Business Overview – Click Here to See – Executive Summary, Click Here to See – Pages 5-18 of Offering Memorandum
Clovis ai LLC was formed as a Partnership to participate in two of the fastest growing medical industry sectors: Remote Patient Monitoring (RPM) and transition from “Fee-for-Service” to “Value-Based Care” reimbursement models; which are projected to grow at 20% CAGR for the remainder of this decade. RPM improves chronic disease management and provides early warning signs and progress tracking to improve medical treatments and reduce costs.
Chronic conditions account for 90% of the healthcare costs in the US annually. When including indirect costs associated with lost economic productivity, the total cost of chronic disease in the United States reaches $3.7 trillion each year, approximately 19.6 percent of the country’s gross domestic product. The cost of chronic disease in the United States will continue to grow, particularly among the aging Baby Boomer generation and due to increased disease prevalence in younger groups.  A disease is considered chronic when it persists for at least a year and requires ongoing medical attention or limits daily activities. Our RPM System can help mitigate costs and deteriorating health issues caused by chronic conditions.
Clovis ai LLC (the “Partnership”) has developed a stand-alone cellular-based RPM router that regularly transmits daily patient vital signs to a central healthcare monitoring system without the need for Internet access. Since 2018, the founders have run test and pilot programs in Florida, Mississippi, and Georgia proving the effectiveness and reliability of its RPM system. The Partnership was formed to introduce the Clovis ai RPM System to the chronic care management (CCM) market and invite a few qualified investors to participate in funding its future growth.
Chronic diseases impact healthcare infrastructures and there is urgent need for cost effective, reliable, and consistent patient monitoring to decrease the burden healthcare organizations are currently experiencing. Half of all adults in the US have at least one chronic condition, such as diabetes, heart disease, cancer, obesity, or kidney disease according to a report by the Centers for Disease Control and Prevention published in The Lancet. Almost a third of the population is now living with multiple chronic conditions.
To encourage proactive and preventative medical regimens among healthcare providers, Medicare recently added new CPT reimbursement codes for implementation of remote patient monitoring and chronic care management programs. The average doctor’s medical practice has about 500 patients who will qualify for the Clovis RPM Program. Medicare pays reimbursements to the practice averaging $126 per patient per month participating in the program. The cost to the doctor is $60 per month to Clovis ai, which covers the RPM Monitoring equipment and router, HIPPA compliant data transmission and storage, and 20 minutes per month of nurse-to-patient consultation and follow-up. The doctor profits $66 per month per patient or $792 per patient per year. 100 patients on the Clovis RPM Program will add $79,200 per year to the bottom line of the medical practice. 500 patients in the Program increase revenues for the medical practice by $396,000 per year!
The Clovis Router operates in concert with a suite of Bluetooth monitoring devices tracking such vital sign measurements as body temperature, blood pressure, electrocardiogram (ECG), glucose level, pulse and blood oxygen level, medication adherence, activity levels and weight. Measurements can be stored in the Router and then forwarded to the AI cloud monitoring system and the healthcare provider automatically. The patient and the doctor will have secure online HIPAA compliant access to all historical vital signs and test results via the Clovis Web Portal.
The Partnership is collaborating with individuals experienced in medical technology, healthcare services, device sales and marketing, and healthcare program management to successfully roll out the Clovis RPM Program. This group has seasoned relationships with state and federal agencies and private healthcare institutions to help propel distribution of the Clovis RPM Program and related support services. Institutional contracts may result in orders of thousands of router and equipment packages (Units) at a time. Aside from the anticipated volume of patients predicted to on-board through physicians, there are hospitals in our contact groups approved for government grant funding to supply the Clovis Router in the states of Georgia, Mississippi, and Tennessee.
The Partnership has projected straight-line sales ramping up to an average of 500 Units per month in the Forecast section of the Offering Memorandum (Exhibit E), although actual order volume will be quite erratic and unpredictable. The Partnership receives $60 per active Unit per month on a recurring basis. Of this, $15 is paid to a nursing service to provide 20 minutes of patient consultation and progress follow-up per month. Data transmission fees are negligible as transmission takes seconds per day and data time blocks are purchased in bulk, bringing the average monthly cost per patient to under 25 cents. Each Unit (router/monitoring equipment) costs $100 to $200 depending upon the mix of vital signs monitoring devices the doctor prescribes. Unit costs are paid for within four months of activation. Almost $45 per patient per month is realized by the Partnership to cover operating costs and ongoing inventory purchases. The accumulating effect of monthly recuring revenues generates healthy profits beginning in year two. Churn is estimated at 1% per month on all accounts (12% attrition rate).
Exit Strategy of the Partnership is to sell Clovis ai or accept an offer to merge into a larger established player in the medical sector (for cash and/or publicly traded securities) over a two-to-five-year time horizon. 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. Increasing monthly recurring revenue streams builds significant value for the Partnership. Medical companies producing recurring revenues of this nature can generally demand a purchase price of eight times (8x) annual net revenues.
For example, If the Partnership is successful in meeting its 3-year projected revenues, the acquisition value could be in the range of $70 million (8 x $9M in Revenue). Purchasers of the Units offered herein would be entitled to 16% of the proceeds or $11.2 million ($70M x .16), which on a per Unit basis (assuming all 1,600,000 units offered are sold) would equate to a value of $7 per Unit, or a 700% ROI (return on investment). Of course, no such return can be assured, but the potential is there for this type of “subscription based” valuation model. See Section V “Risk Factors” for certain factors that could adversely affect an investment in the Units.
Subscription Procedures – Refer to; Exhibit AExhibit B –   Exhibit C –  Exhibit D
Clovis ai LLC is structured as a Partnership and each new Member (Purchaser of Units) must agree to the terms and conditions set forth in the Clovis ai LLC Operating Agreement in Exhibit A. This is accomplished by signing and dating the Operating Agreement Counterpart Signature Page in Exhibit B.
The Subscription Agreement in Exhibit C must be completed thoroughly and accurately to ensure that your Units are registered correctly and the that the Partnership can contact you with regular updates and provide important tax information. Remember to initial the bottom right corner of each page.
This investment is available to Accredited Investors ONLY, which basically means that Purchasers must have a net worth of $1 million or income of $200,000 per year for each of the current and previous two years; and must complete and sign the Confidential Investor Suitability Questionnaire in Exhibit D attesting to their Accredited status. Information provided is for securities regulatory purposes only and will be treated in a STRICTLY CONFIDENTIAL manner. Your information will NOT be shared with or sold to any other Party.
Payment for Units subscribed to can be made with a certified bank check or via wire transfer in US dollars. Payment instructions into the Chase Bank Escrow/Funding account are on Page 9 of the Subscription Agreement. All purchasers of Units must timely submit completed, signed, and dated Exhibits B, C & D by mail, courier, or scanned documents to the email address provided with the wire transfer instructions.
***Thank you for your interest in participating in the Clovis ai Partnership***