Group Purchasing Solutions for the National Association of State Veterans Homes

1. Group Purchasing Solutions for the National Association of State Veterans Homes 11 11

2. NASVH / Innovatix members

3. Innovatix overview • Founded in 1993, Innovatix is co-owned by the Greater New York Hospital Association (GNYHA) & Premier. • GNYHA, founded in 1904, is a one-of-a-kind trade association comprising nearly (300) hospitals and continuing care facilities in the metropolitan New York area and throughout New York state, as well as New Jersey, Connecticut, and Rhode Island. • Premier is the largest healthcare alliance in the United States: • Total purchasing volume nearly $37 billion annually, across a portfolio of 1,300+ contracts. • Serves over 2,500 hospitals & over 75,000 other healthcare sites.

4. Innovatix overview • Innovatix is the fastest-growing GPO in the Senior Living marketplace. • With over 16,000 members (including nearly 10,000 Senior Living communities), Innovatix focuses on: • Senior Living Providers (55% of our total membership) • CCRCs, Assisted Living, Independent Living, Skilled Nursing, Memory Care, and Hospice • Behavioral Healthcare Facilities • Schools (K-12, particularly faith-based and/or private schools) • Infusion Providers, Long Term Care (closed-door dispensing) Pharmacies, “Combo Shop” & Mail Order/Retail Pharmacies • Oncology Express (independent oncology clinics) • Long-Term Acute Care (LTAC) Hospitals* • Meals-on-Wheels & other Senior Nutrition Programs* • Colleges & Universities* *

5. Innovatix benefits • Key benefits our members enjoy: • No membership fee…ever. • Far-reaching program scope and flexibility: • Significant savings on an extensive portfolio that includes: foodservice; chemicals (housekeeping, laundry, warewashing); medical supplies; office/IT supplies and equipment; capital equipment; brand, generic, & OTC pharmaceuticals; and MRO (maintenance, repair, operations) supplies and equipment. • Incredible purchasing power through Innovatix/Premier: • Our members access nearly $40 billion of combined purchasing power. • Our members’ combined purchasing volume: • Provides leverage when negotiating with suppliers, resulting in reduced costs, price protections, and inflation controls. • Customer service: • A staff of over (50) field-based and internal personnel (including RDs, LDs, LDNs, pharmacists, etc.) dedicated to our members.

6. Dedicated Innovatix field & internal coverage Central: Ed Kurley (national contact), Lynn Schumacher, Marisa Crouch North: Dave Mancione (national contact), Greg Warner (national contact), Angela Cavaness, Judy Chatham, Christopher Crane West: Sandy Davis, Francesca Mitchum, Sam Allen Customer Care: Peter Walderzak (team leader), Nadine Rameau, Pat Moise, Wellington Lora, Jenny Robbins, Elliot Bernstein, Brionne Abramowitz South: Mike Williams (primary national contact), Candace Duerr, Carlita Anderson, Alisa Sherman (national contact)

7. Member-focused events, association relationships, and advocacy • Innovatix’s 5th Annual Legislative Conference: • March 5-7, 2012, Washington, DC • The Dumbarton Group (advocacy and lobbying firm): • Provides our members with an active voice in Washington, DC. • Our financial and human resources commitments support the needs of Innovatix and our members. • 2012 Innovatix National Meeting & Exhibition: • September 2012, San Diego, CA • 2012 Premier Breakthroughs Meeting & Foodservice Forum: • June 5-8, 2012, Nashville, TN • Premier Foodservice & Facilities Regional Meetings: • Innovatixstaff attend all Premier regional meetings to meet with members. • Innovatix is very active with many national- and state-level organizations: • Senior Living-focused groups: AHCA, ALFA, AAHSA, & DMA • HIGPA (Health Industry Group Purchasing Association): HIGPA is a broad-based trade association that represents (16) organizations; members include for-profit and not-for-profit corporations, purchasing groups, associations, multi-hospital systems, and healthcare provider alliances. • HIGPII (Healthcare Group Purchasing Industry Initiative): HIGPII is an association of more than a dozen GPOs that promote and monitor best ethical and business practices in purchasing for healthcare providers.

8. Opportunities for savings with Innovatix • Foodservice program: • National program built on high quality, low cost branded products. Average savings = 10-12%. • Medical supplies: • Open distribution program offers outstanding contracts, especially for branded products. Average savings = 8-10%. • Facilities maintenance/MRO & capital equipment: • Wide range and scope of agreements with hundreds of major MRO and capital equipment manufacturers. Average savings = 10-12%. • Technology/IT & office supplies: • Expansive portfolio for all technology, IT, communications, office supplies, etc. Average savings = 8-10%. • Innovatix regional & national contracts: • Enhance the Premier program and improve categories that are more Senior Living-specific. Average savings = 10-12%.

9. Total facility solutions • Foodservice • Medical supplies • Generators • Elevators • Flooring • Furniture • Electrical • MRO (lighting, paint, air filters) • Televisions • Plumbing • Pest Control • HVAC • Fire Safety & Security • Communications • Office Supplies • PCs, printers, copiers, faxes

10. Why Innovatix? • Your veterans homes are searching for solutions: • Senior Living providers are analyzing expenditures and looking for new opportunities to save on quality product and services. • High return on investment for our members: • Access to excellent pricing across a comprehensive portfolio. • A reduction in supply chain costs, including labor, inventory, and overhead = improved revenue and cash flow. • Standardization; proactively drive product and formulary compliance. • Good outcomes, both clinically and operationally. • World-classservice from a responsive and dedicated sales and account management team.

11. On a personal note… For thirty years, the drinking water at North Carolina’s Camp Lejeune Marine Corps Base was highly contaminated by toxic chemicals, with some chemical levels at nearly 280 times the legal amount. Years later, it is estimated that nearly one million Marines and their families may have been exposed to extremely high levels of carcinogens through the water. But even now, 25 years after the wells were finally closed, only a fraction of the former residents are even aware of their exposure to the toxic chemicals. “Semper Fi: Always Faithful” unfolds like a detective novel, tracking the discovery of the contamination and taking viewers to the foreground of Jerry Ensinger’sfight for justice. Viewers will get a moving personal look into the lives of those who have lost children or are sick themselves from the contaminated water. http://info.msnbc.msn.com/_news/2012/02/08/10351686-msnbc-presents-semper-fi-always-faithful-friday-february-2410-pm-et www.SemperFiAlwaysFaithful.com

12. Thank you! Mike WilliamsAssociate Vice President, National Accounts/Senior Living Innovatix, LLCwilliams@innovatix.com (704) 845-0972 – office(646) 831-5949 – cell (704) 496-2296 – efax