II. EXECUTIVE SUMMARY

Overview
Today’s healthcare organizations must not only navigate an evolving technological landscape but adapt to reforming payment and reimbursement systems as healthcare transitions from “Fee-for-Service” to “Value-Based Care” healthcare models.
The traditional model, known as fee-for-service, simply assigns reimbursements based on what services a healthcare organization provides. But in value-based care, reimbursement is contingent upon the quality of the care provided and it comes tethered to patient outcomes. This seemingly simple pivot of emphasis requires major changes on the part of healthcare providers. The old fee-for-service model encourages healthcare providers to fill as many beds and perform as many high-tech procedures, as possible. That
succeeds in driving up the cost of healthcare, but it doesn’t improve patient outcomes.
In this changing healthcare environment, providers must constantly assess how to enhance patient care and outcomes while endeavoring to increase revenue, lower costs, and manage risk exposure. Improving healthcare quality while controlling costs and risk requires greater patient engagement, which will lead to earlier diagnosis and improvements in preventing diseases and the onset of serious complications. Enrolling patients in a remote monitoring program and giving them the FREE tools to follow and reinforce
their progress will encourage healthier behavior and develop healthy lifestyle habits. Providing patients and their caregivers with a remote monitoring system is a preventive health care measure to improve patient well-being, and ultimately, prevent disease, disability, and death. CLOVIS AI provides the tools for this greater patient engagement and caregiver intervention through a world class Remote Patient Monitoring (RPM) platform accessible by smart phone, tablet, laptop, or the CLOVIS Router alone. CLOVIS RPM enables the care team to provide automated messaging and reminders of upcoming activities, including daily medication adherence, physical fitness routines, wellness and education videos, doctor appointments, etc. Daily monitoring enables the care team to interact virtually with the patient to improve quality of life and treatment outcomes.
Telemedicine is a part of an evolution of a more connected, patient-centered healthcare ecosystem. CLOVIS offers a user-friendly platform that not only analyzes real time patient diagnostic data to identify trends or episodic events, but also offers unprecedented, automated patient engagement using the patient’s CLOVIS router as the communication portal.

 

Medical Need
As the ongoing management of serious, chronic diseases impact healthcare infrastructures, new ways to solve the urgent need for cost effective, reliable, and consistent patient monitoring have become paramount in attempting to decrease the burden healthcare organizations are currently experiencing.
75% of hospitals are being fined by Medicare because of their high re-admissions rate. According to the Touchstone survey, virtual care will be one of the main deflators in an industry full of escalating healthcare costs projected to reach $3.207 trillion this year, roughly $10,000 per person (Source: National Healthcare Expenditure).
According to a report published by the National Health Council, “generally incurable and ongoing, chronic diseases affect approximately 133 million Americans, representing more than 40% of the total population of this country. By 2024, that number is projected to grow to an estimated 157 million, with 81 million having multiple conditions. About half of all adults have a chronic condition. More and more people are living with not just one chronic illness, such as diabetes, heart disease or depression, but with two or more
conditions. Almost a third of the population is now living with multiple chronic conditions.
In 2020, 7 out of 10 deaths in the U.S. were due to chronic diseases. Heart disease, cancer and stroke account for more than half of all deaths each year. According to the New England Journal of Medicine, people with chronic conditions receive only 56% of recommended preventive health care services. A 2018 study reported that seven chronic diseases – cancer, diabetes, hypertension, stroke, heart disease, pulmonary conditions, and mental illness – have a total impact on the economy of $1.3 trillion annually. By the year 2023, this number is projected to increase to $4.2 trillion in treatment costs and lost economic output.”
According to the CDC’s National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), most chronic diseases are caused by key risk behaviors:
• Tobacco use and exposure to secondhand smoke.
• Poor nutrition, including diets low in fruits & vegetables and high in sodium & saturated fats.
• Physical inactivity.
• Excessive alcohol use.
The CLOVIS RPM system can help to effectively mitigate each of these detrimental behaviors using continuous Remote Patient Monitoring rather than sporadic doctors appointments where long periods of time between doctor visits allow patients to backslide into unhealthy behavior patterns.
A few years ago, in a first-of-its-kind move, Centers for Medicare and Medicaid Service (CMS) made Remote Patient Monitoring (RPM) a separately reimbursable service under Medicare. Now, CMS has proposed three new codes for RPM services, retitled “Chronic Care Remote Physiologic Monitoring,” which do a far better job reflecting how providers can more effectively and efficiently use RPM technology to monitor and manage patient care needs, including chronic care management.
Medicare already offers separate reimbursement for RPM. The service is defined as the “collection and interpretation of physiologic data (e.g., ECG, blood pressure, glucose monitoring) digitally stored and/or transmitted by the patient and/or caregiver to the physician or other qualified health care professional, qualified by education, training, licensure/regulation (when applicable) requiring a minimum of 20 minutes of time.”
The new Chronic Care Remote Physiologic Monitoring codes are:
▪ CPT code 99457: “Remote monitoring of physiologic parameter(s) (e.g., weight, blood pressure, pulse oximetry, respiratory flow rate), initial; set-up and patient education on use of equipment.”
▪ CPT code 99453: “Remote monitoring of physiologic parameter(s) (e.g., weight, blood pressure, pulse oximetry, respiratory flow rate), initial; device(s) supply with daily recording(s) or programmed alert(s) transmission, each 30 days.”
▪ CPT code 99454: “Remote physiologic monitoring treatment management services, 20 minutes or more of clinical staff/physician/other qualified healthcare professional time in a calendar month requiring interactive communication with the patient/caregiver during the month.”
Chronic Care Remote Physiologic Monitoring is not a telehealth service. Providers frustrated with the labyrinthine and narrow Medicare coverage of telehealth services can take comfort in the fact that RPM is not considered a medicare telehealth service. Instead, like a physician interpretation of an electrocardiogram or radiological image that has been transmitted electronically, RPM services involve the interpretation of medical information without a direct interaction between the practitioner and beneficiary. As such, Medicare pays for RPM services under the same conditions as in-person physicians’ services with no additional requirements regarding permissible originating sites or use of the telehealth
place of service (POS) 02 code. This means Chronic Care Remote Physiologic Monitoring does not require the use of interactive audio-video, nor must the patient be located in a rural area or a qualified originating site. Patients can receive RPM services in their homes.
Companies currently offering Chronic Care Management (CCM) services should be particularly focused on expanding their business lines into RPM. Not only do CCM companies have current customers who can benefit from RPM services, the non-face-to-face technology and clinical integration requirements are similar. Moreover, CCM and RPM can both be separately billed for the same patient in the same month, allowing additional revenue.
According to the American Medical Associations (AMA), the inclusion of the remote patient monitoring codes “reflect how healthcare professionals can more effectively and efficiently use technology to connect with their patients at home and gather data for care management and coordination,” while the inter-professional internet consultation codes “have been added to reflect the increasing importance of using non-verbal communication technology to coordinate patient care between a consulting physician and a
treating physician.”
A proven technology solution is urgently needed to alleviate the strain on the medical system and provide new monitoring options to patients with chronic diseases that will help mitigate the high rates of re-admissions, resulting in lower costs overall and better patient care long term.
Market Need
CLOVIS AI offers healthcare providers a Telemedicine platform to monitor patient populations thus reducing re-admissions and easing concerns of emergency room utilization. A recent CDC report showed that 80 percent of adults between the ages of 18 to 64 who visited an emergency room during the first half of 2020 did so because they lacked access to other providers. Telemedicine also advances the legislative intent of CMS to provide evidence-based medicine and engage patients. Telemedicine, referred to as telehealth in the CMS rule, is a central element to this end. As written in CMS’ final rule for the Medicare Shared Savings Program, “Accountable Care Organizations must define processes to promote evidence-based medicine and patient engagement, report on quality and cost measures, and coordinate care, such as through the use of telehealth, remote patient monitoring, and other such enabling technologies.” Being able to engage and educate the patient is the only way to change patient behavior and accomplish the goals of healthcare organizations.
However, connecting with patients outside of the office visit, and providing ongoing access and transparency to care and support resources, is challenging, particularly when it requires coordination between patients, physicians, clinical staff, and third-party resources. To meet consumer demands, healthcare providers need new ways to connect with patients and deliver value-added information in a cost effective, easy to access and simple manner – and in a way that maintains consistency and continuity throughout the entire treatment process. Today’s healthcare providers need digital solutions that are specifically custom-tailored for their businesses. The CLOVIS AI platform provides the right digital
solutions that are incorporated strategically into a provider’s business, leaving little question that CLOVIS AI can improve each patient’s overall experience.
Products
With CLOVIS telemedicine tools, patients can virtually engage a physician or care coordinator anytime, anywhere. They are not limited by distance or cost and time spent driving to and from appointments.

CLOVIS AI Router

Platform Description: CLOVIS AI adopted a “hub and spoke” architecture for its platform. The central ‘hub’ is a single control device that communicates with a heterogeneous collection of end point devices into a functional team irrespective of what protocols or connectivity options a particular device uses. The platform provides the coordination intelligence and allows seamless access to a broad range of services at home, thus providing consumers with some degree of choice in what devices from various vendors they
can add to the network.
The CLOVIS Router can stand on its own and transmit data collected through the embedded sim card. Patients can view their diagnostic data on their PCs, tablets, and mobile phones as soon as the measurement is taken. The system will also send notifications to the care team if the readings are not normal.
System Details
A team of engineers financed by HME Technology Inc. developed The CLOVIS Router and content. Highlights of the system and content are:
▪ Automated Coaching: We designed The CLOVIS platform with automated messaging capabilities that enable case managers to leverage technology in their delivery and access to healthcare. Most episodic events go unnoticed or not addressed simply because there are more pressing or higher cost scenarios monopolizing their resources and attention. Case managers can create their own automated triage of events, which not only enables them to deliver consistent messaging with documented read receipts from the patient but allows them to touch the patient based on exception, even when it is something minor. This provides case managers latitude to focus on more severe situations and events that warrant
their personal touch.
▪ Patient Reward: Modifying patient behavior is challenging but maintaining the patients’ motivation and keeping them engaged over time may be even more difficult. Gamification is a term used to reward someone for performing a chore. CLOVIS AI has gamification technology built into the architecture and enables any healthcare organization to create a myriad of rewards to offer to their patients for adherence to their prescribed treatment plan. We can divide each population into subgroups that are driven by different rewards, whether it is monetary, entertainment, gifts, and the like. Gamification is pinnacle to keeping patients engaged and having a successful population health management program.
▪ Connected Diagnostic Devices: CLOVIS AI approved diagnostic devices have kept pace with scientific and technological advancement. We incorporate all the diagnostic devices with the ability to connect out of the box to the Router and transfer biometric data collected.
▪ Patient Health Management System: The CLOVIS AI Patient Health Management System is the backbone of the Routers’ platform. It offers healthcare providers the ability to develop personalized programs that aid the patient in monitoring their health and forming positive health habits. Each program is comprised of intervention strategies that improve patient adherence and increase the clinical benefits of doctor prescribed therapies.
The CLOVIS AI Patient Health Management System generates all the reports and analytics that are required by healthcare professionals. It allows the healthcare professional to customize reports and schedule them for printed, faxed, or digital transmission and storage. The system provides instantaneous vital sign feedback, health coaching with virtual visits, and patient rewards, all of which encourage the patient to remain engaged in the management of their health. The system also allows patient access, whereby patients can update their contact information, review reports, search for notes and add notes. More importantly, patients can review their logbook settings and amend their daily schedule. Further, patients can customize how they would like to view reports by selecting the time frame to view reports (such as last 30 days, or last 14 days), They can also select multiple reports to add to their “On-Demand Reports”.
The CLOVIS AI Patient Health Management System makes it easier for the patient and their health care team to stay up to date on the patient’s current status with the software ability to create a five-star rating for the patient and the doctor. The star rating capability embraces Medicare’s current structure used today that determines how much a doctor is reimbursed based on their star rating.
Phone Application Beneficial for RPM/CCM
The largest separations between CLOVIS technology and their competitors are our cellular app capabilities that includes, Standalone Capability, Angle Support Technology, and Television Connectivity, which gives patients the ability to connect to and interface with their television set. CLOVIS makes remote patient monitoring (RPM) and customer communication management (CCM) simple and convenient for both the patient and care provider.
Standalone Capability
• Through the cellular application there is never a need to refer to the website, as most of the industry does. With CLOVIS you can use the cell phone to transmit the medical history reporting to the doctor’s digital database, fax machine, or the email address with the push of one button. This can be set up for automatic transmissions in the beginning, as well.
• Notifications will be given to the patient/user as reminders to take their medication if it was not taken.
• If the patient/user vitals are trending badly or doing well, the phone will remind the patient/user of what can be done to either help them or to congratulate them for a job well done.
Angle Support Technology
The patient/user can request support while on their cell phone through a short video that recognizes where they are and what they need to view. Or the support can be through a text
and the Angle Support person knows again what support the person needs. The most amazing support CLOVIS offers is the ability to take over the cell phone screen and show the person how to accomplish the task at hand.
Television Connectivity
The CLOVIS Router offers Cellular, Wi-Fi and Blue Tooth all built into one product that functions as a stand-alone product or can be connected to the home television enabling information gathered through the router to be pushed through the television screen without the need of changing the source.
Competition
As with any industry, there is competition in the telemedicine arena. According to mHealth Intelligence, “Telemedicine technology first began as a form of healthcare delivery in the late 1960s due to the needs of the National Aeronautics and Space Administration (NASA) and the Nebraska Psychology Institute,” according to a paper written by researchers from Saint Louis University and Bentley University and published in the International Journal of Environmental Research and Public Health. Throughout the last fifty years, there have been multiple barriers standing in the way of widespread adoption of telemedicine technology and remote monitoring tools. Financial, regulatory, and technological challenges made it more difficult to advance telehealth adoption, but current healthcare reforms may bring about a change in this arena. The lack of broadband infrastructure has proven challenging for the advancement of many forms of telemedicine, specifically high demand video and store-and-forward services, which require expansive health networks,” the research paper stated.”
With the proliferation and improvement of broadband networks across the United States, telemedicine is experiencing utilization to its maximum potential. Electronic medical records and other health technology systems have also advanced to the stage where telemedicine communicates effectively with the caregiver. After several years of development, The CLOVIS platform is ready to be deployed. Its features surpass the competition in the following ways:
▪ Full suite of products—CLOVIS is an all-in-one system which connects to a full suite of products the caregiver may order for each patient’s specific medical condition. Caregivers can add or remove diagnostic devices and capabilities as the medical need requires.
▪ Future proof—The CLOVIS RPM system will connect, pair with, and accept most medical diagnostic devices and other technology available now and in the foreseeable future.
▪ Clinical and non-clinical—The CLOVIS design also provides the clinician and patient with non-clinical information. The system can accept other IoT devices, such as motion sensors and electronic light switches, which may reinforce healthy behaviors and add conveniences important to the patient’s lifestyle.
▪ Price Point—Management’s long-established relationships with manufacturers in Asia and years of experience in the medical device industry have contributed to the well positioned moderate price point of the CLOVIS RPM system.
▪ Flexible Open Source—The CLOVIS RPM system easily connects and interacts with other devices using universal open-source planning.
The primary competitors and their telemedicine systems are:
• Phillips—IntelliVue
• Honeywell—Lifestream
• McKesson—Homecare
• Vivify—Pathways +Home
There are other companies in the market, but only the CLOVIS platform provides all the competitive
advantages described above.
Target Markets
CLOVIS plans to target the United States and International RPM markets via three primary distribution channels:
▪ Payor Patient Management Groups—these represent organizations responsible for managing chronic care patients on a capitation basis (a set amount for each patient over a certain time period). These organizations need ways to cost effectively and efficiently care for the patient in order to
maintain profitability.
▪ Direct to Doctor—CLOVIS is contracting with organizations to sell its RPM platform directly to physicians on a wholesale basis, allowing the physicians to use their existing fee-for-service billing codes for remote patient care.
▪ International—Many international health systems and institutions are not yet prepared to implement the use of the entire CLOVIS platform but do need improved Diabetes management. Therefore, the Company will assist international customer/partners in setting up the server in their country. The sim card built into the Router will accommodate most of the world’s cellular transmission sites.
In the United States, the Company has agreements with several early adopter caregivers, such as:
• Georgia Physician Group
• Test-n-Share
• Heath Observation Platform (HOP)
• Pinnacle RX
• Anderson Health
Market Outlook
The outlook for Value-Based Care and Remote Patient Monitoring (RPM) is extremely positive, with various sources projecting compound annual growth rates (CAGR) in the 20% range.
For instance, UnivDatos Market Insights issued a press release on June 2, 2021 regarding a new report on the value-based care market, stating: “The Global Value-Based Care Market was valued at 2.03 billion in 2020 and is expected to grow at a CAGR of 20.3% by 2027.” It futher says: “As per the Health Payer Intelligence survey 2018, nearly 80% of payers stated improvements in care quality from providers in obtaining value-based settlements. Besides, 64% of payers stated enhancements in provider relationships and 73% of payers stated that patient engagement with beneficiaries improved by using value-based care”. The press release concluded with data from two major Medicare Advantage Plans: “In 2020, According to healthcare firm Humana, 67% of individual Medicare Advantage members were cared for by primary care providers with value-based arrangements and gained better outcomes. Also, in October 2020, there were around 85% of Cigna’s Medicare Advantage network physicians, who were working in value-based payment arrangements.”
In the RPM market, Grand View Research (GVR) has issued a new market analysis report stating in part: “The remote monitoring systems serve with improved chronic disease management including early warning signs and progress tracker thus boosting its demand in the coming years at a global level. Chronic conditions account for 90% of the healthcare costs in the U.S. annually. This can be prevented by timely assistance provided to patients using a remote monitoring system. It can delay emergency room visits and hospitalizations as telemedicine apps help in digitizing and automating critical tasks, which reduces hospital administrative tasks thus expanding usage of remote monitoring systems in the coming years.”
GVR’s market projection for the growth in RPM systems market, like CLOVIS AI provides.
There could not be a better time to participate in this market as the CLOVIS AI RPM system and accompanying app will save enhance patient care and save lives. The GVR summary of their report further states: “The personalized telemedicine app provides a communication platform for remote and real-time monitoring of patients that acts as a bridge between caregiver and patient. This step-change, borne out of necessity, has changed the entire look of the market for remote patient monitoring system post-COVID-19 as well. According to the Centers for Disease Control and Prevention (CDC), over 100 million people have hypertension in the U.S. Hypertension further increases the risk of heart disease. The American Heart Association (AHA) also supports initiatives that increase access to the use of Remote Patient Monitoring technologies (RPM) for better health management. Efforts from device manufacturers to develop advanced products are expected to further propel the growth.”
Management History
The CLOVIS AI management team and advisory board members are a collection of professionals that came from different divisions of the healthcare industry. Each of these individuals were working with Mack Bryson, the CEO and founder of CLOVIS, prior to the company’s existence. Each of them recognized the importance and the industry need of the product and helped Mack in bringing it to the market.
Discovering phenomenal business opportunities does not necessarily create value. To achieve exceptional benefits, one must choose to pursue the opportunities and take steps to exploit them. Mack has been one of the pioneers in the Telehealth industry for a large portion of his career in the manage care market, which embraced the concept of monitoring people from home years before Medicare implemented and offered reimbursement to the doctors.
Seeing the future promise of remote patient monitoring, Mack approached industry experts he had known for years to manufacturer the CLOVIS Router using innovative cellular technology, and develop the software system, to run the first pilot program.
With the help of Dev Watson, the CIO of Georgia Physician Group, Mack was able to get his CLOVIS Router recognized as the preferred product for the reimbursable grant offered by the Trump administration for $250 million as well as the Biden administration grant for $300 million. Supplying the hospitals in Georgia the needed routers for this available grant funding will provide CLOVIS AI the volume required for significant quantity discount pricing from the CLOVIS Router manufacturer, thus enabling the Company to expand rapidly into the Medicare physician market that is expected to become the next trillion-dollar industry.
Benefit to Doctors
Doctors are reimbursed by Medicare and supplemental Medicare Advance Plan insurance companies for each Medicare patient enrolled in the CLOVIS AI RPM Program. The national average reimbursement is $126 per month per patient. On average, the Doctor will receive $1,512 per year ($126 x 12 months) for each patient in the program. For each patient in the Program, CLOVIS charges $60 per month for the services and equipment, or $720 per year ($60 x 12 months). The average medical practice has about 500 patients who will qualify for the CLOVIS RPM Program. If a Doctor were to place 500 patients in the Program, his annual gross reimbursements would total $756,000 (500 patients x $1512/year) minus Program costs to CLOVIS of $360,000 (500 patients x $720/year) generates a Net Profit of $396,000 to the Doctor’s practice. Adding the benefits of increased care and concern and improved medical outcomes the Doctor has provided to his patients, this makes for a good year in the medical business.
Investor Exit Strategy
The Founding Members of the Partnership are looking at a two-to-five-year time horizon to sell CLOVIS AI or accept an offer to merge into a larger established player in the medical sector. Management intends to groom the Company by continually recruiting doctors, medical practices, hospitals, healthcare networks, and medical institutions to embrace our system and place their patients in our RPM program. This will increase monthly and annually recurring revenue streams like a subscription-based business model such as Netflix. Medical companies with recurring revenues of this nature can generally demand a purchase price of eight times annual net sales. The potential is enormous should our business plan be only moderately successful. The managing members and members our advisory board have built up and sold businesses before, and they fully expect this venture to be a home run, most probably within three years. The Partnership has no interest at this time of taking the company public.