By: Mike Nicholas

Mother’s Touch Hospice Where medical care and care come together.

Table of Contents

Market 4

Opportunity 5

Service 6

Revenue 7

Market Strategy 8

Management 9

Financials 10

Competition 11

Investment 12

Target Market: Denver Colorado Area

Jeffer

son,

75%

Increa

se

Arapa

hoe,

88%

Incr

ease

Denve

r,

52%

Increa

se

Adam

s,

95

% In

crea

se0

20,00040,00060,00080,000

100,000120,000140,000160,000

88,021 77,690 78,659

49,243

154,019 145,911

119,191

96,204

2015

2030

Age 65+ 2015 population in Denver is expected to grow from 293,613 to 515,325 by 2030.

(Co. Dept. of Local Affairs as of 03/31/2015)

Counties Targeted: Adams, Arapahoe, Denver, & Jefferson

Denver is No. 6 of Forbes’ annual ranking of the 20 fastest growing cities in the nation [2014]”.

The Opportunity

Hospice utilization in the Denver area was 52% in

2013 which was below an estimated max 70%

potential utilization. (Hospice Analytics)

Industry data for Denver indicate an opportunity for

a high-quality, efficient hospice to capture a

profitable share of the market.

Denver’s population is large, increasing, and expected to do so into the foreseeable future. Of course we all know that the

huge “baby boomer” population is a part of that

current and projected population.

Increasing need in Denver requires additional hospice care providers. However,

obtaining Medicare certification makes it

difficult. Mother’s Touch management has that

experience

Denver

The Service

Provide Care Wherever

Patient Considers

Home

Hospice Considered

the Model For Compassionate Quality Care

Focus is on Comfort not

Curing

Hospice is “Supplemental

” Care, but Available 24 x

7.

Interdisciplinary Team

Provides Care

Revenue

Medicare has traditionally funded over 98% of our operations.

As long as the Federal Government funds Medicare and hospice is a part of Medicare, Mother’s Touch revenue is “recession proof”.

Medicare payments hit company bank accounts about two weeks after the related billing is entered.

Revenue projections are based upon growing patient census of two patients per month on average. This assumes capturing less than 2% of the market (2013).

Market Strategy

Website with

Continuously Relevant

Content

Website to be an “Elder Care

Portal”

Hire/Consult Those With Deep Roots

in the Referral

Community

Use of Latest Search Engine

Optimization and Social

Media Techniques

Hire Only Most Skilled, Caring, and Experienced Staff With

Strong Connections

to Our Referral Sources

Management Systems to

Insure Quality Service Delivery

Top Quality

Collaterals

Community

Engagement

Management Start-up

Mike and Patty Nicholas  Mike Nicholas has a BS in Accounting from Missouri State University and is a licensed RN.

Patty Nicholas has over 30 years of experience in the medical field.

They started National Hospice, Inc. (d.b.a. Promises Kept hospice) in May 2007 which sold in April 2011 as an asset sale to Rivercross Hospice. They followed that with the start of Promises Kept, Inc. (also called Promises Kept hospice) in 2012. It was sold to Phoenix Home Health Care May 30, 2014.

Financials

  Year 1 Year 2 Year 3 3 Year Total RatiosRevenue $826,681 $2,286,108 $3,000,096 $6,112,885 100%Total Labor 368,150 803,380 1,004,761 2,176,291 33.6%Gross Margin 368,150 1,482,728 1,995,335 3,936,595 35.6%Operational 291,294 717,231 917,416 1,925,930 31.5%Fixed Expenses 35,000 35,000 35,000 105,000 1.7%Total Expenses 694,434 1,555,611 1,957,176 4,207,221 68.8%Net Income $132,247 $730,498 $1,042,921 $1,905,665 31.2%

Competition

There were 24 Denver hospices in 2013. The

Denver Hospice had about 28% of admissions. Only 6

hospices had over 6% each, and half of the hospices had

less than 2% each of admissions.

Competition is fragmented.

The Denver Hospice and Gentiva/Harden have large

asset bases. However, these two are NOT highly

profitable. The Denver Hospice had a net loss in 2013 - - - compensation

expense was 68.9%. Some others have cash flow issues.

3

8

7

6

Number of Hospices With Average Daily Census Sizes

>100 51 to 100 26 to 50 1 to 25

Other hospices founded/operated by

management of Mother’s Touch have historically spent a larger percentage of their revenue on laboratory fees

and other indicators of patient care than were spent

by 90% of the Denver Hospices (2013).

I.E. Mother’s Touch will not sacrifice patient care for

profits.

Thank You!