Exhibit 99.2

 

 

 

1 1 AccoladeAnnounces Acquisitionof2nd.MD

 

 

 

2 2 2 2 This presentation contains “forward-looking statements” –that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such ‘‘anticipate,’’ ‘‘believe,’’ ‘‘contemplate,’’ ‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ “guidance,” ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘should,’’ ‘‘target,’’ ‘‘will,’’ or ‘‘would’’ or similar expressions. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include , among others, the following: (i) risks associated with (a) the possibility that the closing conditions to the transaction with 2nd.MD may not be satisfied or waived in a timely manner or at all, including that a governmental entity may prohibit, delay or refuse to grant a regulatory approval, (b) the failure to complete or receive the anticipated benefits from the transaction, including due to Accolade’s inability to successfully integrate 2nd.MD into its business, (c) diverting management attention from ongoing business operations, (d) the commencement or outcome of any legal proceedings that may be instituted against us or 2nd.MD in connection with the proposed transaction and (f) the effects of the transaction on the combined business, including on operating costs, customer loss and business disruption; (ii) changes in laws and regulations applicable to our or 2nd.MD’s business model; (iii) changes in market or industry conditions, regulatory environment and receptivity to our or 2nd.MD’s technology and services; (iv) results of litigation or a security incident; (v) the loss of one or more of our or 2nd.MD’s key customers or partners; (vi) the impact of COVID-19 on our or 2nd.MD’s business and results of operation; (vii) changes to our or 2nd.MD’s abilities to recruit and retain qualified team members; and the risks described in the other filings Accolade makes with the Securities and Exchange Commission from time to time, including the risks described under the heading “Risk Factors” in Accolade’s Final Prospectus for its public offering dated October 21, 2020 and its quarterly reports filed on Form 10-Q, which should be read in conjunction with its financial results and forward-looking statements. All forward-looking statements in this Current Report on Form 8-K or any exhibit hereto are based on information available to Accolade as of the date hereof, and it does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

 

 

 

Today’sPresenters Rajeev Singh Chief Executive Officer Accolade Steve Barnes Chief Financial Officer Accolade Jason Melton Chief Executive Officer 2nd.MD 3 3

 

 

 

4 Integrating expert healthcare resources into a single solution that simplifies the care journey and empowers people to make the best decisions for their health and well-being. 4

 

 

 

Combiningtwomarketleadingplatforms To create the industry’s most comprehensive, integrated healthcare navigation experience. -Leader in personalized health and benefits -Relationship-based clinical model that persists throughout care journeys -Expanding platform of clinical programs that improve clinical outcomes and lower costs ->2 million members -~100 customers -4%-10% employer savings on HC spend -Leader in Expert Medical Opinion -Expert-led clinical model that delivers medical certainty in complex medical situations -900 physician experts, leaders in their respective fields, covering all specialties ->7 million members -~300 customers & deep health plan relationships with virtually no overlap -Average $5K+ savings per consult (2x ROI) 5 5

 

 

 

DeliveringMedicalCertaintyandDrivingSavings Accolade Creates Impact Across the Entire Consumer Journey treatment costs Engage in care management Annual Open Enrollment Research plan options Receive benefit card Enroll in plan Understand benefits Review health benefits Manage Rx Enroll in point solutions Research symptoms Assess provider cost Evaluate options Consider telehealth Schedule appointment. Prep for visit Verify benefits Adhere to care plan Engage PCP Visit pharmacy Visit specialist Assess financial implications, make decisionsSearch providers Consider provider quality Comply with pre-auth requirements Seek expert medical opinion 6 Treatment Decisions & High-Cost Services Address medical bills and ongoing 6Confidential

 

 

 

IntegratingExpertMedicalOpinion Further Lowers Unnecessary Healthcare Utilization Example: Improving knee pain-related utilization trends Right Member Right Decision Right Path I M P A C T Improved outcomes, satisfaction and trust -Machine learning model proactively identifies members with high risk of knee surgery in the next 12 months -Multichannel target outreach to high-risk members and referrals from member services -Mayo clinic education materials -Provider data insights on surgery experience and complications, re-admits, and length of stay -Shared decision making prior to seeing specialist -Referral to in-person or virtual physical therapy (e.g., Hinge) ⇣ 31% MRIs ⇣ 15% ER visits ⇣ 64% Outpatient surgery ⇣ 15% inpatient surgery 7 in delivery of evidence-based guidance Source: Representative Accolade customer analysis (based on service dates from July 2018-July 2019) 7Confidential

 

 

 

SolutionPortfolio Delivering Comprehensive, Integrated and Clinical Support Accolade Total Benefits Accolade Total Care Accolade Total Health and Benefits Navigation Provider Decision SupportIntegrated Population Health SO L U T I O NF E A T U R E SSO L U T I O NF E A T U R E SSO L U T I O NF E A T U R E S Benefits engagement Clinical guidance Benefits engagement Clinical guidance Provider matching Benefits engagement Clinical guidance Provider matching Case management Provider services Member services 8 Expert Medical Opinion 8Confidential

 

 

 

AcceleratingAccolade’sClinical Innovation Lowering Healthcare Spend 2021 2007 - 2019 JUNE 2020 SEPTEMBER Launched Mental Health Integrated Care OCTOBER Global Appropriateness Measures group partnership JANUARY Adding 2nd.MD Expert Medical Opinion Created a Proven High Touch, High Tech Personalized Advocacy Model JANUARY Launched Intelligent Provider Matching (MDI Acquisition) Launched Accolade COVID Response Care IPO: July 2020 Follow-on: October 2020 9 9 Confidential

 

 

 

10 10 Overview

 

 

 

11 11 11 11 14 14 14 14 OUR INSPIRATION Clint and Gabi

 

 

 

STATE OF HEALTHCARE 17 30% • The average US doctor is 17 years behind research • 30% of healthcare spending is wasted • Specialist wait times have reached 60 days in some cities • Doctors spend 1 minute on average discussing treatment 5% of employees = 50% of costs 60 days Healthcare costs rise with no increase in quality, access, or ease 1 BILLION US Annual doctor visits 1 12 12 12 12

 

 

 

VS. • Live video consultations • Expert led (nurse, records team, elite specialist) • Answers in 3 to 5 days 13 13 13 13

 

 

 

IMPACT OF 2ND.MD 85%35% $27K 14 14 14 14 improved treatment plans 30% of surgery consults result in surgery cancellation of consults lead to an alternate diagnosis +91 Net Promoter Score savings per surgical consult $5K+ savings per consult

 

 

 

EXPERT MEDICAL CONSULTATION Providing members with confidence in their diagnosis and treatment plan in 3 to 5 days Initial contact / care team RN member intake Records collected and curated by 2nd.MD Recommend specialist physician & schedule consultation 30+ minute live consultation with specialist physician Written summary & post consultation follow-up support 15 15 15 15 Delivering a World Class Member Experience

 

 

 

PERSONALIZED, VIRTUAL CONSULTATIONS

 

 

 

DIRECTLY ADDRESS MAJOR COST DRIVERS Top Conditions Cited by Employers Driving Cost % of respondents ranking condition category as a top 3 cost driver 2nd.MD Average Savings Per Case Musculoskeletal Cancer Cardiovascular Mental Health 9% 39% 78% 90% $32K $33K $39K $7K 17 17 17 17

 

 

 

18 18 Transaction Details

 

 

 

Total Customers $46BN TAM ~400 $22BN Expert Medical Opinion 94 54 1520 FY201 8FY201 9FY202 0As of 10/19/20Pro Form a Combi ned $24BN Advocacy Market 19 19

 

 

 

20 Total Consideration:Up to $460 million Cash:$230 million Stock:$130 million in common stock (2.82 million shares) Contingent stock consideration:Up to $100 million in common stock (2.17 million shares), subject to achievement of defined revenue milestones Estimated close date:Estimated by the end of February 2021 2nd.MD CY 2020 revenue:$35 million (unaudited) Guidance:Combined FY22 guidance will be provided with Accolade F4Q results

 

 

 

21 Adds Expert Medical Opinion capabilities, a highly desired employer healthcare benefit 900 leading expert medical specialists across all specialty areas ~400 customers covering 9 million+ members, with virtually zero customer overlap, provides opportunity for cross-sell and up-sell $Compelling value for employers: ROI averages 2x, while lowering medical trend line Combined TAM of $46 billion; adds payor distribution relationships

 

 

 

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