PAT COOKE CELLNETIX CIO JOHN COLE SUNQUEST REGIONAL VP OF SALES11/04/2014

AGILE PARTNERSHIPS TO ACHIEVE COMMON GOALS IN

LAB INFORMATION SYSTEMS

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A STRONGER SYSTEM

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A STRONGER SYSTEM

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A STRONGER SYSTEM

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HEALTHCAREIS ANECOSYSTEM

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CELLNETIX.COM

THE ECOSYSTEM IS CHANGING

Dramatic shifts in delivery models

Huge increase in healthcare lives

Profound downward pressure on reimbursement

Consolidation at every level

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2007: CELLNETIX FORMATION

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CELLNETIX.COM

PATHOLOGY IN 2007

70% of pathology groups are 7 Pathologists or less

Little inter-group competition (but growing competition from national labs)

Lack of subspecialization. Outdated IT tools

Size and economies of scale required to:

• Improve quality

• Reduce costs

• Subspecialize

• Expand testing technologies and IT

• Compete

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CELLNETIX.COM

WHAT WE WERE6

SMALL GROUPS

4 LABS

6I.T. SYSTEMS

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CELLNETIX.COM

WHAT WE HAVE BECOME

1LARGE GROUP

1I.T. SYSTEM

1CENTRAL LAB

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CELLNETIX.COM

STRONGER TOGETHER

53 pathologists

300 total employees

Serving 15 hospital systems

Extensive molecular program including NGS

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CELLNETIX.COM

“CellNetix is an IT company that

happens to be in the lab

business…”

Dr. Don Howard - CellNetix CEO & Chairman of the Board

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CELLNETIX.COM

PATHOLOGY LAB INFORMATION SYSTEMS IN 2007

Historically designed around dictation/transcription workflow

Often based on Microsoft Word with SQL server

Weak or non-existent specimen tracking capabilities

Workflows often involved paper, hand-writing or preprinted labels

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CELLNETIX.COM

NEW PATHOLOGY IT REQUIREMENTS

Barcoding to prevent specimen loss & patient misidentification

Paperless workflow

Workflows to support subspecialty case assignment

Rules engine to manage multi-client/multi-casetype complexity

Telepathology for virtual expertise pools

Integrated QA

Structured data entry and reporting

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CELLNETIX.COM

Preference would have been to buy

Software vendors were starting to respond to new needs (slowly…)

We needed these tools “yesterday”…

We had no choice but to build

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Buy

Build

CELLNETIX.COM

PROJECT: PAPERLESS WORKFLOW

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Scanned

Documents visible

at appropriate

stages

Scanned

Documents visible

at appropriate

stages

• All documents batch-scanned

on receipt

• Barcoded labels attached to

each document &

automatically pulled into case

Touchscreen with

“Quick Buttons”

Touchscreen with

“Quick Buttons”

CELLNETIX.COM

PROJECT: SPECIMEN TRACKING

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From Pickup In Lab: at 10+ points

Stage Specific

Touchscreen apps

throughout lab

Stage Specific

Touchscreen apps

throughout lab

Android courier app

with bar-code

reader

Android courier app

with bar-code

reader Unique bar-codes

on all specimens,

blocks and slides

Unique bar-codes

on all specimens,

blocks and slides

CELLNETIX.COM

RESULTS: ELIMINATED SPECIMEN LOSS

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0

Lost or missing

specimens

CELLNETIX.COM

PROJECT: SUBSPECIALTY ALLOCATION

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• Automates subspecialty case

assignment

• Rules based

• Balances workload per site and between

sites

• Allows for:

• Case mix

• Thresholds

• Conference coverage

• Pre-vacation workload…

CELLNETIX.COM

RESULTS: INCREASED SUBSPECIALIZATION

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CELLNETIX.COM

PROJECT: INTEGRATED LAB QA

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Default errors for

each stage in the

process

Default errors for

each stage in the

process

CELLNETIX.COM

RESULTS: REDUCED ERRORS

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CELLNETIX.COM

PROJECT: WEB PORTAL

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Contact

Diagnostician

Contact

Diagnostician

View

associated

images

View

associated

images

PDF ReportsPDF Reports

CELLNETIX.COM

PROJECT: DIGITAL PATHOLOGY

Telepathology

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• Virtual expertise pools

• Subspecialized pathology

regardless of location

Whole Slide Imaging

• Same Day IHC for remote

pathologists

• Her2 & KI67 image analysis

• Conferences

7 YEARS LATER

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CELLNETIX.COM

WHERE WERE WE NOW?

Specimen tracking

Paperless workflow

Automated subspecialty case assignment

Telepathology and Whole Slide Imaging

Speech recognition

System wide rules engine

Structured data entry and reporting

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CELLNETIX.COM

PATHOLOGY IN PERSONALIZED MEDICINE

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Prevention Therapy Management

Risk MarkersPrognostic and

Therapeutic Tests

Response

Measurement

Family History and

Cancer Genetics

•Genetic (germline)

testing (traditional,

array, and NGS)

•Some tissue testing

Major technologies

•Morphology

•Flow Cytometry

•IHC

•Cytogenetics

•FISH

•PCR

•CGH arrays

•NGS

Diagnosis

Diagnostic

Tests

Integration of Data

and Communication

with Clinical Team

CELLNETIX.COM

WHY DISCRETE DATA?

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Discrete

Pathology

Data

Cancer

Registries

Healthcare

Data

Warehouses

Translational

Research

Systems

ACO

Population

management

Standards & efficiencies =

better product at lower cost

Clients

Pathology Group

CELLNETIX.COM29

Buy

Build

A

CB

OR

PARTNER

CELLNETIX.COM

DUE DILIGENCE

Issued RFP in 2013

Reviewed 10 LIS Providers in detail

Found no solution that could replace current technology entirely

Cost of change was significant

Risk of change in 24x7x365 operation was even more significant

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31© 2014 Sunquest Information Systems, Inc. | Confidential and Proprietary

SUNQUEST AT A GLANCE

• Founded in 1979

• 30+ years experience focused on

AP and CP market

• 1,700 hospitals

• 4,000 physician offices

• 300,000+ users

• Headquartered in Tucson, AZ

• Development Centers in the

U.S., India, and the U.K.

Number ONE Provider for:

• 400+ bed hospitals

- 30% AP LIS share

- 32% CP LIS

• UK NHS Trust hospitals

- 65% share

• Acquired PowerPath in 2011

• Over 700 employees

worldwide

• Average employee tenure

is 7 years

• 8% of employees with

Sunquest for 20+ years

Experience Growth

DedicationGlobal

32© 2014 Sunquest Information Systems, Inc. | Confidential and Proprietary

CELLNETIX STRATEGIC COLLABORATION

One of the leading, most innovative collaborations in anatomic pathology

CELLNETIX.COM

STRATEGIC COLLABORATION

Win-Win

• Shared Risks

• CellNetix, giving up development capabilities

• Sunquest, ROI based on commercializing quickly

• Shared Rewards

• Sunquest, better product = increased sales & market share

• CellNetix, better product = efficiencies & improved quality

QUALITY

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CELLNETIX.COM

SUNQUEST COMMITMENT

Purchase CellNetix IP & commercialize products

Significantly enhance discrete data capabilities

Integrate molecular pathology solution that supports NGS

Integrate rules engine

Improved reporting

Hire our dev team and build development center at our lab

Move towards more agile development methodology

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CELLNETIX.COM

CELLNETIX COMMITMENT

Sell IP to Sunquest & focus on partnership rather than development

Provide space for development center at core lab

Allow open access to pathologists and lab staff

Take on beta software on accelerated schedule

Contribute ideas and innovation

Support Sunquest marketing initiatives

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CELLNETIX.COM

SHARED PRODUCT VISION

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Discrete

Reporting

For

Consistency

& Mineability

End-to-end

Specimen

Tracking

& Paperless

Workflow

Voice

Recognition

&

Touchscreen

Enabled

Integrated

“Stage

Specific” QA

Rules Engine

&

Configurable

workflows

LEAN efficiencies reducing costsImproved patient

outcomes & safety

CELLNETIX.COM

BROADER RELEVANCE

Healthcare providers and software vendors need to partner

Great software can’t be built in a vacuum

Agile development is key in a fast market

Partnerships are built on trust and shared risks/rewards

Both sides need to think creatively and be prepared to go out on a limb…

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QUESTIONS?

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