Ann: Alcidion EGM Results of Meeting, page-24

Others

This would be the last post summarising my discussion with Ray and Duncan.

My apologises for clogging up the thread so much with my rumbling, particularly when the posts are not proof read or anything!

I would be interested to hear from all of you who have engaged with the board/management on whether the information in my post is consistent with that provided to you.

Any other comments or insights that you are willingly to share would also be very much appreciated by myself.

Have a good weekend everyone!

Ageing demographics, lifestyle and status of healthcare system

We were in total agreement that Australia’s ageing demographics and lifestyle will be a structural driver of Alcidion’s growth. Demand for healthcare is only going to increase as more people seek treatment for age-related aliments and chronic diseases. As we all know, health care is already a massive drain on the Federal and State budgets.

Hospitals will be facing massive pressure to prevent people from being admitted in the first place and/or to discharge people as soon as practicable (sometimes too soon in fact!). We are already witnessing some of these pressure points building.

In my view, there are only a few options:

1) Build more health facilities (e.g. hospitals) but they were come with massive sunk costs
2) Better utilisation of GPs and the important role they can play in preventative care
3) Better efficiencies and productivity in the hospital healthcare system to make better decisions and achieve better outcomes (e.g. early discharge from better diagnosis and targeted treatment)
4) Better promotion and utilisation of out-of-hospital care arrangements (particularly for remote and regional patients)

Companies such as Alcidion through the application of predictive analytics and AI can help to address the challenges as it is pretty obvious which options are cheaper in the short, medium and long run.

There will come a point in time that the system will be close to a breaking point that the pressure brought to bear on governments is so great that governments would have no alternative but to seek outside of the conventional policy settings and response for answers.

I can foresee that the pressure will be led by developments overseas followed by the domestic private hospital sector. The Federal government will ultimately forcefully link hospital funding to the adoption of productivity-enhancing technologies and the like. State governments will be forced dragging and screaming but ultimately give in. This process will take some time to play out but it will in the end.

Alcidion is already aware of this and hence their involvement in the MTPConnect grant - Hospital 4.0 project. I specifically mentioned to Ray that the out of hospital sector is, in my view, a dark horse in the sense that not much attention is paid to this but it could potentially turn out to be a quite profitable niche for market participants.

His response… I think you could be right! Interpret this how you want.