InteliCare Holdings poised to take advantage of once-in-a-generation aged care Budget spend

InteliCare Holdings Ltd (ASX:ICR) is well-placed to benefit from the Federal Budget in which record spending was committed for the Aged Care sector off the back of the recent Aged Care Royal Commission. Of the 148 recommendations by the Royal Commission, the Government has accepted (or accepted in principle) 126, many targeting the growth of assistive technology – such as InteliCare’s commercialised subscription-based Internet of Things (IoT) and Artificial Intelligence (AI) product for use in the aged care and health industries. The Government has promised $17.7 billion to overhaul the system, including: $6.5 billion for an additional 80,000 home care packages that can fully fund InteliCare technology; $10.8 million to deliver a new home care package design, including baking in recommendation 34 of the Royal Commission for a new assistive technology category to help seniors age in their own homes; $228.2 million to create a single assessment workforce to undertake all assessments that will give access to care packages faster, accelerating rollout; and An additional $13.2 billion in the NDIS with a total of $122 billion over the next four years. InteliCare CEO Jason Waller said that the company "is perfectly positioned" to take advantage of the growing tailwinds arising from the Aged Care Royal Commission and just announced record spending committed to the Aged Care sector.  "This is a pivotal time in Australia's aged/disability care evolution."  “Solid position for commercialisation”  Subsequent to the end of the March quarter, InteliCare completed a placement of $2.5 million to further expand national sales strategies including recent TV, social, digital and radio consumer campaigns. This followed strong revenue growth in the quarter, up 22% from the previous quarter and up 55% YTD from HY FY21, as well as receipts from customers increasing 911% against Q2 FY21 and resulted in a 123% YTD increase over half-year results. The company flagged the growth as a result of a WA consumer marketing campaign that generated in 835,000 metro TV exposures in Perth, more than 840,000 exposures via digital media and delivered increased page views in WA by 650% week-on-week (WoW) and 271.9% WoW nationally. InteliCare CEO Jason Waller said: “The company is encouraged by the strong demand from new and existing sophisticated and institutional investors, demonstrating the market’s belief in InteliCare’s journey to date and the exciting new phase in our commercialisation. “This raising along with existing cash reserves, place the company in a solid position to expand national consumer campaigns and commercial sales teams.  “We are positioning to capture the growing tailwinds arising from the Aged Care Royal Commission and expected flow-on to federal budgets"  Royal Commission into Aged Care Quality and Safety  Notably, the Royal Commission into Aged Care Quality and Safety report cited InteliCare as an example of how innovation funding for assistive technology can deliver benefits to the aged care sector.  In particular, the company sees future upside if recommendations 34, 35, 55 and 107, centred on reforms to care at home and assistive technology, are implemented. The company will remain actively engaged to shape report recommendations implementation and identify opportunities arising from the recently announced $10 billion increase to the federal budget over the next four years.  Industry leading AI systems use Internet of Things (IoT) data to detect changes in activity and behaviour patterns. Specialist disability accommodation market A milestone was achieved during the March quarter, with the company entering a new market in the disability sector. InteliCare received an order to supply 15 InteliLiving systems (InteliLiving hardware and InteliCare Pro subscriptions) to support a new specialist disability accommodation (SDA) reference site in Victoria.  This reference site is an initial project with further opportunities possible across the end client’s portfolio of over 10,500 properties under management in Australia across six states.  The SDA market is a large and growing segment that offers diversification opportunities for the company.  The government has set aside funding for SDA to the sum of $700 million per year as the scheme matures and this funding has already begun to attract investment from the private sector and stimulate the development of new dwellings across Australia.  New sensor integration  As part of the recent SDA proposal the company integrated wireless sensor hardware customised for the end client to provide real-time alert and panic systems.  This technology has broader applications in the residential aged care sector, as well as across other disability settings.  The ability to quickly customise the InteliLiving product by integrating new capabilities is testament to the company’s competitive advantage owning a proprietary open-architecture IoT platform, having an in-house development team and non-reliance on a single manufacturer.  New health metrics  The company also recently announced rollout of a new suite of analytics which provides significantly enhanced functional capacity to InteliLiving® with real-time monitoring and reporting of personal health metrics.  InteliLiving® Health Metrics enables the capture and recording of health data and is available via both manual and automated methods, through integrated smart health tracking devices - including Fitbit®.  The health metrics product is intended to support entry into markets aligned to the rapid global growth in Mobile health (mHealth) apps and associated remote patient monitoring (RMP), including consumer smart wearables, post-COVID telehealth, remote patient support and Hospital at Home (HaH) Providers.  The company also intends to broaden the array of integrated sensors to track blood pressure, blood glucose, weight, activity (steps), respiration, blood oxygenation and heart rate.