NextGen eSolutions P Ltd'

1
NextGen eSolutions (P) Ltd.
An Overview May 2009
2
Company Evolution
Overview
Key Milestones

• A healthcare technology firm offering platform
  based services
• Focused on Relevance to mass market, targeting
  uncontested and underserved, rapidly evolving,
  small to mid size hospital segment (30-200 beds)
  in 35 B domestic India market
• Financial model based on Transaction based
  pricing, On-demand Services and SaaS offerings
• A Lean and effective team of 25 engineers (10
  member core team since inception) and extended
  team of twenty resources
• LAMP technology stack to enable combination of
  home-grown IP and industry standard open source
  components
• Products designed for the Web ease of
  deployment and maintenance, immense scalability
• Client base of marquee customers has established
  credible proof-points in the market

• Operations started in 2006 to develop and market
  IT products for healthcare providers in India.
  Developed HIS, Cardiology and Dental Practice
  products
• Suite of services launched to augment product
  offering in response to customer feedback seeking
  assistance in better utilization of products, and
  driving change management.
• Launched SaaS offering to help the customers with
  limited capital investment appetite and lack of
  in-house technology infrastructure.
• Proof points established across marquee client
  base

Next Steps

• Raise additional capital to strengthen technology
  infrastructure, expand installed base and launch
  broad commercialization initiatives
• RD to continue to strengthen products, build new
  functionality, multi-tenant platform and clinical
  solutions
• Quality initiatives to strengthen Product
  Engineering and Remote Service management
  processes

3
The Indian Healthcare Market
Competition

• US 35B market, expected to reach US 75B by 2012
  and US 150B by 2017
• Low insurance penetration, 4 in FY 09, 10
  estimated this year, and 25 by FY 12
• This growing demand needs US 50B annually for
  next 20 years (CII Study)
• Tax and investment incentives in place for growth
• Technology enablement in its infancy
• Indian patient maturing rapidly

• Landscape populated by a few small Healthcare
  focused companies with negligible share
• Tier I global vendors serving large corporate
  chains
• 2 to 3 players focusing on SaaS offerings to
  scale up and service the small mid tier segment
• No or minimal focus on platform based services

Target Segment for SaaS based HIMS
Provider Space - Key Characteristics

• Still massively underserved
• Build up led by private initiative
• Highly Fragmented and CAPEX Averse
• Regulatory changes (government), industry
  advances (insurance), Quality certifications like
  NABH and new services like medical tourism
  forcing the need of information transparency,
  process controls and technology deployment

4
Challenges - Small and Medium Size Hospital
Segment (30-200 beds)
The NextGen Value Proposition Innovative Mix of
Products Services

• Limited ability and appetite for significant
  capital investments, particularly technology
• Lack of environment to create stable and reliable
  IT infrastructure
• Inefficient structure and resources for effective
  third party interactions such as TPA coordination
  and authorization
• Limited visibility to revenue cycle, credits
  receivables management, with a lack of process
  checks leading to multiple points of revenue loss
• Lack of processes and controls to address issues
  like pilferage in pharmacy, revenue sharing with
  doctors etc, very prevalent in the small to
  middle market
• Customer dissatisfaction due to inefficient
  appointment scheduling, discharge billing
  processes
• Manual reporting for complex clinical diagnostic
  tests and procedures prone to errors
• Lack of accurate and flexible MIS to manage
  operations

• Innovative Pricing Models - Pay as you go
  Expensed cost instead of capitalization
• SaaS based offering that eliminates the need of
  extensive infrastructure at client location
• Product features and services to manage third
  party interactions such as TPA exchanges and
  claims management
• Revenue Management and Claims Management product
  features augmented with services to achieve
  better visibility and reduced revenue loss
• Integrated system to capture relevant operations
  data at every point to manage inventory ,
  revenue redistribution and feed to down stream
  systems
• Complete suite of outsourced platform based
  services such as appointment management and
  scheduling. Strong workflows for instant billing
  and discharge
• Template based reporting support for
  integration with medical equipments to prevent
  manual errors.
• Comprehensive MIS reporting with cutting edge BI
  tool and graphical dashboards

5
Products and Services

• Web based and Simple to use
• More than 30 modules for comprehensive
  functionality
• HL7, DICOM HIPPA compliant
• Integrated Electronic Patient Records (EPR)

Hospital Information Management System (HIMS)
Cath Lab Reporting Analytics System (CRS)

• Invasive Procedures (Angiography, Angioplasty)
• Niche Product with very intense Clinical Inputs
• DICOM integration with 3rd Party PACS
• Web enabled for remote access and basic
  Tele-cardiology

Dental Practice Management System (DPMS)

• Comprehensive Practice Management Solution
• Great animations for Students Patients
  education
• DICOM integration with Imaging Equipments

Radiology Information System (RIS)

• Basic Functionalities at Low Cost
• Integrated for Packaged selling with FUJI PACS
• HL7 Integration Capability to any compliant 3rd
  Party HIMS

BI Tool (BI)

• A Hospital Specific Reporting Framework
• Highly Configurable and Flexible
• Can Integrate Information across Multiple Source
  Systems

Services

• HospiLogix Hosted, SaaS based Hospital
  Information System
• ScheduLogix Integrated Appointment Management
  System
• Equipment Integration and Interoperability
  Services

Combination of Home-Grown IP and Industry
Standard Open Source Components
6
The Journey Customers Initiatives

Individual GPs for ScheduLogix
Fortis begins
ScheduLogix
trials
SaaS Platform Services Integration
Other regions for HospiLogix
Jeevan
Anmol
NextGen HIS
Signs for HospiLogix
Fuji PACS
ScheduLogix trial begins with first GP
integrated solution
Primus Hospital
Center for Sight signs for AdLogix
Apollo Group Action Balaji Gangaram
Metro Hospital,
MAX contract won
Yashoda
Hospital
CRS
Delhi begins CRS
for Cardiology
App.
Signs up for CRS
trials
Development
Active Pilots
Ganesh, Shanti Gopal
Manipal Group
iCare
Hospital
Arpana
Hospital,
Noida
,
Eye hospital
Raj Dadiji, GT Group Hospitals signed
CIMMS Nagpur
near Delhi
HIS
Hinduja, Mumbai
First Implementation At King George Medical
College
Metro Hospital Adds 4 more hospitals
Flagship Metro, Delhi
Lilavati, Mumbai
St. Stephens, Delhi
DPMS
7 Pilot Customers
30 Customers Live
5 Beta Customers
07
08
09
10-11
CORE PRODUCT DEVELOPMENT
GO TO MARKET
PROOF OF CONCEPT / MARQUEE CUSTOMERS
7
Our Customers

• One of the largest and most prestigious
  healthcare provider in India
• First implementation of NextGen CardioLogix for
  invasive cathlab procedures
• 10,000 Cathlab procedures captured for reporting
  and analytics
• Approved by one of the best Cardiologists in the
  country
• Work in progress to implement non-invasive
  procedures
• Web interface Open source PACS integration
  provided to create a functional tele-cardiology
  platform

• 100 Bed Super Specialty hospital in Delhis up
  market Chanakyapuri area
• First SaaS implementation of NextGen HospiLogix
  integrated with Fuji PACS (Synapse) through HL-7
  integration
• Live since 2007
• Functional integration to 3rd party accounting
  Software (Tally)
• Innovative pricing on monthly IPD patient traffic
• Ongoing support and periodic system audit to
  ensure compliant operations and system usage
• System Enhancement support on need basis

8
Recent Channel and Go-to-Market Partnerships

• Informix Data Server Ready
• Independent Solution Vendor
• IBM SmartCube Global Partner
• An example of Comprehensive DICOM HL7 based
  Integration
• NextGen HospiLogix Integrated with FUJI PACS for
  Primus Hospital
• NextGen RadioLogix for Bundled Sale with Fuji
  Synapse
• Scientific Device Equipment Distribution
  Company
• To enable National Coverage for NextGen
  HospiLogix
• Collaboration for the development of Hospital
  Specific BI Tool
• Established Govt Contractors for Civil Work with
  Healthcare Interests
• For penetration of NextGen HospiLogix Solution in
  Govt Sector

IBM
Fuji
AIMIL
Stowe Research
CESL
9
NextGen Team

• Management Team with exceptional depth in
  domestic India healthcare market and global
  expertise in technology services
• Dinesh Parekh - CEO, Senior professional with 25
  years IT/ITeS experience with global industry
  leaders like Oracle, GE SSA
• Akhilesh Khare - Director (Business Development),
  Serial Entrepreneur and member of the HCL
  founding team
• Sanjay Sengupta - Director (Technology),
  Co-founder and technocrat responsible for
  directions and strategy around technology,
  platforms and solution architecture
• Advisory Panel comprising some of the leading
  healthcare professionals across different medical
  specialties hospital administrators technology
  visionaries and academicians to guide technology
  road map, strategy validation and review of
  products and services.
• Technical team of over twenty-five dedicated
  resources, core team of ten members unchanged
  since inception, plus an extended team of over
  twenty resources, with expertise spanning across
  
• Healthcare domain specific business processes
• Interoperability expertise leveraging global
  standards and specifications (HL7/DICOM
  expertise, HIPAA compliance, etc)
• Software applications (for core care providers,
  device/equipment manufacturers, clinical solution
  providers, and health plan/insurance providers).

10
Financial Profile Ownership

• Capital History
• Initial seed funding by Promoters, Akhilesh Khare
  and Sanjay Sengupta
• Angel Investment by Arjun Malhotra, Chairman
  HeadStrong, spread over 2007
• Secured Round 1 institutional funding from Lumis
  Partners, Feb 2008
• Current Shareholding
• Key shareholders comprise the Promoter Group,
  Arjun Malhotra and Lumis Partners.
• Financial Profile
• With FY 07 and FY 08 focused on product
  development, FY 09 was the first year of
  customer proof-points across a defined, yet
  marquee client base.
• Company completed FY 09 with a proof point
  revenue of about 100,000 with an operating burn
  rate of approximately 20,000 on a monthly basis.

11
Next Steps

• NextGen has credibly emerged as a company with
• An in-depth understanding of the domestic India
  healthcare market with an effort that has touched
  over 250 healthcare providers over the last three
  years in domestic India market
• Technology team that has demonstrated an ability
  to build and launch, simple yet sophisticated set
  of comprehensive products and innovative services
  
• A focused company going after a platform based
  service delivery model and SaaS based offering to
  address a huge yet underserved segment of small
  and medium providers in domestic India market.
• Next phase of installed base expansion and broad
  commercialization, built upon our success with
  current marquee client base will require
  investment
• In building a robust technology infrastructure
  for SaaS and Services ramp-up
• Strengthening the team for managing SaaS and
  Services delivery to large client base
• And launching initiatives to kick off large scale
  commercialization
• NextGen is looking for a partner keen on
  participating in one of the fastest growing
  markets in India and bringing on-board strengths
  beyond capital to make it a success.