My name is Nova Taylor. I'm the Company Secretary of Vitasora Health. Thank you so much for joining us today. We have Marjan Mikel on the line, the CEO and MD of the company, who will provide a briefing on recent progress with key U.S. partners, expansion milestones, and upcoming opportunities expected to material impact the company's growth trajectory. There will be an opportunity to ask questions at the end of the presentation, so if you could just pose those through the Q&A function that would be at the bottom of your screen. Marianne, over to you.
As always, thank you very much, Nova, and good morning, ladies and gentlemen. Thank you very much for joining us today, and thank you for investing your time. I hope to be able to provide you with an update on where we're at with regards to our business progress in the United States. It'll be our first presentation under the new moniker of Vitasora Health, so I'm really pleased to be able to use that as an entree to what it is we're doing and the continual evolution as an organization that we've been undertaking over the last three years, particularly since we commenced our business journey in the United States.
What I thought I'd do is first start off with some of the highlights of what it is that we do for a living and why it is, I think at least, and a number of investors think that we're a reasonably good investment moving forward. It is important to note that what I'm saying here is not what we hope to do, but is what we're currently delivering. We know that our services work. We know that we reduce some of the most expensive interventions in healthcare that are out there at the moment: hospitalizations, secondary care, etc. We reduce hospitalizations with our programs by over half, and we improve compliance with patients by almost double. Now, why that's important is most of our clients have value-based contracts.
Most of our new clients have got value-based contracts where they need to be diligent in how they actually invest their dollars and cents to reduce costly events. We're proven to reduce those. We are delivering the business at the moment, so our model is scalable. We're currently delivering that. We bring together technology, devices, people, and know-how and allow us to do the work that our clients know needs to be done, but they do not necessarily have the capabilities to be able to do that. That is not to say we're not continually looking at ways of improving scalability and efficiencies, but we can handle the growth that we expect to experience over the next 12 months. We've got blue-chip clients now. We have publicly listed organizations that are listed in the United States as clients in the value-based space, a risk-share space.
We have a number of other major organizations across the United States who have chosen us or deputized us, if you will, to look after their patients when they're not sitting in front of their doctors. I've spoken about the sector tailwinds. CMS has made it clear that the days of getting paid a fee for service are limited. People will get paid on delivering outcomes, value-based contracts. They've made it very clear that by the year 2030, all value-based contracts will be on risk arrangements. We are uniquely positioned to be able to handle that. The market is huge. It is growing at double digits, and the RPM market in the United States will be worth north of $30 billion by 2030. Still a very fragmented market and ripe for the picking for an organization like ours, and we're making great progress in that space.
Even though I'm the guy with the Australian accent, our entire team is U.S.-based, and they've all done this before. This is not our first rodeo, and we know what it is we're doing, and we're delivering against the milestones that we've put in place. Business overview: recurring revenue streams now are still around about $5.5 million . We are projected internally to being around about $18 million . by the second half of next year, and we're very confident of hitting those numbers. Current patient programs are about 6,500 patients. Important to note, from our existing clients, we have a pipeline of new patients, around about 70,000. That's from clients that we currently have contracts with. I'll go into a little more detail around that, but fundamentally, I don't need another new client to hit my $18 million.
That's really important to note. Now, in saying that, being me and some of you know me, that doesn't mean I don't want new clients. We just don't need them to hit our numbers. We remain in late-stage negotiations with six major clients. Two that I said we would deliver, Evolent and TPAC, we did deliver ahead of schedule. These are six new, and I'll go into that in more detail through the presentation. Importantly, as I said previously, we know our programs work in improving patient outcomes and reducing costly medical events. That's really important because that's what our clients want. I've spoken about our blue-chip clients, Evolent, publicly listed organization. They're a partner of ours, current market cap of almost $1 billion .
Covenant, another organization, and I won't go through all of them, but we have a very blue-chip portfolio of patients who we anticipate growing our patient share with. Now, it is no surprise to anyone anywhere in the world that the current medical services systems across the globe are not working as well as they could do. Everyone recognizes that the goal really is for us to move to value-based care. Problem is that our clients don't have the capabilities to execute this. Remote intervention, as we've designed it, our ability to align around how our clients get paid and our turnkey solution positions Vitasora beautifully to be able to deliver on this and help our clients achieve their goals. This is a client that we're currently going through at the moment. Their cost base grew by 18% last calendar year.
CMS in January announced a 2.1% increase in budgetary access. Now, two in 18 just doesn't go. This is a common trend across the globe, certainly in the United States. It's fundamentally because our healthcare system has been developed around a reactive situation where people get sick, they go see the doctor, the doctor helps them with their condition, they feel better, they go home. The big issue with chronic disease is chronic diseases are asymptomatic. Usually, the first symptom of many of these chronic diseases is something pretty serious, like a heart attack. The only way that we can address the issue that this is providing countries from right across the globe is by being more proactive, and remote intervention and monitoring is a way of doing that. The issue is not going to disappear. The population continues to age.
Our patient pool are all over the age of 65, all with multiple comorbidities, all insured by Medicare and Medicaid, and really providing us with a platform of patients that have numerous comorbidities and need to be managed on a proactive basis so that they do not—sorry, so that we intervene before there is an issue. Because 99.9% of the time, the patient is not with their doctor. 99.9% of the time, we want us to be looking after them or at least monitoring what is happening with them. That is the rudimentary premise behind our value proposition. Our platform and our devices allow us to basically provide a turnkey solution regardless of what the chronic disease is. With wheezo still being a point of differentiation with us, no one can do RPM as well as we can do RPM in respiratory disorders. No one. That is a point of differentiation.
Even though it's only 5% of the total patient pool, because that's what COPD, Chronic Obstructive Pulmonary Disease epidemiology is, it still remains a point of differentiation which opens the door for myself and our sales team. Our platform is CMS compliant. We can link into EMRs, whether that's Epic or Cerner or others. You know that we can then use the platform to deliver very effective clinical services. We have tools available to us to optimize revenue based on reimbursement, appropriate revenue optimization, help our people be very productive in how it is they engage with their patient. Our platform allows us to do that. Importantly, optimize clinical workflows within our client's flow without disrupting what it is that they currently do for a living. As is the case generally, our clients have got a multitude of data.
They just do not really know how to utilize that data to gain the insights that we can gain. We use that data to allow us to better target our programs to the people that really need it and reduce the impact of complications to those patients, improve their outcomes, and reduce costs. This is what we do. This is what we are doing today. Fundamentally, unless we make life easy for our clients, they will not undertake what it is that we are selling them. Our turnkey solution, the Vitasora turnkey solution, allows us to make it easy. Let's pick on—I do not know Hawaii because it is not a place to visit. Queen's, we have as a client. We currently have a discharge program where our wheezo device is used with COPD patients to allow us to monitor those patients when they are discharged from hospital.
We provide them with the device. We train them on how to use the device, and we get paid for doing that. We also designate a care coordinator who becomes the care coordinator for that patient for the life of their program. They build a longitudinal relationship. They work with that patient to make sure that whatever the doctor said they should be doing as a COPD patient, they are doing. We capture the data. We manage the patient. We develop the relationship. We escalate issues before they become major issues to the caring doctors to make sure that we head off any problems before they manifest as major problems, and we get paid for doing that. That is our fundamental model. We make it easy whilst making sure that Queen's continues doing its core business of running its hospital, not doing remote patient monitoring.
As I said, we know our programs work. We reduce hospitalizations. We reduce the time people are in hospitals. We reduce visits, and we improve compliance. These four factors are the key drivers of cost blowouts in any healthcare system, and we improve them all. That's why our clients sign contracts with us. What sets us apart? We are a true one-stop shop when it comes to integrated virtual care. It's the easiest thing in the world for me to sell to a new client. You don't need additional cash. You don't need additional headcount. Your current headcount keeps doing what it is it's supposed to be doing. You don't need a platform. You don't need the devices. You don't need the systems. You stay focused on the waiting room filled with patients. Let us look after them once they leave your care. They like that solution.
We are also the only organization with a full-suite solution regardless of what the chronic condition is. Our friend wheezo remains a point of differentiation that allows us to provide RPM and connected care solutions to patients with respiratory disorders better than anybody else. As I said, we make it easy with our turnkey solution because we allow our customers to remain focused on their core competencies whilst introducing this very important piece of the healthcare puzzle. We are the only organization that really aligns itself around our ACOs, remembering Accountable Care Organization, big GP groups, and how they are reimbursed and remunerated. As far as we know, we are the only organization that is prepared to put its money where its mouth is and align itself around the risk/capitated value-based models that these organizations undertake. We already have one of those relationships with Hawaiin IPA and Evolent.
Our unique clinic-in-cloud solution provides us with a vehicle that allows us to go directly to insurers and CMS and do all of the billing ourselves. Our clients like that because, again, it provides a complete turnkey solution, not just to execution, but on how they get rewarded for doing the right thing and reducing outcomes. I have discussed the fact that we do improve outcomes and reduce events. Our fee-for-service model generates between $600 and $900 per patient per annum for our clients without those clients needing to do too much different to what they are currently doing. We make a fair whack of the ticket as well when it comes to delivering those services ourselves. The model is proven. It is scalable. We are doing this right now. I am not going to go through the details, but this is a model that our clients like.
This is a model that we are executing against, and we're wowing our clients. I'll go into how much we're wowing them in a moment from the feedback that I received in the last month that I've been in the United States. This is proven. It works. It delivers outcomes, and it satisfies our clients. We are also very unique in how we align ourselves around our billings and our revenue models. We have our value-based contracts. Now, this is the CMS. This is the U.S. Medicare mandated model. They want everyone on one of these programs by the year 2030. This is where we get paid for population health management. We get paid somewhere between $5 and $40, plus a bonus, an outcomes-based bonus at the end of every year for managing a whole population of patients.
The day we sign the contract is the day we start making money with these contracts. They are not service-based. The traditional model is the fee-for-service, where we fundamentally get paid a certain amount of money for every patient that we are providing a service to. Now, we either then do that through our clients and their doctors, and then they claim the reimbursement claims, remembering that RPM and every connected care program that we deliver in the United States is reimbursed. Or we use clinic-in-cloud to go directly with reimbursement claims ourselves and claim a higher level of reimbursement for the patients that we have under our programs.
We've got things that nobody else does when it comes to aligning around how our clients get paid, remembering with our clients, most of them get paid in many different ways, and we provide a one-stop revenue shop for them, which they do appreciate, particularly the value-based contracts, which is the direction I have said on many occasions is where the market is going. It is where CMS is mandated, and it is where we, as an organization, strategically have been positioning ourselves for the last three years. This is the direction we are going in. This is a growing part of our business, and this is where we will be making some great traction over the next month or two. In saying that, fee-for-service will still remain an important part of our business moving forward. I have used this example on a couple of occasions, but this is a value-based model.
This is a group that we're currently working with. They've given us a population of about 5,000 patients that we are responsible for. We have received three years of billing data. We know everything about these patients, where they are, what's wrong with them, how many things have gone wrong with them, how much they're costing, what's put them in hospital. We know everything about this under the guise of HIPAA and privacy. For that, we are going to get paid for this eventual contract, $20 for each one of those 5,000 people. For that, we need to manage them, analyze the data, work out who's who in the zoo, stratify the patient population, segment those patients, work out what we need to be intervening with them, and then deliver that service. From the day we sign the contract, we'll be earning $100,000 a month.
Now, we know from the work that we've done that somewhere between 10% and 15% of this 5,000 patient population will be on an active program of some sort. So somewhere between 500 and 750 patients will be on an active patient engagement program, which then works out a fee on patient on active program of roughly $200, give or take. Important to note that there is also a risk component to this. We know what their budget is for the monies that they need to be saving this insurance organization. We hope to be making an additional $1.25 million as an outcomes-based performance incentive at the end of every year during the three-year notion of this contract. This has yet to be signed, but we are moving very close to moving this to a reality.
This is something that, although it makes a lot of sense from a macro perspective and the mega trends in the U.S. at the moment, we're one of the only organizations that is actively pursuing this as part of our strategy, which sets us apart, not just in Australia, but far more importantly, in the U.S. Our growth over the last four quarters has been reasonably strong. As I said, with our existing pipeline of patients, we have an additional 70,000 patients available to us for program inclusion. I'll go through some of the near-term contracts that we have expedited over the last month or two, where the total patient population available to us in the near term, assuming we land these contracts, is well over a million lives. This is a huge development for us as an organization.
It was just over 300,000 at the end of last year. We have more than tripled that this year. Our existing opportunities are sources for the 70,000 patients. We have the Medicare Shared Services Program that we're undertaking with Evolent in Hawaii. That's with 1,800 attributed lives. They service almost 100,000 CMS patients across the United States in these MSSP programs. There is a huge opportunity for us to explore with them as we continue to satisfy them with what it is we're doing with Hawaii. I can tell you the feedback we've got from them thus far has been very positive. TPAC, based out of Nashville, we commenced a pilot program in Arizona. That pilot program was supposed to go for three to six months.
After only two months of execution in Arizona, they have already told us they would like to roll this program out across their entire organization, which spans 14 states. Now, that's on the back of wowing them with delivery of services that they have been very satisfied with. That is four months ahead of schedule, and that is four months earlier than we thought we'd be getting access to the additional 17,000 patients. We will commence onboarding those patients and continue to commence those patients in June with a big uptick in July. Covenant Health was a program that we started when we started a discharge program with patients coming out of hospital and providing transitions of care and remote patient monitoring to them.
They've been so pleased with the outcomes of the program that we have delivered for them that they have now expanded the scope of opportunity for us to include patients in their primary care base. Patients who aren't in hospital. There are 89,000 attributed lives in this space. We, on the 22nd of May, commenced the program to commence rolling out a program with one of their areas of membership, starting with 30,000 patients, which we will start enrolling by, sorry, July 1st. 30,000 patients. Alliance Healthcare, another existing client where we've done the work that we've said that we would do, and they've been very pleased with the work that we've done, and they've just provided us with another 13,000 patients that they would like us to recruit into the remote patient monitoring space. These are all existing clients.
These are all existing clients growing their patient opportunity wealth on the back of what it is that we're delivering to them. In addition to this, we have got quite a number of new clients in late-stage contract negotiations and some really sexy, unique contractual arrangements. One is a New York Stock Exchange-listed durable medical equipment organization. They're the guys that basically distribute Resmed-like products, so non-invasive ventilators, CPAP, oxygen, and things like that. Their patients are all respiratory in their business model, yet all of these patients are chronic disease sufferers. All of them have more than COPD issues. All of them need a broader approach to the way that they're managed.
We are already in very late-stage discussions about rolling out a significant pilot with this group for the first time in the DME space to provide a better quality of care to their patients and treating the patients as more than simply a set of lungs that need to be managed. This is really exciting. Nobody else has done work in this space. We are in the final throes of crossing T's and dotting I's with another ACO, a capitated model that will have a per member per month fee, a reimbursement fee, and also a bonus, an outcomes-based bonus payment. We hope to be announcing that in the next month or two. We are very excited about this becoming our second risk contract.
There are a number of other organizations that we are in late-stage discussions with, one on the West Coast, a large healthcare organization with 350,000 lives. Now, this will be a very interesting relationship because this will be a joint venture with this organization. Again, a completely different approach to the way that people who deal in our space in the United States operate. This sets us apart because we align ourselves around these strategic clients and partner with them in ways that they're not used to partnering with people that do what it is we do for a living. As I said, there is a huge opportunity in new business of over a million lives in the foreseeable future. Over the next six months, these will start landing, some of them in the next month or so.
We're very excited about what it is we're doing with the clients we have, the big clients. They are our focus. We're moving away from the smaller organizations that are no longer part of our strategic remit, but also with these new clients. As I've said, the outlook for Vitasora is very positive. You saw the numbers of patients opportunity we've got. We hope to grow our 6,500 programs to over 30,000 by the second half of next year. We hope that that will generate over $18 million in recurring revenues, U.S. dollars, that is, by the same time next year.
Even though our contracted clients will also grow, I'm not too worried about that because really we have more than enough opportunity with the existing clients and the immediate contracts that we're negotiating to more than hit the numbers that we have to hit. It is imperative within our organization that we stay focused on executional excellence and delivering the value that we know we can because when we do that, our patients provide us with, sorry, our customers provide us with bigger patient opportunities. You know the two of the guys on this slide reasonably well, and Jonathan joined us after the acquisition of Orb. We have a fairly seasoned organization when it comes to board management, and we're pretty lean that way. We make decisions quickly, and we're very familiar with the space.
I just take the opportunity, although I've got the Aussie accent, I spend more than half of my life living in the United States, and my entire operational team and every member of our team is U.S. based. We are, beyond no illusion, we are an American organization that happens to be listed on the ASX, an American organization run by seasoned American healthcare executives, oh, and me. We are very, very uniquely positioned to really continue to drive our growth. We do that because no one does the things that we do. No one has the bandwidth across chronic diseases that we do. No one aligns themselves around the way our clients get paid like we do. No one's prepared to put their money where their mouths are and actually back themselves in delivering outcomes like we do.
The tailwinds in the United States are clear. CMS wants value-based. The AMA, the American Medical Association, sees remote patient monitoring and virtual care as a key component to any healthcare strategy moving forward. The administration in the United States with RFK Jr. is committed to using technologies to drive efficiencies in healthcare delivery. All of that just sets up Vitasora in a wonderful position to continue to grow our footprint, continue to grow our success, and continue to do that on the back of delivering outcomes for our patients and our clients and their patients. With that, I'll hand over to Nova for any questions that may have been posed to us.
Thanks, Marjan. We have a question regarding our devices.
Someone asks, outside of the respiratory wheezo device, how do we make sure that all of our devices are cutting-edge or best practice at all times?
That's a good question. Some of the devices that we require don't need to be cutting-edge because what needs to be monitored is fairly rudimentary with some of the diseases. Blood pressure is blood pressure. ECG is ECG. The most important piece is that these devices need to be FDA compliant so that they have been approved to measure the physiological parameters that my team need to be able to monitor whether a patient's being controlled appropriately and whether their condition is being managed the way it should be. That's the important piece. We're always looking for new technologies that might provide us with a different way of monitoring patients.
One of those, for instance, is one of the smartwatches we currently have, which allows us to do a whole bunch of stuff at the same time. Now, we're looking at these devices for some of our wellness programs, but we're always looking at what's available to us and how we can utilize that to do two things. One is provide us with data that we need, but far more importantly, make it easy for our patients to use. If a device is a pain in the, you know, where to use, the patient won't do it. If they don't do it, we don't get the results that we need. Anything else, Nova?
No. I'll just give it another few seconds for any final questions to come through. Someone asked for the $18 million ARR run rate.
Could you provide a breakdown of the patient mix and mix of revenue models in achieving this number, i.e., risk share and FFS?
One third of the $18 million will come from risk share and value-based contracts and $18 million and the balance coming from fee-for-service patients this time next year. That will continue to shift significantly as we continue to pursue risk share contracts. That means that the 18, so the 30,000 patients that we have, about 20,000 of those will be in the fee-for-service basis and 10,000 patient equivalents. I did not want anyway, 20,000 patients roughly will be on fee-for-service programs with the balance of revenues being generated on a per member per month basis. It also assumes that we do not get 100% compliance because that just does not exist in healthcare. That is not peculiar to Vitasora.
Even when I was in pharmaceuticals, compliance rates were 50% after six months. That's me working for Merck, a behemoth like Merck. We do not expect 100% compliance. We will get better compliance as we continue to build relationships. The fundamental mix is one third risk, two thirds fee-for-service. That will continue to shift towards risk as we continue our journey, our strategic journey towards value-based contracts.
Thank you. Another attendee asks, is the company expected to be materially impacted by potential cuts to Medicaid and Medicare?
It's interesting to note that the cuts are more a redistribution of funds available for certain aspects of healthcare delivery. RFK Jr. has made it very clear in his mandate that technology, telehealth, and remote patient monitoring will continue to be vigorously supported by the current administration and funding. That's our space.
Cuts to pharmaceuticals and the like will not really impact our situation. What will happen is it'll become even clearer that any healthcare intervention strategy will need to incorporate technology and virtual management as part of the mix if anyone's going to have any chance of making sure that the budgets that are available to the healthcare system can cater with the growing requirements of an aging population. That was a very long-winded way of saying RFK Jr. is in our corner, CMS is in our corner, the AMA is in our corner, and our corner is one that is basically prepped around making sure that we're providing the necessary transparency around what's happening with patients when they leave their doctors. I don't see any issue whatsoever.
Thank you, Marjan. I think that is all the questions that we have.
Fantastic.
Ladies and gentlemen, thank you once again. You have my contact details. If there are any other questions that you would like to ask, please do not hesitate to reach out to me. I cannot promise I will answer them immediately, but I promise you that I will get back to you. Thank you very much for your attendance today. I hope we were able to provide a little more detail around the progress we are making and revisit why it is that Vitasora is getting the traction that it is. Thank you all very much, and I hope to hear from you again soon.