Strategy
Amilpar’s strategic objective is to remain the most widely recognized and largest player in the managed care industry in Brazil with the size and scale to deliver innovative products. The following are key components of its growth strategy:
Increase market share in existing regions. Amilpar believes that population growth, higher income per capita in Brazil and the exit of smaller managed care players from the Brazilian private healthcare market represent significant growth opportunities for Amilpar. The Company also believes that there are significant opportunities to expand its membership by broadening the array of innovative products and services Amilpar provides, and increasing its brand awareness.
Pursue entry into new geographies. Amilpar has one of the most well-known brand names in Brazil and a highly scalable infrastructure which allow the Company to enter new markets and continue to operate in its market segments with greater expediency than its competitors. Amilpar intends to use its solid presence in the market in which it operates to expand. The overall strength of its existing business and the scope of its third party and owned network provide Amilpar with the financial resources and flexibility to successfully consummate acquisitions and realize significant operating synergies.
Grow its dental business. There is a significant unmet need for dental coverage in Brazil and the Company intends to address this opportunity by cross-selling dental plans among its existing customer base. The dental market is particularly attractive given the low penetration and low MLRs.
Increase operating margins through medical cost management programs. In addition to Amilpar’s efficient managerial and pricing ability, the Company is committed to constantly decrease its MLRs, working with providers to optimize the cost and quality of care while improving the health of its members and enhancing the quality of its service. Amilpar has adopted a number of programs aimed at managing medical costs, including preventive medicine, prenatal care and training programs, disease and case management, home care, special care treatment units, 24/7 customer call service center with physicians on call, advanced trauma support and rescue, discount pharmacy programs, real-time electronic medical record and medical auditing.
Competitive Advantages
Amilpar believes that its competitiveness and strong growth prospects are reflected by the following strengths:
Leading MCO with strong brand recognition and reputation. Amilpar is the largest managed care company in Brazil. Its brand leadership is supported by several rankings, awards and surveys taken by its corporate clients, including: (i) SuperBrands Brasil, which ranked Amil as the most important brand in Brazil; (ii) Associação dos Dirigentes de Vendas e Marketing do Brasil, or ADVB, which presented the Company with awards for top sales and top marketing; (iii) Exame magazine, ranking Amil Assistência Médica as one of the best companies to work for in Brazil; and (iv) América Economia and Hewitt Associates Consultancy, ranking Amil Assistência Médica as one of the top 25 best employers in Latin America.
Broad and innovative product offering at competitive prices. Amilpar offers the most comprehensive managed care product portfolio in Brazil, offering managed care products to individuals in all income levels, as well as to corporate clients. Additionally, we have consistently focused on innovation, as demonstrated by: Amil Health Rescue (Amil Resgate Saúde), Amil Pharmacy Program (Programa Amil de Medicamentos), Total Care, Disease Management (Gestão de Saúde), and Medical Assistance Abroad. Amilpar believes that its ability to deliver high quality, cost-effective managed care products is key to its success.
Leading presence in Brazil’s most attractive markets. Amilpar focus on the most populated and affluent states in Brazil, including Rio de Janeiro, São Paulo, Paraná, Distrito Federal and after the acquisitions of Medial Saúde, ASL and Saúde Excelsior started operating in the states of Minas Gerais, Bahia, Pernambuco and Rio Grande do Norte. Amilpar is the largest operator in Brazil both in terms of number of plan members and revenues.
Largest provider network in Brazil. Amilpar’s extensive third-party network constitutes the largest MCO provider network in Brazil according to the ANS. Moreover, it possesses a own network. This vertical integration provides Amilpar with a deep understanding of medical cost trends and allows the Company to closely manage these costs. In addition, Amilpar benefits in terms of favorable long-term contractual pricing (and member access). Amilpar’s owned and third-party provider network provides its customers with access to many of the most well-recognized hospitals and physicians in Brazil.
Partnerships with providers. Amilpar successfully manages its third-party provider network due to, among other reasons, its senior management team’s significant experience in managing providers and provider networks. Many of the members of its senior management are physicians with post-graduate degrees in business administration, which provides them with unique insight into provider needs. Amilpar strives to be a valuable partner for its providers. Key elements of its strategy include: offering specialized training for top doctors participating in its network, giving its providers the ability to submit all claims electronically, reducing the number of medical procedures that require pre-authorization, and providing high-quality service to its providers, including promptly responding to their operational inquiries.
Low and stable MLR. Amilpar’s ability to provide high quality, cost-effective managed care products and services is enhanced through a disciplined medical cost management policy and prudent management of its risk exposure. Amilpar’s medical cost management strategy is focused on (i) predicting healthcare costs and managing future healthcare costs through adhering to disciplined underwriting and actuarial standards, (ii) innovative product design to assure high quality and an efficient management of health services, (iii) service programs and negotiation of favorable provider contracts, and (iv) efficient verticalization.
Proven acquisition track record. Amilpar has demonstrated skill in identifying, acquiring and integrating high quality strategic acquisitions at attractive prices. The Company takes a disciplined approach to acquisitions and is focused on businesses that (i) improve its scale, positioning as the number one or two in the marketplace and (ii) generate attractive financial returns and are quickly accretive to earnings. Its experience in acquiring healthcare companies and assets allows Amilpar to act quickly in identifying and acquiring potential targets.
Experienced management. Amilpar is led by an experienced senior management team, which have been working at the company for 20 years, on average. Amilpar’s management consists of professionals that have degrees in medicine and post-graduate degrees in business administration, which enables them to efficiently manage its provider networks. The long tenure of its management team and exceptional experience provide Amilpar with a competitive advantage because of their familiarity with its customers and strong relationships with the healthcare provider community.
