Pre-bid Conference Self-Pay & Third Party Collections

1. Pre-bid ConferenceSelf-Pay & Third Party Collections Agenda Sign-in Introductions Alliance Overview Sourcing Event Overview Historically Underutilized Businesses Supplier Questions/Inquiries Tuesday, July 22, 2008

2. Strategic Initiative

3. Board of Regents 2006 -2015Strategic Plan “Expanded Use of Joint Purchasing – The System will continue to explore new opportunities to leverage the collective size and strength of our campuses through joint purchasing agreements.” 1 2 3 4 5 6 Enhancing Student Success Improving Health in Texas Improving productivity and efficiency Increasing Research, Global Competitiveness, and Technology Transfer Assuring integrity, accountability, and public trust Enriching society through arts and cultural contributions “ By June 30, 2007, have in place a framework that is supported by mechanisms for purchasing of equipment, services, and supplies (e.g., research supplies and equipment, office supplies and equipment, and clinical materials for ambulatory programs) in order to maximize the overall purchasing power of the UT System health institutions. This will include UT System supply chain activities as well as purchasing by specific institutions to serve multiple campuses, when cost effective.”

4. Alliance Governance Executive Vice Chancellors, Vice Chancellors, Associate Vice Chancellors and the Presidents from each health institution provides overall strategic direction Comprised of the Chief Business Officers of the health institutions and UT System Administration, this body serves as the rule making and primary governance authority of the Alliance Comprised of the Chief Supply Chain Officers of the health institutions and UT System Administration, this body governs routine activities and operations of the Sourcing Team Strategic Sourcing Team includes a dedicated group of Supply Chain professionals responsible for Strategic Sourcing and Supply Chain initiatives

5. Spend Councils:Critical Success Factor Created at Three Strategic Levels UT System Institutional Senior Management End User/Departmental 1. 2. 3. Facilities IT Med/Surg Research Admin Roles Guidance & Direction Technical Expertise Leadership Spend Pool Identification Contract Compliance Change Management

6. Alliance Business Model Total Cost of Ownership with technology driven synergy Group Purchasing Organization Core Operating Model Increased Supplier Management and Value Added Services Additional Rebate Opportunities for Alliance Members Savings Generated Directly Impact Operating Margin and Budget Saving Activities Strategic Sourcing • Dedicated Sourcing Professionals • Data Driven Analysis • Aggregated Purchasing Leverage • Long-term Cost Savings • Improve Benchmarking • Best Practice Collaboration • Information Sharing & Collaboration • Supplier Relationship Management Integration of HUB

7. Sourcing Event Overview Objective of the RFP Background Information Criteria for Selection Fee Schedule HUB Reporting Key Events Schedule

8. Sourcing Event Overview Objective and Background Our intent is to engage suppliers that will provide the most practical and cost effective business model to serve the needs and services for the Alliance and other contract participants. Selection of “Preferred Supplier (s)” Our goal is to reduce the amount of current suppliers (~12-15) to a smaller group. The annual transactions among the 6 health institutions is approximately 55,000. This event is led at the UT system level. System has been working with the Subject Matter Experts (SME’s) over the last 6 months to initiate this event.

9. Sourcing Event Overview Criteria for Selection – Based on “Best Value” Section 2.3 of RFP The cost of services proposed; please be advised that UT System and Institutional Participants cannot contract to pay Preferred Suppliers an amount in excess of 30% of the total obligation collected The reputation of Proposer and of Proposer’s goods or services The quality of Proposer’s services The extent to which the services meet UT System needs Proposer’s past relationships with UT System and its institutions and affiliates the impact on the ability of UT System to comply with laws and rules relating to historically underutilized businesses and to the procurement of services from persons with disabilities The total long-term cost to UT System of acquiring the Proposer’s services The availability of training for UT System personnel The Proposer’s qualifications including prior experience and references The content of Proposer’s proposal Proposer’s exceptions, if any, to the terms and conditions identified in this RFP (ref. Sections 4 and 5.3.1 of this RFP) Texas Legislature Education Code – Section §51.9335 – Acquisition of Goods and Services Best value – Price and Non-Price factors Section 5 of the RFP Proposer Questionnaire Attachment A Fee Schedule Attachment B

10. Fee Schedule

11. HUB Presentation Cynthia Booker HUB Coordinator and Technical AssistanceProgram U. T. System Administration

12. Sourcing Event Overview Key Events Schedule

13. Sourcing Event Overview RFP Contact Roger Esparza Sourcing Specialist Phone: 713-792-1635 E-mail: resparza@mdanderson.org

14. Sourcing Event Overview ?’s Supplier Q & A

15. Thank you for your attendance and participation