Private Health Management

Private Health Management

Tech-enabled healthcare navigation service that improves healthcare quality and helps contain costs

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Security Type
Preferred Stock
Categories
Other
Min Investment
$1,000
Location
Los Angeles, CA
Offering Date
August 08, 2019
Expected Close Date
November 06, 2019
Target Raise
$1.00M-$4.00M
Deal Notes

Round type: Series C

Security Type: Preferred Equity

Share price: US $1.31927

Option pool: 15.0%

Liquidation preference: 1.0x

Closing conditions: While Private Health Management has set an overall target minimum of US $2,000,000 for the round, Private Health Management must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Private Health Management's Form C.

Regulation CF cap: While Private Health Management is offering up to US $6,000,000 worth of securities in its Series C, only up to US $107,000 of that amount may be raised through Regulation CF.

Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

Valuation
$12,500,000

Company Description

Tech-enabled healthcare navigation service that improves healthcare quality and helps contain costsThe U.S. healthcare industry is marked by unnecessarily high costs, variable quality, and growing complexities. We spend $3.5 trillion per year, or $10,000 per person, 1/3 of which is wasted on unnecessary tests and treatments.Private Health provides comprehensive, tech-enabled healthcare navigation, patient education, and support services for companies and individuals globally. Our proprietary process has 4 steps: Immersion: collect and review relevant information, including medical records, tests, imaging, etc.Diagnosis: determine or confirm accuracy and completeness Treatment Planning: establish an individualized treatment plan, consulting top expertsTreatment Implementation: ensure proper implementation, adjusting as needed Here are a few examples:A client was misdiagnosed with metastatic melanoma and told to “get her affairs in order”. We ordered diagnostic tests that determined the proper diagnosis and enrolled her in a clinical trial that provided 3 promising experimental new drugs at no cost, leading to a symptom-free, no evidence of disease, result. A client suffered from an undiagnosed condition for 10 years. We determined the correct diagnosis in weeks and implemented a curative treatment. A client had debilitating back pain. We avoided a painful, expensive surgery by determining the exact pain cause and treating it with intense, targeted physical therapy.Our resources include:Proprietary database of more than 15,000 vetted physicians in more than 350 specialties Proprietary natural language, AI-powered medical literature search engineMedical research library of more than 1,500 reportsHighly trained clinicians who lead our casesUnique research department staffed by PhDs, MDs, and PharmDsLogistics coordinatorsMedical record collectorsGlobal emergency care access

Key Deal Facts

Generated $6.5M+ in revenue in 2018 with 37.9% gross margins and 10% EBITDA margins. Achieved double-digit revenue growth, expanded gross margins, and increased EBITDA in every year since 2015 (unaudited).
Provided more than 57,000 services to clients, including the management of serious and complicated medical issues such as cancers, cardiovascular, orthopedic, neurologic, autoimmune, and many other disease categories.
Currently serving 13 corporate clients, covering more than 1,777 employees, and their families. We have grown our corporate clients from 7 to 13 since 2013, with an average annual renewal rate of 97% for that period. These clients include a publicly traded investment bank, private equity firms, hedge funds, investment management firms, and more.
Resources include a database of more than 15,000 evaluated top physicians in more than 350 specialties and sub-specialties, a proprietary natural language, AI-powered medical literature search engine, and a medical research library of more than 1,500 detailed, research-backed reports.
Experienced senior management team has more than 100 years of healthcare leadership and entrepreneurial experience.

Use of Proceeds

Stock Repurchase, Sales & Marketing, Data & Technology, Working Capital

Management Team / Advisory Board Bios

Leslie Michelson
Founder, Chairman of the Board, and CEO
Leslie Michelson has more than 30 years of experience as a founder, CEO, investor, and advisor for a portfolio of entrepreneurial health care companies. He is the author of the New York Times best-seller The Patient’s Playbook. He was the CEO of the Prostate Cancer Foundation, co-founded and served as CEO of Acurian, Value Health Sciences, and Protocare. He has served on the boards of 20 companies, including 14 publicly traded companies.

Gregg Britt
Founder, President, Member, Board of Directors
Gregg Britt has more than 20 years of leadership experience in the health care, health research, and drug development industries. He founded Innovis, LLC, was the SVP of Biopharmaceutical Research and Development at the Prostate Cancer Foundation, the COO of Protocare Inc., and the CEO of AIDS Research Alliance of America.

Deal Notes

Round type: Series C

Security Type: Preferred Equity

Share price: US $1.31927

Option pool: 15.0%

Liquidation preference: 1.0x

Closing conditions: While Private Health Management has set an overall target minimum of US $2,000,000 for the round, Private Health Management must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Private Health Management's Form C.

Regulation CF cap: While Private Health Management is offering up to US $6,000,000 worth of securities in its Series C, only up to US $107,000 of that amount may be raised through Regulation CF.

Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

Amount Raised : $210,423
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Security Description

Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

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