Nobilis Health Mergers and Acquisitions Specialist Kolin Ozonian discussed the company’s business model with The Life Sciences Report and where the company is headed in the future.
Here are six key points from the report:
1. Although Nobilis is listed on the Toronto Stock Exchange, it’s based in Houston and serves the Texas market. The United States is a better fit for the company’s healthcare facilities, which cater to patients undergoing elective outpatient surgeries. The Canadian healthcare model makes it harder for patients to access these procedures, but in the United States Nobilis can work within the commercial healthcare system.
2. The workflow in smaller facilities and the outpatient setting is more efficient than large hospitals, so the company can contribute to lowering the overall cost of care for patients.
3. Nobilis is looking at potential joint ventures in the future with large hospitals looking to add satellite outpatient locations in more rural areas. The outpatient-focused Nobilis can help hospitals run these facilities efficiently. The company is looking to offer specific branded procedures in these facilities, such as spine surgery, migraine treatment and women’s health.
4. Nobilis has a unique marketing strategy committed to a 20 percent organic growth rate year-over-year. The company grows through new acquisitions as well as existing facilities and has continually seen revenue growth. “The company’s growth rate will only continue to improve as we become a more sophisticated marketing technology company,” Mr. Ozonian in the report.
5. Mr. Ozonian expects the company to achieve organic growth on revenue and adjusted EBITDA at 20 percent and 21 percent this year over 2015. He expects acquisitions to account for around $45 million in additional revenue and $14 million in additional adjusted EBITDA.
6. Bundled payments are an opportunity for the company going forward with enhanced payer relationships and attracting physician providers.