MT PPM 080515-nl
SECTION 1: Synopsis of Operations
After the offering is funded, the Company will relocate to a convenient, financially viable area of Denver and hire or finish hiring the necessary and mandated staff such as: a Medical Director; social worker; and any additional hospice care staff. At first, the Company's main office will be at the President's residence, but will eventually migrate to a commercial office structure. Both of these locations are viable and allowed in the Medicare Certification process and will allow for an efficient and economical use of time and capital during the certification process. Upon the completion of the hiring process, Mother’s Touch, will be able to begin the certification process (commence operations. Medicare hospice certification requires taking care of a minimum number of five patients before a facility may call for a certification review/survey/inspection. Once those admissions have been completed, Mother’s Touch will “call for a survey” (from, for example, The Joint Commission). By nature, the survey/inspection process focuses on the business policies and procedures, compliance with regulations, care standards, etc. per 42 CFR 418, (http://www.cms.gov/Regulations-and-Guidance/Legislation/CFCsAndCoPs/ Hospice.html) inspecting a facility. Inspection is a random visitation and is not announced specifically to the facility managers prior to the survey taking place. It can take up to four full months from the time the survey is requested until an agency such as Consumer Assessment of Healthcare Providers and Systems (CAHPS), https://cahps.ahrq.gov/surveys-guidance/index.html or The Joint Commission (http://www.jointcommission.org/) make their site visit and complete its 3-day survey. The survey may also be completed within as little as two months of the request. Care provided to patients prior to completing and passing the survey requirements, and all expenses related to that care, are “out of pocket” and can never be recovered. Once the organization passes the survey, all care provided from that day forward is billable to Medicare. However, in the past, it has taken up to three months after passing the survey to get access into the Medicare contractor’s computer and receive Medicare reimbursement payments deposited into the company’s bank account. Mother’s Touch Hospice requires a total investment of $280,000. The Company believes this amount of working capital will be sufficient to complete the survey process (resulting in Medicare Certification) and to support the ongoing operations and expansion into the Denver Colorado metro area. During this certification phase working capital will be the before-mentioned rent, salaries, advertising (promotion, marketing materials, research as examples), offering expenses, and legal and professional fees. We encourage potential investors to carefully review this Private Placement Memorandum for disclosure information about the Company, operations, investment risks, and other pertinent data regarding the Offering. Potential investors are encouraged to ask questions of Management regarding this Offering or the Company’s planned operations by calling 316-682-1232.
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