sleep, Respiratory, HME Across the Product Catalog $1.1 $0.
Slide 132: Evolve our financial profile: Optimize and Leverage
A C L E A R F I N A N C I A L S T R AT E G Y Evolve our financial profile Positioning AdaptHealth to scale Optimize to $4B Revenue, Build Leverage $1B Adjusted Scale EBITDA*, $300MM FCF* 2020 2021 & Beyond ✚ Acquire + integrate ✚ Lower capital intensity ✚ Build geographic ✚ Integrate enabling densit
Slide 133: Improving our operating leverage to expand margins
P R O F I TA B I L I T Y Improving our operating leverage to expand margins KEY DRIVERS THEN (2019) NOW (2022) REVENUE PER EMPLOYEE* ($ in 000s) $265 $224 $229 Technology FRAGMENTED INTEGRATED $204 No ERP, No CRM, No HCM ERP, CRM, HCM, RCM 2019 2020 2021 2022E** Processes EARLY INNINGS OPTIMIZING E-
Slide 134: Evolve our financial profile: Accelerate Value
A C L E A R F I N A N C I A L S T R AT E G Y Evolve our financial profile Positioning Accelerate AdaptHealth to scale Value Optimize to $4B Revenue, Build Leverage $1B Adjusted Scale EBITDA*, $300MM FCF* 2020 2021 2022 & beyond & Beyond ✚ Acquire + integrate ✚ Lower capital intensity ✚ Sustainable t
Slide 135: Positioning to accelerate free cash flow flywheel
C A S H G E N E R AT I O N Positioning to accelerate free cash flow flywheel KEY DRIVERS THEN (2019) NOW (2022) FREE CASH FLOW ($ in millions) Resupply 600K PATIENTS 1.4MM PATIENTS Census DSO ~48 DAYS ~45 DAYS DPO >100 DAYS ~50 DAYS 1H22 CARES* AP** Adjusted 1H22 *Recoupment of advanced cash payment
Slide 136: Financial overview agenda
FINANCIAL OVERVIEW AGENDA Repositioned for profitable growth Cash flow flywheel supports capital allocation priorities 2025 Goals
Slide 137: Durable operating model drives cash flywheel and fuels growth
Durable operating model drives cash flywheel and fuels growth 1 Steady and sustainable 2 Disciplined M&A cash generation adding scale and density at attractive multiples REPOSITIONED BUSINESS scale, operating leverage, resupply Return Capital to census engine Technology investments 5 3 that turn our
Slide 138: Balance sheet provides flexibility to execute our strategy
Balance sheet provides flexibility to execute our strategy LIQUIDITY DEBT SERVICE DEBT STRUCTURE Net Debt / LTM Adjusted EBITDA* Debt maturities, as of Q2 FY22 Undrawn FY26 $775M revolver 3.4x FY27 $0 capacity $433MM FY28 $350M After $17MM letters of credit FY29 $500M 3.2x FY30 $600M Cash & $119MM 7
Slide 139: Financial overview agenda
FINANCIAL OVERVIEW AGENDA Repositioned for profitable growth Cash flow flywheel supports capital allocation priorities 2025 Goals
Slide 140: Positioning for the next phase of growth: Revenue
Positioning for the next phase of growth FUTURE KEY DRIVERS FY2025 Goals ✚ PAP equipment Revenue $4B normalization ✚ Non-acquired growth ✚ M&A * Mid-point of 2022 revenue guidance range of $2.84-3.84B 140
Slide 141: Positioning for the next phase of growth: Adjusted EBITDA
Positioning for the next phase of growth FUTURE KEY DRIVERS FY2025 Goals ✚ PAP equipment Revenue $4B normalization Adjusted ✚ Non-acquired EBITDA* $1B growth ✚ Operational efficiencies ✚ M&A *Non-GAAP measure. Refer to Appendix for GAAP to Non-GAAP reconciliations 141
Slide 142: Positioning for the next phase of growth: Free Cash Flow
Positioning for the next phase of growth FUTURE KEY DRIVERS FY2025 Goals ✚ Continuous Revenue $4B improvement to DSO/DPO Adjusted EBITDA* $1B ✚ Lower Capex requirements Free Cash $300MM ✚ ERP improvements Flow* to Working Capital *Non-GAAP measure. Refer to Appendix for GAAP to Non-GAAP reconciliati
Slide 143: In Summary: financial overview
IN SUMMARY ✚ We have evolved the financial profile of the business—more scale, better operating leverage + cash flow momentum ✚ We are leveraging cash generation to drive capital allocation priorities—focus on profitable growth and shareholder value ✚ Line of site to FY2025 goals—$4B revenue, $1B Ad
Slide 144: Q&A
EQ&A
Slide 145: In Summary: tech-enabled, patient-first integrated care model
IN SUMMARY Improving patient lives + lowering healthcare costs via a tech-enabled, patient-first integrated care model 1 2 3 A transformed Capitalizing on Executing business value embedded in AdaptHealth 2.0 more scale, efficiencies + business today innovative pioneer value creation potential produc
Slide 146: Thank you
Thank you DRAFT AS OF 09/02/22
Slide 147: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation discusses AdaptHealth’s EBITDA and Adjusted EBITDA for prior periods and projected amounts for future periods. AdaptHealth defines EBITDA as net income (loss) attributable to AdaptHealth Corp., plus net income (loss) attributable to noncontrolling intere