2. Investment Brief
September 2015
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OVERVIEW
Hospitalization for patients is stressful, and discharges can be even more so. Patients which have complex
health histories, and at times, chronic conditions, can be left to fend for themselves in the recovery
process, and are likely to end back up in the emergency room.
In 2010 one in eight Medicare patients were readmitted to the hospital within 30 days of being released
after surgery, while patients in the hospital for reasons other than surgery returned at a rate of one in six
1
.
The cost burden of readmission on the healthcare system is significant. Hospitals spent $41.3 billion
between January and November 2011 to treat patients readmitted within 30 days of discharge
2
. Research
has shown that hospitals can engage in several activities to reduce the rate of readmission.
As a consequence, the U.S. healthcare system is in the midst of a massive transformation to improve
patient care and reduce costs.
Also in 2010, the Affordable Care Act required HHS (Department of Health and Human Services) to
establish a hospital readmission reduction program (HRRP). Effective October 1, 2012, the program was
designed to provide incentives for hospitals to implement strategies to reduce the number of costly and
unnecessary hospital readmissions
3
. The program was a catalyst to creating the Transitional Care market.
The challenge for traditional inpatient healthcare facilities is that they are not built for transitional care.
The opportunity that our Company was formed to address is to offer a third party solution designed to
give the newly discharged patient and their healthcare team continuity of medical and post discharge
care, further reducing adverse events, unnecessary return visits. We take patients from any inpatient
facility, including hospitals, skilled nursing facilities and rehabilitation centers.
Global Transitional Healthcare (GTC) is the nation’s first Medicare-approved, third-party transitional care
provider. Our mission is to enhance the care continuum and provide personalized clinical oversight for
each individual patient who will recover more effectively in a home setting.
Our transitional care platform helps avoid complications and readmission to the hospital by helping to
manage all aspects of care from inpatient stay to home for 30 days from date of discharge. Through a
1
The Revolving Door: A Report on U.S. Hospital Readmissions, Robert Wood Johnson Foundation, 2013.
2
Conditions With the Largest Number of Adult Hospital Readmissions by Payer, 2011. Approximately 1.8 million
readmissions cost the Medicare program $24 billion; 600,000 privately insured patient readmissions totaled $8.1
billion; and 700,000 Medicaid patient readmissions cost hospitals $7.6 billion. 200,000 patients readmitted cost
hospitals $1.5 billion.
3
CMS (Centers for Medicare and Medicaid Services) defines a readmission in this context as “an admission to a
subsection(d) hospital within 30 days of a discharge from the same or another subsection(d) hospital.” Subsection(d)
hospitals, per the Social Security Act, include short-term inpatient acute care hospitals excluding critical access,
psychiatric, rehabilitation, long-term care, children's, and cancer hospitals.
3. Investment Brief
September 2015
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transitional care provider team, patients and their families will have access to a healthcare provider that is
familiar to them and their case, 24 hours a day, 7 days a week.
Our strategy is to be a partner to inpatient healthcare centers and facilities, where physicians and
operators refer moderate-to high-risk discharged patients to our transitional care platform to assist
patient post-discharge needs and coordinate at-home care for 30-days after discharge. We are currently
partnering with more than 15 medical groups, physicians and inpatient facilities in Southern California.
How GTC Works
Each patient is assigned a
nurse practitioner and a
registered nurse, who will
make contact with the
patient in the hospital. Within
a day or two, the nurse
practitioner conducts and at-
home assessment soon after
discharge. For the next
month, the patient has 24/7
access to the GTC care team.
This includes both phone and face-to-face visits between the patient and their nurse. In addition to
clinical oversight, we provide an extensive level of care, coordination, medication reconciliation and
disease management education. Our nurses help patients manage their medications and at-home care
routines, coordinate follow-up visits with physicians and educate the patients’ family members about
continued self-care.
We develop and customize a transitional care plan based on the needs of the patient, whether that means
home visits every few days or just follow-up phone calls.
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Technology
We have developed a cloud-based, proprietary and HIPPA compliant platform
4
to coordinate, manage
and track patient care transitions from hospitals to post-acute care settings. Our professionals are able to
communicate with patients and providers based on the users’ preferred method of communication.
Investment
We have raised approximately $115,000 in seed capital to date. Since inception in January 2014, we have
acquired our National Provider Identification (NPI) number and approval to directly bill Medicare. In
March, 2015 we were granted the ability to directly bill Medicare for Transitional Care services, becoming
the first and only exclusively post-acute transitional care provider in the country to have received an NPI
and approval for Medicare direct bill.
In August, 2015 we entered into partnership with MD Anderson cancer center to design and implement a
clinical outcomes study on the effect of in-home symptom management and transition after IV Chemo.
MD Anderson is one of the world’s largest and most respected centers devoted exclusively to cancer
patient care, research, education and prevention. Last year, it provided care for more than 127,000
patients.
We are raising up to $2.5 million to support our commercialization efforts and respond to demand in
initial key markets including California, Texas and Florida. We expect that the proceeds of this offering will
be sufficient to support our operating activities and growth through the first half of 2016 and plan, based
on achieving key milestones and continued demand for our transitional healthcare solutions, to raise
additional growth capital in the second half of 2016 to support further expansion. We are raising capital in
the current round in the form of private equity through a Reg D 506(c) private placement memorandum.
4
The application can be connected to hospital’s Electronic Medical Records system with the ability to
communicate with patient data.
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Key Offering Data Max
Corporate Structure
Membership Units Out 5,025,000
Warrants/Options Out -
Convertible Debt $ -
Membership Units issued on Debt Conv. -
Membership Units Out Fully Diluted 5,025,000
Offering $ 2,500,000
Offering Price/Membership Unit $ 1.00
Offered Membership Units 2,500,000
Post Offering Membership Units Out (FD) 7,525,000
Post Offering Valuation $ 7,525,000
Pre-Offering Post-Offering
Pro Forma Capitalization Shares Out % of Out Shares Out % of Out
Founders 4,305,000 85.7% 4,305,000 57.2%
Other Shareholders 720,000 14.3% 720,000 9.6%
New Shareholders (Current Offering) - 0.0% 2,500,000 33.2%
Total 5,025,000 100% 7,525,000 100%
What is Transitional Care?
Transitional care is meant to help vulnerable patients recover at home after spending time in the hospital
or another patient medical setting. One of the primary goals is to prevent unnecessary trips to the
hospital. It is different in scope from home health or hospice care, which is intended to treat an illness or
injury and assist patients with daily living activities.
It works in tandem with home health care, but it is limited to a strict 30-day post-discharge period and
focuses on clinical oversight and coordination of care rather than daily living assistance – tasks like
arranging the follow-up appointments and checking the recovery process.
Market Landscape and Opportunity
In 2012, the Centers for Medical Services (CMS) started the Hospital Readmission Reduction Program
(HRRP) with the goal to improve healthcare. On October 1, 2014, the final payment and policy changes for
hospital readmissions for CMS went live, creating financial pressure on hospitals across the United States
to mitigate readmissions to avoid increased penalties.
CMS applies penalties to the base diagnosis related group (DRG) payment. Hospitals have to track the
following 30-day readmission rates: heart attack (AMI), heart failure, pneumonia, COPD, THA/TKA (knee or
hip arthroplasty).
Use of Proceeds Max
Sales & Marketing/Business Dev. $ 1,000,000
Operations 850,000
Software & IT 350,000
Other 300,000
Gross Proceeds 2,500,000
Offering Expenses $ 225,000
Net Proceeds $ 2,275,000
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In January, the Health and Human Services announced goals of tying 85% of all traditional Medicare
payments to quality or value by 2016 and 90% by 2018 through programs such as Hospital Value Based
Purchasing and the Hospital Readmissions Reduction Programs.
Table 1. The Hospital Readmission Reduction Program (HRRP): 3-year phase in
Year penalty applied
(Penalties: percentage reductions
in payments for all Medicare
admissions in the year)
FY 2013 FY 2014 FY 2015
Performance (measurement)
period
Heart attack
Heart failure
Pneumonia
Heart attack
Heart failure
Pneumonia
Heart attack
Heart failure
Pneumonia
COPD
Hip or knee replacement
Maximum rate of penalty 1% 2% 3%
Average hospital payment
adjustment (among penalized
and non-penalized hospitals)
-0.27% -0.25% -0.49%
Average hospital penalty
(among hospitals only)
-0.42% -0.38% -0.63%
Percent of hospitals penalized 64% 66% 78%
CMS estimate of total penalties $290 million $227 million $428 million
NOTES: Penalties are applied to each hospital in the fiscal year shown, based on its performance during a preceding 3-year
measurement period, also shown. Analysis excludes hospitals not subject to HRRP, such as Maryland hospitals and other hospitals
not paid under the Medicare Hospital Inpatient Prospective Payment System, such as psychiatric hospitals. COPD: Chronic
obstructive pulmonary disease. FY: fiscal year. SOURCE: Kaiser Family Foundation analysis of CMS Final Rules and Impact files for the
Hospital Impatient Prospective Payment System.
Recent studies have shown that health care facility managers could expect to save $2,140 for the average
30-day readmission avoided. For heart attack, heart failure and pneumonia patients, expected readmission
cost estimates were $3,342, $2,488 and $2,278, respectively
5
. By contrast, the average Medicare
reimbursement for 30 days of transitional care is $230.
The savings potential of GTC’s transitional care platform to Medicare is more significant, where it pays for
admission costs (average $9,600) where the presence of a transitional care team can often prevent a
situation where a discharged patient might be readmitted for a non-DRG condition such as renal failure.
In such a case, at a $230 transitional care reimbursement, Medicare savings on readmission are 97%.
Competitive Landscape
There are many health care providers that offer some level of transitional care services and other types of
health care. Current market-based approaches include:
• Partnering with community physician and physician
groups
• Partnering with local hospitals
5
The cost of hospital readmissions: evidence from the VA, Health Care Management Science. January 10, 2015.
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September 2015
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• Having nurses responsible for medication
reconciliation
• Arranging for follow-up visits before discharge
• Sending discharge summaries to primary care
physician
• Assigning staff to follow-up on test results after
discharge
However, conventional healthcare facilities are not built for supporting discharged patients. They do not
have the infrastructure and processes in place, and the Medicare reimbursement rates available do not
justify the investment in time and resources they would need to make to become proficient in a
transitional care model.
In the current environment, when their patients walk out the door, they have no more control over the
patient, yet they are penalized for what is supposed to happen when the outpatient doesn’t end up doing,
which causes the readmission. They are penalized for readmissions of patients under DRG categories
which, too frequently occur due to patient behavior and lack of a functional transitional care program.
Global Transitional Care is the first Medicare-approved company to focus exclusively on this type of
service. Unlike conventional healthcare facilities, Global Transitional Care is structured to perform
Transitional Care services, and to do so profitability under the existing Medicare reimbursement scheme
6
.
We serve as an extension of the healthcare facility, giving it a level of control outside of the hospital, and
at no cost to the hospital (see “Performance Share” below).
State
Medicare
Population
# of Inpatient
Stay
% Using TC
Services
Avg.
Reimbursement ($)
% Using GTC
Services
40%
7
$ 500.00
8
30%
9
CA 5,000,198 1,010,040 404,016 $ 202,007,999 $ 60,602,400
TX 3,187,332 643,841 257,536 $ 128,768,213 $ 38,630,464
FL 3,527,830 712,622 285,049 $ 142,524,332 $ 42,757,300
11,715,360 2,366,503 946,601 $ 473,300,544 $ 141,990,163
Based on our plan to rollout the GTC platform to California, Texas and Florida, initially, we estimate that
the initial addressable market opportunity for our services is approximately $142 million.
6
GTC is not limited to Medicare reimbursement patients only and intends to market its services to direct payers
across traditional healthcare, in addition to services such as plastic surgery. Regardless of the underlying
procedure, the GTC platform value proposition is applicable.
7
4 out of 10 discharges receive transitional care services.
8
We believe this to be a conservative estimate. We expect at least 50% of patients to be designated a high-
complex which frequently requires additional face-to-face visits. Each face-to-face visit results in $278
reimbursement.
9
Global Transitional Care is a first-mover. We expect new entrants to the market, which will likely reduce the
percentage of addressable patients. However, we anticipate that the market will continue to grow in number, and
that Medicare will introduce additional DRG reimbursement codes which will offset, in party, downward pressure
in the percentage of patients using our services.
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State
Medicare
Population
# of Inpatient
Stay
% Using TC
Services
Avg.
Reimbursement ($)
% Using GTC
Services
All 49,435,610 9,985,993 3,994,397 $ 1,997,198,644 $ 599,159,593
GTC Business Model
Key to our success in establishing and maintaining our leadership in transitional care is our ability to build
trusted relationships with physicians as well as strategic healthcare channels including hospitals, skilled
nursing facilities, rehabilitation facilities and in demonstrating our value proposition:
• Best-in-class transitional care platform;
• Designed to reduce readmission rates and facility costs;
• Low-cost infrastructure capable of scaling to meet demand.
What is unique to our model is that there is not a specific “sale” made to inpatient facilities or patients in
any conventional sense.
We assign a business development officer to establish a relationship with inpatient facilities, physicians
and key influencers throughout the healthcare value chain to understand the important of follow-up care
in home to discharged patients, and crucially, the value proposition of transitional care. This is a highly
specialized process that requires an “early education” approach.
After we receive “buy-in” from the inpatient facility, we assign a “provider relations” specialist, which
continues with the education, servicing and account maintenance. We assign a dedicated Transitional
Care Team comprised of a specially trained nurse practitioner and registered nurse to the inpatient facility.
When patients falling under a DRG code are scheduled for discharge, the inpatient facility notifies our
team (using our automated, cloud-based application), which initiates our transitional care process.
Our “sales”, or more accurately, business development team members are paid on a performance basis,
based on accounts being maintained and revenues generated per account.
In addition, because patients can self-refer to us, many of our patients come to us directly or through
their advocate or caregiver.
In each initial territory, we establish a relationship with staffing agencies which provide our pool of
registered nurses and nurse practitioners to serve patient accounts. We offer mileage reimbursement and
we pay registered nurses $40/hour and nurse practitioners $50/hour. In addition to enabling us to easily
scale, outsourcing our nursing resources reduces human resources and admin costs, overtime fees as well
as insurance fees.
Nurse practitioners can provide 30-35 face-to-face visits (1x) per week, while registered nurses can
provide 30-50 phone interactions per week.
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September 2015
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As the first and only exclusive post-acute transitional care provider in the country to have received an NPI
and approval for Medicare direct bill, we committed to positioning Global Transitional Care as a thought-
leader and innovator in the Transitional Care market. We have been invited to Washington DC to meet
with key government officials on the Ways & Means Committee to discuss our business and vision for
serving the Transitional Care market.
Our developing partnership with MD Anderson and pending clinical study could set the standard for a
framework pathway for transition for cancer patients from inpatient to outpatient.
In addition, we are in discussion with a major academic center in California to deploy services for their
patients, which is an opportunity to work with a leader in healthcare academia.
Economics
We generate revenues through direct reimbursement from Medicare (1x reimbursement for the 30-day
period), fees directly billed to Out of Plan patients and on a performance-based revenue share with
healthcare facilities based on our ability to mitigate readmission costs. After 30 days, and after closing out
related reimbursement codes, if needed, we offer chronic care management telephonically, which is a
separate billable code.
Medicare Reimbursement
Key inputs which determine the reimbursable amount billable per patient include the level of complexity
(moderate or high), initial visit, additional visit and chronic care management code (if needed).
Performance Share10
We believe that our value proposition for establishing performance share agreements with healthcare
facilities is compelling. We will offer our platform and services to facilities at no cost up front, which
means that they do not have to make any investment in Transitional Care whatsoever. Based on their
internal data and establishing a direct cost related to readmissions at their facility, we enter into an
agreement which stipulates that we will be paid a negotiated percentage of the savings that results after
the implementation of our services. So, for example, if the hospital is at a 30% readmission rate, and
through the implementation of GTC Transitional Care, the readmission rate declines to 20%, then GTC will
be paid up to 40% of that savings (we expect this number to be in excess of $1 million per facility per
year).
10
We have not factored in performance share agreements into the pro forma model shown in this brief and
believe that it represents significant upside to our forecasted financial results.
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Pro Forma Financials11
2015 2016 2017 2018 2019
Total Revenue $ 1,500,000 $ 26,960,000 $ 60,930,000 $ 89,600,000 $ 118,270,000
Total Direct Costs 450,000 8,430,000 19,820,000 30,310,000 41,610,000
Gross Margin 1,050,000 18,530,000 41,120,000 59,300,000 76,670,000
Total Operating Expenses 3,400,000 16,830,000 31,530,000 45,360,000 59,230,000
Operating Income (Loss) (2,360,000) 1,700,000 9,590,000 13,940,000 17,440,000
Total Other Income 10,000 - - 10,000 40,000
Income Taxes - 1,440,000 4,050,000 5,610,000 6,900,000
Net Income (Loss) (2,360,000) 270,000 5,550,000 8,340,000 10,590,000
EBITDA (Loss) $ (2,360,000) $ 1,700,000 $ 9,590,000 $ 13,940,000 $ 17,440,000
% -157% 6% 16% 16% 15%
Total Current Assets $ (120,000) $ 860,000 $ 7,360,000 $ 16,570,000 $ 28,110,000
Fixed Assets, Net - - - - -
Total Other Assets - - - - -
Total Assets (120,000) 860,000 7,360,000 16,570,000 28,110,000
Total Current Liabilities 250,000 940,000 1,900,000 2,780,000 3,740,000
Total Long Term Liabilities - - - - -
Total Equity (360,000) (90,000) 5,460,000 13,790,000 28,110,000
Total Liabilities and Equity $ (120,000) $ 860,000 $ 7,360,000 $ 16,570,000 $ 28,110,000
Total Cash From (For) Operating Activities $ (3,110,000) $ (2,540,000) $ 840,000 $ 4,440,000 $ 6,760,000
Total Cash From (For) Investing Activities - - - - -
Total Cash From (For) Financing Activities 2,000,000 - - - -
Net Increase (Decrease) In Cash (1,110,000) (2,540,000) 840,000 4,440,000 6,760,000
Cash and Cash Equivalents-End $ (1,110,000) $ (3,650,000) $ (2,810,000) $ 1,640,000 $ 8,400,000
11
The pro forma forecasts shown herein assume the successful closing of maximum amount offered in the current
round of financing. Any delay or inability to meet that objective will material impact those results.
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September 2015
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Management Team
Rani Khetarpal – Founder, Chief Executive Officer. Rani Khetarpal brings a diverse background in
healthcare that spans almost 2 decades, Ms. Khetarpal’s breadth of experience ranges from sales &
executive leadership to sales training & talent development to launch strategy & brand execution. Having
worked for companies, such as BT Corporate Express, Abbott Labs, Eli Lilly & Co, and GlaxoSmithKline, Ms.
Khetarpal’s keen understanding and insight of the healthcare marketplace has been instrumental in her
success within the industry. Respected as a leader, she has a commitment and track record of success in
delivering positive results in a very dynamic and ever changing marketplace. Ms. Khetarpal is also active
within her community and serves on the Board of Directors for the San Clemente Aquatics team, Board of
Advisors for the Sales Leadership Alliance, a member of the American College of Healthcare Executive,
and a member of the Healthcare Business Women’s Association. She completed her BS. Business
Administration from California State University, Long Beach and holds an Executive MBA from St. Joseph’s
University in Philadelphia.
Hisham El Bayar, M.D. FACS – President & Chief Medical Officer. Dr. El-Bayar is a board certified General
Surgeon with particular interests in hepato-biliary surgery and surgical oncology; robotic surgery;
laparoscopic surgery and breast diseases. In addition to Global Transitional Care, Dr. El-Bayar is in practice
in Orange, California with privileges at St. Joseph Hospital and the Center for Cancer Prevention and
Treatment, St. Joseph Hospital, Orange, CA; Saddleback Memorial Medical Center, Laguna Hills, CA and
Hoag Memorial Hospital Presbyterian, Newport Beach, CA. Dr. El-Bayar has received several awards and is
recognized as Best Doctors, 2013; Top MD in Consumers Checkbook and Most Compassionate Doctor,
American Registry. Dr. El-Bayar completed medical school at Georgetown University and residency at
UCSD Medical Center in San Diego. He earned his Bachelor of Science degree in Biochemistry from
University of California, Los Angeles, and a Masters in Physiology from Georgetown University.
Professional memberships include the American College of Surgeons; American Medical Association;
California Medical Association; Society of Surgical Oncology and American Society of Breast Surgeons.
Jan Jordan – VP Business Development. Ms. Jordan has more than 25 years of experience in the
Healthcare Industry and has developed business in Pharmaceuticals and Biotechnology, including
Regenerative Medicine. Prior to Global Transitional Care, Ms. Jordan was Director of Sales with Fibrocell
Science from 2011 – 2013 as well as Senior Executive Account Manager with GlaxoSmithKline in Managed
Care, Oncology, Emerging Markets, Critical Care, Surgical Care and Institutional sales divisions from 1989 –
2010. A graduate of Kansas State University, Jan is a member of the National Association of Professional
Women and is currently involved in various humanitarian, medical and wellness associations. Jan also
graduated from the Management Development Program at University of Southern California, Marshall
School of Business.
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Kelly Carter – Chief Nursing Officer. As Chief Nursing Officer, Ms. Carter is responsible for all aspects of
nursing service programs, standards of practice including workflow, compliance with all applicable
regulatory requirements, and established protocols. Ms. Carter brings 13 years of combined clinical and
management experience. She began her career as a staff nurse in the cardiac unit at Cedars Sinai Medical
Center in Los Angeles, CA. She spent many years as a travel nurse, caring for a wide scope of patients in
facilities throughout California, including acute care, outpatient surgery centers, wound care centers, and
adult day care clinics. Most recently, Kelly has served as a Clinical Outcomes Coordinator in Quality
Management and Admit/Discharge RN at St. Joseph Hospital in Orange, CA. In that role, she provided
administrative leadership and coordination of patient outcomes. She facilitated Core Measure initiatives,
including the data abstraction, development, implementation and evaluation of workflow, clinical
education projects, presentations, and new program and process development. Kelly has been
instrumental in leading performance improvement projects through organizations such as Southern
California Patient Safety Collaborative and Institute for Healthcare Improvement, successfully earning the
Transitional Care Record project award. She has earned an Advanced Cardiac Life Support certification for
direct patient care, Wound Care Certification, National Surgical Quality Improvement Project SCR
Certification, and Greenbelt Certification (Toyota LEAN methodology).
Mike Fefferman – Chief Information Officer. Mr. Fefferman is responsible for leading the company’s
technology strategy and managing overall IT operations. He is a proven leader with extensive experience
in planning, developing, and implementing multiple technological initiatives to serve the needs of early
stage through late stage organizations. From 2007 to 2014, Mike was head of IT for a San Diego Biotech
company. While there, Mike lead the IT strategic and operational planning and achieved goals by
fostering innovation, prioritizing IT initiatives, and coordinating the evaluation, deployment, and
management of current and future IT systems across the organization. Mike also directed the company’s
IT compliance activities around SOX and FDA regulations. From 2003 to 2007, Mike was the Director of IT
for MediciNova, Inc., a global biotech company. While at MediciNova, Mike directed the roll out of the
company wide document management system using virtualized hardware, and successfully completed the
company’s first SOX audit. Before 2003, Mike ran a successful IT consulting business and managed the IT
infrastructures of multiple clients on land and sea. Mike holds a BA degree in Business Administration
from the University of Pacific.
EXIT STRATEGY
Our focus is to establish our Transitional Care platform as a market leader in the burgeoning, $20 billion+
market in the U.S. As we execute on our business plan, we believe that our business has the characteristics
desirable for larger, more established healthcare providers to acquire market share in a growth category
which could lead to an M&A exit, if our board determines that is the most effective way to maximize
shareholder value.
In addition, based on progress in our business plan and market conditions, we may also consider an initial
public offering, as a strategy to maximize shareholder value.
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September 2015
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DISCLAIMER
This is Not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not
an offer to sell or a solicitation of an offer to buy any securities in Global Transitional Care LLC., and may
not be relied upon in connection with the purchase or sale of any security.
Shares of our Company, if offered, will only be available to parties who are “accredited investors” (as
defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are
interested in investing in Global Transitional Care LLC on their own behalf. Any offering or solicitation will
be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the
subscription documents, all of which should be read in their entirety.
To obtain further information, you must complete our investor questionnaire and meet the suitability
standards required by law.
Cautionary Note Regarding Forward-Looking Statements/Pursuant to the U.S. Private Securities
Litigation Reform Act of 1995
This investment brief contains, and our officers and representatives may from time to time make,
“forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as:
“anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,”
“likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking
statements include, among others, statements we make regarding launch of products, sales, markets,
marketing strategies, our estimates on future financial performance, revenue growth and earnings,
anticipated levels of capital expenditures and our belief that offering proceeds will provide sufficient
liquidity to fund our business operations over the next 36 months.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead,
they are based only on our current beliefs, expectations and assumptions regarding the future of our
business, future plans and strategies, projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict and many of which are
outside of our control. Our actual results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-
looking statements. Important factors that could cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements include, among others, the following:
- We have never generated revenue; we have a history of net losses and negative cash flow, and we
may never achieve profitability.
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September 2015
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- We have a limited amount of cash to fund our operations. If we cannot obtain additional sources of
cash, our financial condition and results of operation may be materially adversely affected and we
may not be able to continue as a going concern.
- Governmental Regulation. A substantial portion of our planned revenues are derived from patients
covered by the Medicare program. We cannot assure you that reimbursement payments under
governmental and private third party payor programs, including Medicare supplemental insurance
policies, will remain at levels comparable to present levels or will be sufficient to cover the costs
allocable to patients eligible for reimbursement pursuant to these programs.
- Governmental Regulation. Congress, MedPAC and CMS will continue to address reimbursement rates
for a variety of healthcare settings. We cannot predict the adjustments to Medicare payment rates
that Congress or CMS may make in the future.
- Our operations will be subject to fluctuations and are inherently unpredictable.
- We may be unable to manage our growth or implement our expansion strategy.
- The loss of our current management team or our inability to attract and retain the necessary
personnel could have a material adverse effect upon our business, financial condition or results of
operations.
- Although we plan on maintaining commercial insurance to reduce some operating hazard risks, such
insurance may not be available to us at economically feasible rates, if at all.
- Our competitive position depends on maintaining intellectual property protection.
- We may face intellectual property infringement claims that could be time-consuming and costly to
defend and could result in our loss of significant rights and the assessment of damages.
- We can anticipate facing competition and rapid technological change that could result in the
development of products by others that are superior to our product under development.
- We may face technical problems that could be time-consuming and costly to resolve and could delay
the development of our diagnostic and therapeutic products.
Any forward-looking statement made by us in this investment brief is based only on information currently
available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly
update any forward-looking statement, whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or otherwise.
CONTACT
Rani Khetarpal Thomas Carter
Global Transitional Care LLC Capital Services Group, Inc.
rani@globaltcare.com thomas@capservegroup.com
760-845-7545