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Keeping Community Hospitals Thriving and Independent

Reed LigginVP Sales, athenahealth

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100%

90%

80%

70%

60%

50%

50%

30%

% o

f Reg

ister

ed

2011 2012 2013 2014

33%

61%

84%

66%

83%

93%

95%94%

EHEP

Source: http://www.cms.gov/Regulations-and-Guidance/Legislation/EHRIncentivePrograms/Downloads/October2014_SummaryReport.pdf

Virtually all physicians and hospitals intend to adopt an EHR to help coordinate care

Those intentions aren’t translating into results

87% of physicians can’t exchange information electronically with others outside their organization

of eligible hospitals attested to Stage 1 MU

of eligible hospitals have attested to Stage 2 MU

85%

34%

41% of EHR adopters can’t even enter lab and imaging orders or request a consult electronically

72% of adults can’t access their online medical record

Source: http://www.healthit.gov/facas/sites/faca/files/HITPC_CMS_DataUpdate_2014-12-09.pptx http://www.healthit.gov/FACAS/sites/faca/files/HITPC_InteroperabilityUpdate_2014-08-06.pdf

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And the hospital business model is under assault, necessitating new operating

platforms

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Source: http://www.tha.com/blog/Default.aspx?pid=17

5.0%

0.0%

-5.0%

-10.0%

-15.0%

-20.0%

-25.0%

Total Hospital Medicare Margins by Year

20032004

20052006

20072008

20092010

20112012

20132014

20152016

20172018

2019

Community hospitals have been hit especially hard

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Between 2013 and 2014,

14 CAHs closed in 10 states.

Of the 2,000 community hospitals open in 2012,20 filed for bankruptcy in 2014.

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More than 60% of the nation’s hospitals are now part of larger hospital systems

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Since the passage the ACA, total mergers rose from 50 in 2009 to more than 100 in 2012.

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ’12

50 54 60 60 50

7693

1053841

36

162222

323467

52

40343838

2216

Total Deals

For-Profit

Buyers

Non-Profit

Buyers

Hospital mergers and acquisitions

Source: New York TImes

And yet community hospitals have some key advantages in the market

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• Long history and deep experience with community health

• Well-established relationships with patients and providers

• Smaller size makes it easier to adapt to change and standardize processes

• Experience in looking across the continuum of care

• Increased payments from those previously uninsured

• Experience running lean

My health care journey started as a hospital pharmacist

Our success formula requires an experience that feels native to athenaNet

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We are building a national health information backbone.

We build trust with health care providers, helping them do well by doing the right thing.

VISION

MISSION

athenahealth’s award-winning services can help you thrive through change

13“2014 Best in KLAS Awards: Software & Services,” January, 2015. © 2015 KLAS Enterprises, LLC. All rights reserved. www.KLASresearch.com

#1 Practice

Management System

(1-10, 11-75 physicians)

#2 Practice

Management System

(over 75 physicians)

#2 EHR

(over 75 physicians)

#2 Patient Portal

#2 Overall

Physician Practice Vendor

2014 Best in KLAS

• 62,000+ providers on athenaNet®

• Clients ranging from 1 to 5,000+ providers

• 50 states and 112 medical specialties• $14 billion in client collections per year• Acquired Epocrates March, 2013

The Cloud-based Service

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Perfo

rman

ce &

visi

bilit

yHIGH

HIGHConnection to Outcomes

Software

ASP

SaaS

Cloud-Based Service

The Cloud

Both RazorInsights and athenahealth were leaders in bringing the Cloud to health care

Ready for fee-for-value

Open platform Easy, automatic

updates

Rapid, low-costimplementation

Best in KLAS usability#1

No capex

Designed first for mobile

Single patient record across the continuum of care

RESULTS

Visibility, insight & performance coaching Interoperability-as-a-service

Software | Knowledge | Work

By joining our network you are clinically integrated with the care continuum

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• 170,000+ Interfaces• 65,000+ Trading Partners• 7,000+ new interfaces

created per month• Less than 0.01% message

processing error rate• 62,000+ Providers• 60 million patients• 350+ Imaging Centers• 39,000+ Pharmacies• 1000+ Labs• 320+ hospitals, IPAs, HIEs• 47 Registries

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Network services Population health managementAggregates data, identifies gaps in care, contact patients and coordinates care.

Patient access and care coordinationEnsures seamless transitions of care for patients and less work for staff. We take on your order and referral management work.

Ambulatory servicesRevenue cycle managementAutomated intelligence and back-office teams take on your administrative busywork.

Electronic health records Keeps providers focused on care. Delivers measurable quality and efficiency improvements.

Inpatient services

Electronic health recordsConnects care in hospital and across your community, via single inpatient information system. Includes all patient encounters from admission to discharge.

Revenue cycle managementProvides comprehensive financial management information. Delivers a real-time view of your hospital financials.

One platform to coordinate care across all care settings

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What you can expect that no one else can deliver:

Immediate Results:

We implement and start

seeing results within 6 months.

Minimal investment

: No upfront

costs ensure immediate

benefit with no risk

Seamless updates:

without costly upgrades

Partnership: Perpetual monitoring, sharing and

implementation of best practices