1. Brian Walker Senior Vice President SRK Leveraging Data to Drive Product Line Strategy and New Revenue

6. Recent Industry Perspective fall 2010

7. What do Other Industries and Companies do well that we can Adopt?

12. Total Customer Value

15. Churn Rate

17. Churn Rate Takeaways “ Hospital A” developed aggressive acquisition strategies on DTC and MD programs “ Hospital B” focused activity on experience and loyalty programs “ Hospital C” used HealthGrades Rankings to target both new and existing patients

18. Strategic Halo

19. The Historical View: A Product Line is the Sum of it’s DRGs and ICD-9 Codes The Silo Model

20. New Realities Require Enterprise View

21. The SRK “Strategic Halo”: Product Lines are Interdependent Downstream Downstream Feeders Feeders Product Line

23. Actual Client Data: A Slight Majority of Provena CV Patients “Enter” From Other Clinical Areas SRK 2010

24. Four Feeder Product Lines Represent 50% of “Existing Business" Upstream Business at PSJH Gastroenterology 7% Pulmonary 10% Orthopedics 15% Endocrinology 18% CV Patients Total Visits 2009 CV Patients

25. But the Mix of Feeder Product Lines Changes at the Sister Ministry PMMC Gastroenterology 10% Pulmonary 14% Orthopedics 16% Neurology 10% CV Patients Total Visits 2009 CV Patients

26. Plus They Saw “Feeder” Services at Procedure Level Plus Demographic Variables SRK 2010

27. Alle-Kiski Medical Center Four Services “feed” 35% of CV Visits from Existing Patients Upstream Gastroenterology Pulmonary Orthopedics Endocrinology CV Patients Total Visits CV Patients 35% Total Visits

28. Alle-Kiski Medical Center CV Entry Patients Provide 18% of the Visits to These Four Product Lines Downstream Gastroenterology Pulmonary Orthopedics Endocrinology CV Patients Total Visits CV Patients 18% Total Visits

29. “ Its so simple and makes so much sense.” Bill Englert Vice President of Operations And Business Development Alle-Kiski Medical Center

31. Physician Impact

32. Drill down for opportunity: Cardiology

33. Typical distribution analysis and customer value

34. Churn Rate Analysis Starts the Insights 25% are new, but at lower revenue than existing

35. And see which physicians are driving new admissions

36. And see which physicians are driving new admissions Top performers here range from 31-45% “new”

37. Downstream analysis shows New customer value increases by 53% from initial visit

38. The physician data profiles the PCP base

39. And the admitting MDs by visits and revenue

40. Plus the hospital can now understand the dynamics between Admitting and Attending MDs

41. As well as look at which physicians are “receiving” downstream business

42. Identify Revenue Opportunities

45. Promotable Products: Make the business case first, understand demographics, then develop tactics (Example: PVD screenings)

46. Lag Time: What is it, Why Does it Matter? At last a metric that both marketing and the CFO can agree upon and benefit from! Lag Time: Measures how long it takes a prospect to convert to a patient or how long it takes you to drive an existing customer back into your health system Other industries use this metric to set expectations with management and integrate other strategies as well as future tactics CFOs can benefit from Lag Time to better predict financial impact and cash-flow from marketing and other tactics

47. Conclusions and Takeaways

52. THANK YOU