"providing the full spectrum of healthcare consulting" 109 International Drive, Suite 140 / 150. Franklin, Tennessee Office:

Transcription

1 "providing the full spectrum of healthcare consulting" 109 International Drive, Suite 140 / 150 Franklin, Tennessee Office:

2 ABOUT US ( SHP ) is a financial advisory services firm focused exclusively on the healthcare industry. We provide event driven services to support Transaction Advisory Services; Turnaround & Restructuring; Performance Improvement; Interim & Crisis Management; Lender Services; and Post Transaction Services. is uniquely qualified to provide you with the tools and support necessary to achieve success in today's ever changing and challenging healthcare environment. SHP will have an immediate positive impact on the financial and operational performance of your Organization. SHP is an expert model. Each of our Partners, s and Senior Advisors possesses at least 25 years of experience in hospital operations and consulting. The significant and diverse experience of our Partners, s and Senior Advisors, provides us with the ability and resources to assist organizations of all sizes throughout the United States. SHP specializes in the areas listed below. AREAS OF EXPERTISE: HEALTHCARE ORGANIZATIONS SERVED BY SHP: For-Profit and Not-For-Profit Healthcare Systems Community based Not-For-Profit Hospitals Academic Medical Centers (AMC s) Specialty Hospitals Rehabilitation Hospitals Psychiatric Hospitals Long-Term Care Hospitals Multi-Specialty Physician Practice Groups Start-up For-Profit Healthcare Companies Drug and Alcohol Rehabilitation Companies Real Estate Investment Trusts (REIT s) TRANSACTION ADVISORY SERVICES TURNAROUND & RESTRUCTURING PERFORMANCE IMPROVEMENT INTERIM & CRISIS MANAGEMENT SHP ALSO PROVIDES SERVICES TO: Law Firms Financial Institutions Investment Banks Venture Capital Firms Private Equity Firms LENDER SERVICES POST TRANSACTION SERVICES

3 TRANSACTION ADVISORY SERVICES (SHP) transactional experience in the healthcare field adds enormous value in the decision process at those key moments when the correct application of due diligence principles ultimately defines organizational success or failure. Whether SHP provides a turnkey due diligence solution to a proposed acquisition or supports an ongoing transaction through advisory services such as deal point negotiation or calculation of final net working capital settlement, our operational depth and financial understanding bring critical insights few firms will match. SCOPE OF SERVICES STRATEGIC PLANNING: SHP will initiate strategic planning to define the best long-term alternative for your organization. BOARD GUIDANCE: We can provide the Board with guidance to ensure your organization receives fair value for the entity. ACQUISITION CANDIDATES: Our firm can assist with the identification and evaluation of merger or affiliation candidates. PNWC AND FNWC CALCULATION: Our CPA s have the expertise to calculate the Preliminary and Final Net Working Capital through settlement. To date, we have successfully completed this element of each transaction with no material adjustments, arbitration, or litigation. CONTRACT REVIEW: Review contracts being assumed in the transaction to provide guidance to either the buyer or the seller. OPENING BALANCE SHEET(S): Our CPA s can develop the Opening Balance Sheet(s) for all entities acquired. INTERNAL CONTROL REVIEWS: Perform Internal Control reviews especially in light of Sarbanes Oxley legislation. OPERATIONAL REVIEWS: Departmental and Management reviews to guide the buyers in their acquisitions. INTEGRATION: With our experience gained by managing over 135 transactions, we are able to perform operational and financial integration of the acquisition International Drive, Suite 140 / 150 Franklin, TN Kenneth P. Doran, CPA President and CEO Cell Phone: (615) kdoran@spectrumhpllc.com Will Moore, CPA, CIRA, FHFMA Partner Cell Phone: (512) wmoore@spectrumhpllc.com Iain C.W. Briggs, ACA Cell Phone: (615) ibriggs@spectrumhpllc.com Mark Hartman, CPA, FHFMA Cell Phone: (501) mhartman@spectrumhpllc.com

4 TURNAROUND & RESTRUCTURING The stated goal of all healthcare organizations is to improve the financial performance of the entity and simultaneously increase the quality of patient care. After all, the patient is the primary reason that healthcare exists. Increasing the quality of patient care cannot be achieved without the organization first achieving financial success. Unfortunately in these challenging times, improving the financial performance of the entity sometimes becomes a dream and not the reality. Pressure from Federal/State governments, reduced reimbursements from third party payers, pressure from the medical staff, an aging physical plant, reduced patient census, and an obsolete Information System, only to name a few, can all be factors which lead to the poor financial performance of an entity. Poor financial performance yields low quality patient care and ultimately a distressed healthcare entity. (SHP) is differentiated as an organization through not only the quality of its collective experience and fundamental knowledge of the healthcare industry, but through the proven capabilities of its professionals to successfully execute intense change management. SHP Partners, s, and Senior Advisors are true restructuring professionals accustomed to providing direction and asserting control in the midst of radically adverse managerial circumstances. Whether SHP professionals are helping a troubled organization strategically assess its potential capacity to formally reorganize or driving an operating turnaround through a management team in charge of daily operations, SHP s main focus remains the building of value for your organization stakeholders. SHP s financial restructuring, turnaround and bankruptcy services focus on restoring financially distressed hospitals to a position of financial strength. Our process is designed to quickly stabilize your entity in the short term while repositioning it for long-term success. If designed correctly, restructuring, turnaround and bankruptcy services are uncomplicated and very effective. The results of the restructuring/turnaround/bankruptcy will position it for success far into the future International Drive, Suite 140 / 150 Franklin, TN Kenneth P. Doran, CPA President and CEO Cell Phone: (615) kdoran@spectrumhpllc.com Will Moore, CPA, CIRA, FHFMA Partner Cell Phone: (512) wmoore@spectrumhpllc.com Iain C.W. Briggs, ACA Cell Phone: (615) ibriggs@spectrumhpllc.com Mark Hartman, CPA, FHFMA Cell Phone: (501) mhartman@spectrumhpllc.com

5 PERFORMANCE IMPROVEMENT (SHP) routinely works improving operational and competitive competencies within healthcare organizations. Implementation of identified initiatives occurs collaboratively, emphasizing management participation, and is constantly mindful of organizational mission and priorities. Leveraging administrative and physician direction through steering committees and task forces, the Financial and Operational Assessments for Performance Improvement model focuses on accomplishment of a patient care delivery model redesign capable of maintaining and growing market share as it responds to the economic and reform related pressures of our ever changing healthcare environment. SHP s access to levels of experience and competitive information allows us to add significant value through the development of customized operating metrics and benchmarking analyses. While most healthcare organizations struggle to operate against a changing backdrop of healthcare with reimbursement, technology, and other external forces in flux, SHP can help guide them toward greater efficiency. STRATEGIC ASSESSMENT AND DIRECTION: Our firm will assess your organization s current strategic position and outline steps to strategically reposition it to achieve greater potential, through a comprehensive evaluation of service delivery, quality focus, physician management, technology, and capital. PHYSICIAN ALIGNMENT AND GROWTH INITIATIVES: SHP has the necessary resources to evaluate and address physician development and kick off initiatives of an accretive nature to organizational profitability. Our multi-disciplinary focus on managing clinical and financial imperatives is a critical element to achieve operational success in these areas. NET REVENUE PERFORMANCE GUIDANCE: Many healthcare organizations are not able to allocate the time needed to appropriately review their policies and procedures, processes, charge description master, charge capture, technology utilization, and the overall Revenue Cycle. SHP s extensive review processes identify in detail those areas, which normally create net revenue improvements. EXPENSE EFFICIENCY AND IMPROVEMENT: Our expertise in reviewing and refining labor productivity while at the same time assessing the non-salary portion of operations, has routinely led our clients to improved performance International Drive, Suite 140 /150 Franklin, TN Kenneth P. Doran, CPA President and CEO Cell Phone: (615) kdoran@spectrumhpllc.com Will Moore, CPA, CIRA, FHFMA Partner Cell Phone: (512) wmoore@spectrumhpllc.com Iain C.W. Briggs, ACA Cell Phone: (615) ibriggs@spectrumhpllc.com Mark Hartman, CPA, FHFMA Cell Phone: (501) mhartman@spectrumhpllc.com

6 INTERIM & CRISIS MANAGEMENT Every organization at some point is faced with the loss of a key management resource. Voluntary or involuntary termination, retirement, promotion, or long-term illness can result in an organization scrambling to fill important gaps in their management structure. When it becomes necessary to temporarily fill an important management position on an interim basis, can step in while the search for a permanent replacement is completed. (SHP) collective managerial experience spans more than 150 different health care organizations. Our firm represents a level of seasoned executive talent accustomed to assuming wide functional responsibilities in key management roles of organizations on a regular basis. In addition to our broad capabilities in providing daily line management, we have the capability of supplementing existing management through mentoring of operations, coordination of board functions, or strategic advisory services. has developed an extensive network of highly skilled executives who can assume roles critical to the continued short-term and long-term success of the organization. SHP possesses significant resources in the following positions: CHIEF EXECUTIVE OFFICERS CHIEF OPERATING OFFICERS CHIEF FINANCIAL OFFICERS CHIEF NURSING OFFICERS CHIEF HUMAN RESOURCE CONTROLLERS REVENUE CYCLE MANAGERS REIMBURSEMENT SPECIALISTS COMPLIANCE SPECIALISTS Interim & Crisis Management Services are designed to be transparent to the organization. Our contracts are flexible with 30 day out clause language which provides flexibility to our clients International Drive, Suite 140 / 150 Franklin, TN Kenneth P. Doran, CPA President and CEO Cell Phone: (615) kdoran@spectrumhpllc.com Will Moore, CPA, CIRA, FHFMA Partner Cell Phone: (512) wmoore@spectrumhpllc.com Iain C.W. Briggs, ACA Cell Phone: (615) ibriggs@spectrumhpllc.com Mark Hartman, CPA, FHFMA Cell Phone: (501) mhartman@spectrumhpllc.com

7 LENDER SERVICES (SHP) specializes in helping health systems/ hospitals that have experienced bond downgrades and covenant violations. Working to balance the interests of the organization and its lenders, SHP provides objective, independent advisory services to solve complex operational, financial and strategic issues. The objective of these engagements is to identify a path to improve financial performance and restore compliance with the bond covenants. We tailor our scope of services to each particular situation. SCOPE OF SERVICES PHYSICIAN RELATIONS: Assess physician relations and the impact that physician behavior has on the organization s financial performance. QUALITY REVIEW: Compare quality measures with regional and national norms. FINANCIAL REVIEW: Review the financial trends and evaluate the credibility and timeliness of financial reporting. OPERATING PERFORMANCE: May include Revenue Cycle, Labor/ Productivity, Non Labor (including supply chain) and Clinical Effectiveness (Case Management, Clinical Resource Management and Patient Throughput). STRATEGIC SNAPSHOT: High level review of competitive market position, portfolio of services and the current strategic plan. VIABILITY STUDY: High level evaluation of long-term viability which takes into account the strategic snapshot (see above), projected operating performance, balance sheet and projected capital needs and debt capacity (and may include evaluation of review of strategic partnership options). GOVERNANCE AND ORGANIZATIONAL STRUCTURE: Review the organizational structure and identify opportunities to improve organizational efficiency and information flow (may include reviews of governance structure and/or management span of control) International Drive, Suite 140 / 150 Franklin, TN Kenneth P. Doran, CPA President and CEO Cell Phone: (615) kdoran@spectrumhpllc.com Will Moore, CPA, CIRA, FHFMA Partner Cell Phone: (512) wmoore@spectrumhpllc.com Iain C.W. Briggs, ACA Cell Phone: (615) ibriggs@spectrumhpllc.com Mark Hartman, CPA, FHFMA Cell Phone: (501) mhartman@spectrumhpllc.com The deliverable will typically include an EBIDA/Cashflow Improvement Plan and Financial Projections (including five-year pro forma balance sheet, income statement, statement of change in net assets, cash flow statement, that show the financial impact of improvements).

8 POST TRANSACTION SERVICES The business of healthcare management is becoming more challenging on a daily basis. (SHP) is well positioned to assist Boards, Legal Counsel, and Foundations navigate the multitude of objectives that must be accomplished in a sale, wind down, or closure situation. Our experience in wind down transition or closure results in a substantially higher recoveryry for our clients. The scope of services that we can offer varies depending on the individual enterprises situation. We customize a plan that meets the needs of the client. SCOPE OF SERVICES PROVIDE overall management of administrative components as necessary to maximize financial recovery and render efficientficient closure of the case, addressing critical functions as necessary such as accounting, business office, cash management, insurance, Health Information Management, plant operations, and security. PREPARE and maintain a detailed work plan of overall wind down project management activities to assess and monitor progress related to this end. EVALUATE the real assets and equipment, and execute related sales of such assets, with particular emphasis towards understanding alternate use and an enhanced market value in final sale. MANAGE Accounts Receivable collection processes with the intention of maximizing total collectible value at lowest overall cost (including final cost report settlements). MONITOR and oversee all necessary points of regulatory compliance with respect to appropriateness of transition of medical delivery services and related record retention. BE AVAILABLE to be deposed by other constituent s counsel in the case if required. BE AVAILABLE to testify in Bankruptcy Court if required. FIRM OBSERVATIONS. We have seen millions of dollars left on the table by sellers. 's Post Transaction Services typically generate a minimum of 3x ROI International Drive, Suite 140 / 150 Franklin, TN Kenneth P. Doran, CPA President and CEO Cell Phone: (615) kdoran@spectrumhpllc.com Will Moore, CPA, CIRA, FHFMA Partner Cell Phone: (512) wmoore@spectrumhpllc.com Iain C.W. Briggs, ACA Cell Phone: (615) ibriggs@spectrumhpllc.com Mark Hartman, CPA, FHFMA Cell Phone: (501) mhartman@spectrumhpllc.com

9 MEET OUR PEOPLE

10 Ken presents insights from over thirty (30) years of experience in a variety of challenging operating and financial roles in the public accounting and healthcare sector. His experience ranges from organizational restructuring to managing organizations experiencing rapid start-up growth. Since 2001, Ken has managed Due Diligence through Final Net Working Capital (FNWC) Settlements on over one hundred and thirty (130) healthcare transactions. In addition, he has regularly served as the Interim CEO and CFO of healthcare clients. With more than two decades of senior management experience in key financial roles in operating companies, Ken possesses the broad technical, managerial, and strategic skill sets required to quickly assess and provide pivotal guidance in any managerial situation. Diverse exposure to different elements of healthcare, primarily in the acute care hospital and long-term care institutional pharmacy settings allows him a rapid level of understanding when assessing larger, more complex environments such as integrated delivery systems and publicly traded companies. As the President and CEO of, Ken is responsible for the firm s management, which includes sales/marketing, engagement management, accounting, and information technologies. KENNETH P. DORAN, CPA PRESIDENT AND CEO Cell Phone: (615) kdoran@spectrumhpllc.com PRIOR EXPERIENCE Ken began his career with the public accounting firm of Deloitte & Touche before moving to progressive managerial roles in acute care hospital and long-term care institutional pharmacy settings. EDUCATION/AFFILIATIONS Ken received a Bachelor s degree in Business Administration (BBA) from the University of Cincinnati, where he was a member of the Co-Op Professional Practice Program. He is a member of his State Society of CPA s and a member of the Healthcare Financial Management Association (HFMA). SELECTED ADVISORY EXPERIENCE Due Diligence Reviews Turnaround Management Crisis Management Interim Management Operations Management Financial Forecasting Cash Management INDUSTRY EXPERIENCE Acute Healthcare Pharmacy, Institutional Long Term Care Pharmacy Home Health Drug and Alcohol Rehabilitation Companies Real Estate Investment Trust s (REIT s) TRANSACTION ADVISORY SERVICES EXPERIENCE Transactional support of due diligence, working capital settlements, unfavorable contract reviews, and purchase accounting support for one hundred and thirty (130) distinct transactions with a combined market value in excess of $9.5B Successful in finalizing all purchase/sale transactions without any material adjustments to Final Net Working Capital Successful in finalizing all purchase/sale transactions without arbitration or legal proceedings related to Final Net Working Capital Assisted clients completing purchase transaction with integration and interim management in interim CEO/CFO roles Completed due diligence for a major Academic Medical Center ( AMC ) in their quest to purchase a large multi-specialty group practice Completed due diligence for a Real Estate Investment Trust ( REIT ) in their successful acquisition of real estate, building and equipment of a 3-year old hospital asset located in Austin, TX RESTRUCTURING, TURNAROUND AND BANKRUPTCY MANAGEMENT Financial and operational restructuring of a privately held healthcare staffing company based in Ohio generat ing a turnaround culminating in a $150M sale to a large public nurse staffing company. Served as a financial advisor to restructuring professionals in defining turnaround strategy and operating initiatives for a large acute care teaching facility in the mid-south. CEO/CFO & OPERATIONS IMPROVEMENT Recently served as the Interim CEO of a large Not-For-Profit Hospital based in Nevada. Worked diligently to complete Shared Services/Purchased Services Arrangements with the parent company Leadership of all financial functions of a private long term care institutional pharmacy, tripling net revenue in less than 3 years through internal growth and acquisitions Served as the East Coast Regional Chief Financial Officer for a large public long-term care institutional pharmacy successfully integrating seven (7) acquisitions into a single region PERMANENT AND INTERIM CEO/CFO/COO Served as the Interim CEO of a surgical hospital that was part of a large health system. Role was expanded from 3 months to 12 months and involved a transaction of the 30% physician ownership interest General Manager and Chief Financial Officer of the largest office of a national home care/home infusion company provider based in Chicago, actively managing two divisional operations and 125 FTEs Permanent CFO/COO of acute care hospitals and long-term care pharmacies. Recent experience has focused PUBLIC COMPANY EXPERIENCE Assisted private company with filing Initial Public Offering ( IPO ) in Q4 of 14. Worked diligently with the company s General Counsel, outside legal counsel and underwriters to complete all elements of the S-1. Engagement resulted in a very successful IPO filing in October Priced at $15, opened at $20 and currently trading in mid to upper 30 s

11 Will has over 25 years of experience working with hospitals and hospital systems primarily in the notfor-profit sector and is based in Austin, TX. He has an extensive background in hospital operations on the Chief Financial Officer level. As a senior executive of more than two dozen hospitals or hospital systems, Will has been involved with a wide variety of medical staffs and boards, often providing crisis management in the most difficult of circumstances. Through his broad exposure to issues of healthcare finance, he has developed a keen ability to quickly adapt, interpret, and assume the lead in management situations requiring strengths with financial operations, strategic assessment, financial modeling, systems development, and capital planning. Prior to involvement with, Will worked with nationally recognized consulting firms in the areas of corporate restructuring and managed care. This experience involved operational and financial assessment, feasibility and modeling, and interim management of various healthcare organizations. WILL MOORE, CPA, CIRA, FHFMA PARTNER Cell Phone: (512) wmoore@spectrumhpllc.com PRIOR EXPERIENCE Will began his career in a variety of financial management capacities for acute care healthcare facilities, with responsibilities spanning financial operations, reimbursement and financial planning, and information system development. EDUCATION/AFFILIATIONS Will obtained his Bachelors of Arts in Accounting from The University of Kentucky and holds a Masters of Business Administration from Vanderbilt University s Owen Graduate School of Management. Will is a Certified Public Accountant, a Certified Insolvency Restructuring Advisor, and a Fellow in Healthcare Financial Management Association (HFMA). In 2005, he was awarded the Follmer Bronze award from HFMA in recognition of his distinguished service in the area of healthcare finance. SELECTED ADVISORY EXPERIENCE Turnaround Management Crisis Management Interim Management Operations Management Due Diligence Financial Forecasting Bankruptcy Advisory Cash Management TRANSACTION ADVISORY SERVICES EXPERIENCE Transactional and due diligence support of successful $33.5M nursing home sale involving 403 licensed beds. Integration support to 70 licensed bed hospital acquisition from for-profit proprietary system to freestanding governmental entity. Transition responsibilities included transaction settlement, cash management/ accounting reorientation and IT systems development. RESTRUCTURING, TURNAROUND AND BANKRUPTCY MANAGEMENT Engineered $12M+ turnaround of financial operations to a 257 licensed bed safety net teaching hospital including radical improvement of reimbursement through clinical documentation improvement and related case mix, new program development, and operating expense controls. Revenue cycle was rebuilt through IT system redesign, resulting in significant stability of days cash on hand. Turnaround of financial operations in a freestanding community 234 licensed bed hospital including accounts receivable restructuring, radical improvement of days cash on hand, and successful defense of facility bond rating. Operational restructuring of troubled 116 licensed bed hospital facility through staff reductions, non-salary expense controls, and business office redesign. Bond compliance was successfully reestablished and successful facility merger eventually executed. CEO/CFO & OPERATIONS IMPROVEMENT Interim Chief Financial Officer and Corporate Controller for 900+ licensed bed four-hospital Chapter 11 bankruptcy case. Fiscal management responsibilities including accounting and financial reporting, cash management, and operating and capital budgeting, third party reimbursement, tax functions and compliance. Interim Chief Financial Officer of 420 licensed bed for-profit hospital with significant operating losses eventually stabilized through labor management and non-salary reductions to breakeven EBITDA. Interim Chief Financial Officer of 305 licensed bed community hospital with IT issues surrounding general ledger and business office implementations. Led successful redesign of both modules to implement financial reporting and strengthen days cash on hand. SELECTED ADVISORY EXPERIENCE Assistant to Bankruptcy Court Appointed Examiner in assessment of operating quality and management efficiency for 400+ long term care facilities for-profit chain. Interim Treasury Management for 50 long term care facilities undergoing successful reorganization under Chapter 11 proceedings.

12 Iain brings over 30 years of experience in senior management, turnaround management, financial restructuring and mergers and acquisitions, with the last sixteen in the healthcare industry. He was most recently co-head of FTI s Healthcare Restructuring and Interim Management practice and a principal at Cambio Health Solutions that lead a management buyout and subsequent sale to FTI. His areas of specialty include bankruptcy reorganizations, business development, strategic planning, and operational improve- ment and creditor relations. He works closely with hospital and health system boards, executive manage- ment and the municipal finance community. Iain has served as a chief executive officer (CEO) and a chief financial officer (CFO) and has acted as an advisor on turnaround projects. He has worked on the sale, merger or reorganization of numerous healthcare providers (mostly acute care and specialty hospitals). In all cases, EBITDA improvement or recovery has exceeded expectations. Iain holds a B.S. in mechanical engineering and is a chartered accountant (ACA). He is frequently invited to speak at Healthcare Financial Management Association, the National Federation of Municipal Analysts and other healthcare finance gatherings. IAIN C.W. BRIGGS, ACA PRINCIPAL Cell Phone: (615) Office Phone: (615) ibriggs@spectrumhpllc.com PRIOR EXPERIENCE Directed financial, legal and human resource functions for a $25MM, 180 person, full-service direct marketing agency. Clients included AT&T, American Express, MBNA and TheAssociates Financial Services. KEY ACHIEVEMENTS Provided mergers and acquisition support for a $250MM marketing services group (advertising, sales promotion, marketing communication, direct mail, printing, design and, production). Provided management and financial consulting services for a big-six accounting firm. Assisted clients on systems design, development and managing implementation. PROFESSIONAL HISTORY Iain joined FTI in 2005 with its acquisition of Cambio Health Solutions, where he had worked for eight years. He previously served as a senior manager for Deloitte & Touche, where he provided a broad range of merger and acquisition, turnaround and restructuring advisory services focusing on operational and financial improvement. SELECTED ADVISORY EXPERIENCE Strategic Advisor to a Specialty Rehab Hospital. Proceeds were double initial estimates. Strategic Advisor to insolvent community hospital. Sale concluded and community foundation funded with proceeds. Financial and strategic advisor to numerous community hospitals that were in breach of bond covenants. Usually includes evaluation of strategic options. Led numerous operational and strategic consulting engagements for client hospitals. Developed an expansive network of the principal healthcare lenders, including bond insurers, taxexempt and municipal bond fund managers, asset-based lenders and commercial banks. Developed incentivized compensation models for clients, including developing pro forma EBIDA improvement plans and financial projections. CEO of a provider owned health plan through Chapter 11 bankruptcy, including the formulation of a liquidating reorganization plan and extensive negotiation with creditors; achieved 83% payment to unsecured creditors. Managed the run-off for 20,000 member, $30MM health plan (include Medicare, Medicaid and commercial membership). Supervised audit services for client companies including Lloyd's of London, Mazda Cars (UK) Ltd., Hungarian International Bank Ltd., Clarks Shoes Ltd., RTZ plc, Chemring plc, BET plc, Vantona Viyella plc, Time Products plc and McCormick Spice, Inc. EDUCATION B.S. in Mechanical Engineering (2.1 - equivalent Cum Laude), University of Nottingham, England, Chartered Accountant (CPA/MBA equivalent), while working at Deloitte & Touche, 1985

13 Mark has over 25 years of experience in the healthcare industry He brings with him an extensive executive background in providing senior management leadership in various healthcare organizations, financial restructuring along with merger and acquisition due diligence. Prior to joining SHP, Mark worked in various senior management positions within the MedCath, Inc. Hospital System. MARK A. HARTMAN, CPA, FHFMA PRINCIPAL Cell Phone: (501) EDUCATION/ AFFILIATIONS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS HEALTHCARE FINANCIAL MANAGE- MENT ASSOCIATION -Fellowship Status -Arkansas Chapter Past President -Gold Merit Award -Founders Medal of Honor Recipient SELECTED ADVISORY EXPERIENCE Worked with Med-Cath team in selling its interest in the hospital company Worked with AR-MED in purchasing 70% ownership in an individual hospital Negotiated debt agreement for a fully leveraged buyout of hospital as well as the purchase of a 17 physician cardiology practice Lead the financial operations of merging a hospital and cardiology practice Implemented changing the cardiology practice to a provider-based office and adding two more provider-based offices Implemented contracts for a primary source vendor on major supply items Lead change in operations (business office and case management) regarding determination of patient status Implemented review process of all Medicare patient status by a third party physician reviewer Lead roll out of documentation improvement effort at ten hospitals, resulting in an improvement average of more than $500,000 per hospital annually at 12 hospitals Implemented the rollout of a productivity system companywide to improve efficiency in staffing and reduce salary, wages and benefits CEO/CFO & OPERATIONS Served as an Interim CEO and CFO with large healthcare providers along with other various facilities Worked with facility CFOs and CEOs to improve financial operations of facilities in the areas of revenue cycle, managed care contracting, materials management, productivity, case management and clinical documentation improvement ASSISTING FACILITY CEO'S WITH THE TECHNICAL OVERSIGHTS OF THE FACILITY Monitoring daily reports to determine proper allocation of resources to obtain maximum improvement in operations of hospitals Leadership for various departments of accounting, business office, materials management, medical records and information systems Provide analysis of financial statements to corporate leadership, hospital executives, hospital team leaders and physician investors as well as make recommendations for improvements KNIGHTS OF COLUMBUS AMERICAN HEART ASSOCIATION -Central Arkansas Chapter Board Member ARKANSAS BUSINESS CFO OF THE YEAR 2012 LARGE PRIVATE COMPANY

14 Phil has over thirty (30) years of experience in healthcare finance and operations. His background includes hospital finance as an auditor for Blue Cross & Blue Shield, a reimbursement specialist for AMI/Tenet, and a hospital CFO. The majority of Phil s career has been in hospital operations as a Hospital President/CEO in the AMI/Tenet healthcare system. During the past ten years, he has served as interim President/CEO of various hospitals. Phil has extensive experience with corporate structure, hospital boards, medical staff, community and employee relations. He has been involved in several strategic and financial turnaround situations. INTERIM HOSPITAL OPERATIONS Served as Interim President/CEO of various hospitals, including community, faith based and proprietary systems. Responsible for organizations ranging from 50 bed specialty hospitals to 600+ bed multi-facility medical centers. Involved in successful turnaround situations, going from annual operating losses to profitable organizations. Successfully stabilized medical staff and employee relations during leadership transition. PHIL SHAW PRINCIPAL Cell Phone: (404) pshaw@spectrumhpllc.com EDUCATION / AFFILIATIONS Phil obtained his Bachelor's degree in Business from the University of Tennessee and attended AMI's Corporate College for Healthcare executives. Phil has served on the Boards of the Federation of American Hospitals and the Georgia Hospital Association. He was an Education Specialist in the United States Air Force. HOSPITAL OPERATIONS Served as President/CEO in acute care hospitals. A significant achievement of his career was the successful conversion of communitymunity hospitals to the private sector, improving the quality of care and the financial status of those institutions. Provided growth in medical services through successful approvals of certificate of needs. Created growth of hospital services and financial success through medical staff development, including recruitment and integration programs. Provided leadership in the construction and opening of a replacement facility for a 160 bed acute hospital. HOSPITAL FINANCE Served as a Medicare/Medicaidcaid auditor with Blue Cross/Blue Shield of Tennessee. Responsible for assuring appropriate reimbursemntmnt for these programs and healthcare facilities. Reimbursement accountant for AMI/Tenet. Prepared costs reports and financial accounting for government programs. Served as CFO in a full serviceses acute care hospital. Responsible for business office functions, budgets, FTE controls, cash flow, and day-to-day accounting functions.

15 Tim is a in. Based out of Ocala, Florida, he has over thirty-five (35) years of diverse leadership experience in healthcare administration, operations and finance. Tim has extensive experience with for-profit and non-profit hospitals, health systems and a large multi-specialty group practice leading organizations at the CEO, COO and CFO level. Over the past fifteen (15) years, Tim has directed hospitals as CEO ranging in size and complexity from a 60-bed start-up facility to a 744-bed tertiary referral center. The depth of his progressive experience affords invaluable perspective into strategic and operating challenges from a consulting standpoint. INTERIM HOSPITAL OPERATIONS Served as Interim CEO for various hospitals which included community, public and proprietary health systems Responsible for organizations ranging from 50-bed sole community hospital to 744-bed tertiary care facility with a medical staff or 400+ physicians Successfully stabilized medical staff and employee relations during leadership turnaround Organized effective financial turnaround initiatives TIM MENTON, FACHE PRINCIPAL Cell Phone: (352) tmenton@spectrumhpllc.com EDUCATION / AFFILIATIONS Tim obtained his Bachelors of Science in Accounting from Florida State University and holds a Masters in Business Administration (MBA) from Florida Atlantic University. Tim is a Fellow in the American College of Healthcare Executives (ACHE) and served on the Board for the Central Florida Chapter. Tim is also active in the health care communities at the Federal and State level focused on developing health care policy. HOSPITAL OPERATIONS Worked in conjunction with hospital boards and medical staffs, achievements include accreditation of a Comprehensive Cancer Center, established dedicated Children's Hospital, Level I Trauma Center and Liver Transplant Program Improved financial operations and quality outcomes and expanded clinical services and market share Successfully managed several major hospital construction and renovation projects ranging in size up to over $160 million Hospitals managed recognized as Top 100 Hospitals nationally HOSPITAL FINANCE Served in financial leadership positions in various hospital facilities with responsibilities for revenue cycle, budgeting and cash flow Designed, implemented and monitored effectiveness of financial reporting systems Expanded leadership responsibilities deeper into operating and executive capacities Tennessee CPA certificate (inactive)

16 "providing the full spectrum of healthcare consulting" August International Drive, Suite 140 / 150 Franklin, Tennessee Office: