Results Delivered!

Background

HealthSpan Solutions has been serving the healthcare community since 1999. Our focus has been to deliver solutions that impact financial return and reduce expense cost rapidly.

Through our consultants and our Preferred Partner Network (PPN) we are able to deliver the right solution, at the right time, at the right cost for our clients.

James K. Lawrence

CEO/Founder

Our Client Mission HealthSpan is dedicated to providing healthcare

with the best in systems and services available through it’s Preferred Partnership Network.

Our goal is to eliminate the time consuming, and most often frustrating process of evaluating vendor service offerings for complex system and large scale services applications within your institution.

HealthSpan focuses on services and systems that will impact your financial and operational well being that provides a strategy for success.

When you partner with HealthSpan Solutions, you gain the value and experience of our network of companies that are second to none in the healthcare industry. HealthSpan provides you with the support and confidence you need to create winning results within your organization.

A productive and efficient organization is the result of individuals working together toward common objectives. The planning process and strategic goals implemented within your institution require teamwork internally and externally to accomplish your goals.

HealthSpan delivers that TEAMWORK APPROACH.

Our mission is to provide you with the tools and talent needed as well as a committed focus to achieve your goals.

That’s VALUE, and that is…

Why HealthSpan?

Enterprise Wide

Provider Needs

Preferred Partnership Network

of Services

HealthSpanSolutions

Our Delivery

Hospital

CEO

CFOCIO

VP Purchasing

VP Nursing

Chief of Staff

Our Audience

ServicesA selection of offerings by our Preferred Partner Network and HealthSpan Solutions

Areas of Expertise:• Materials Management Contracts Monitoring and Compliance Audit with Implementation and Execution• Patient Access, Registration and Scheduling • Utilization and Case Management • Credentialing and Financial Enrollment Services • Revenue Cycle Information Technology and Vendor Management • Database Integrity (CDM, Order Entry, Pharmacy Formulary and Supply Item Master) • Supply Chain and Pharmacy Optimization Management • Patient Financial Services and Business Office Management • Grant Funding, County Subsidies, IGT, UPL and Uncompensated Care • Accounts Receivable Outsourcing• Accounts Receivable Debt Purchase

Business Process Improvement

Strategic Planning Revenue Optimization Regulatory Compliance Coding Review Cash Acceleration Training ProForma Self-pay

Management Program

REVENUE Contract Unitization Contract Compliance Vendor Performance

& Management Non-Salary Expense

Reduction New Construction

Project Oversight On-sight

Management

EXPENSE CHAIN

HR Audit/Assessment Human Capital Audit Human Resources

Solutions Recruiting or

Relocation Programs

RESOURCES

Outsourced Contracts Risk Management

Business Process Outsourcing

Coding Outsourcing

OUTSOURCING

Our services and methods have been developed on thousands of engagements.

ProFormaHealthSpan’s Proprietary Technology

Charity Validation & Payment Indicators

RevXcel Data Flow Process

Patient Accounting System

Patient Information is gatheredusing demographic and creditdata sources

Data includes: Income Estimation Address Validation Asset Indicators Credit and Recovery Data

Accounts are then sorted intothe following classifications: Charity Write Off Validation Bad Debt Write Off Financial Assistance Self Pay Collections

Accounts transfer toThe RevXcel Engine

Financial

Demographic

Skip Tracing

Authentication

RevXcel Engine

Self Pay Collections

Self Pay Accounts arePlaced in WorkflowProcess based on probability to pay

calculations

Self Pay Accounts areCollected or Closed Out

ProForma

ProForma Data Flow Process

ProForma Data

ProForma Engine

Patient

Patient Data is Uploaded into

RevXcel Engine

RevXcelDatabase

RevXcel uses the data toCalculate and Validate the account information

and classification

Experian DatabaseCredit and

Demographic

Accounts are processed by

Experian

RevXcel Workflow Process

Accounts are processed and categorized as follows

Charity Write Off

Financial Assistance

Bad Debt Write Off

Charity Write Off

Financial Assistance

Bad Debt Write Off

Data is returnedTo RevXcel Engine

ProForma Work Flow Process

ProForma Data

ProForma Engine

ProForma uses the data to calculate and validate the account information and

classification

ProForma Data Returned

Patient

Patient Data is Uploaded into

RevXcel Engine

RevXcelDatabase The RevXcel Calculation

Engine uses the number of dependants and annual Income

In order to determine Charity Validation

Experian DatabaseCredit and

Demographic

Data is GatheredFrom Experian

INCOME

If # of Dependents is lessthan 3 and Estimated HHI

Is less than $25,000 Of # of Dependents areLess than 3 and MonthlyObligations are greater

Than $1,500

RevXcel Charity Validation Calculations

QUALIFIESDISQUALIFIES

MED HOUSEVALUE

MORTGAGEMONTHLY

OBLIGATIONSCREDIT

AVAILABLE

If # of Dependents is morethan 3 but less than 4 and

Estimated HHIIs less than $25,000

If # of Dependents is morethan 4 and Estimated HHI

Is less than $32,000

Of # of Dependents aremore than 3 but lessthan 4 and Monthly

Obligations are greaterThan $1,850

Of # of Dependents aregreater than 4 and

Monthly Obligations aregreater than $2,250

If Mortgage was greater than $120.000

If the Medium Housing Value is

greater than $140,000

If the Available Bankcard Credit is greater than $3,000

ProForma Charity Validation Calculations

ProForma Data

ProForma Engine ProForma

Calculations

ProForma- Charity Validation Form

Patient Name: Date: 01/22/2007Account #: SSN: 123456789

Balance:

Income Estimation: $23,749 Estimated Dependents: 2.8Estimated Home Value: $30,780 Estimated Assistance Category: 100

Credit Recovery Score: 556 Available Bankcard Credit: $0Sum of Monthly Pymnts: $0 Number of Derogatory Trades: 11

Mortgage High Credit: $0 Second Mortgage High Credit: N/AMortgage Balance: $0 Second Mortgage Balance: N/A

Bankruptcy Date Filed: N/A Bankruptcy Chapter Filed:

Chapter 7 NDeceased Indication: N Chapter 11 N

Chapter 13 NEmployer Name: 0

Financial Assistance Probability: 100%

Charity Validation Form

Patient InformationSMITH, JOHN

3807054

$1,546.85

Patient Demographic Estimates

The information contained in this section is not intended to be factually representative of this particular patient

and should not be used solely to determine financial assistance qualification.

Factual Credit Based Findings

Recommended Probability of Financial Assistance Approval

Patient

Patient Data is Uploaded into

RevXcel Engine

RevXcelDatabase The RevXcel Calculation

Engine establishes a percentagefactor multiplied against thePatient’s Estimated Income,

Available Credit and MortgageEquity in order to determine

the Maximum Payment

Experian DatabaseCredit and

Demographic

Data is GatheredFrom Experian

INCOMEAvailable

CreditMortgageEquity+ +

If Income is less than $39,000 then 8% factor

If Income range is from $39,000 to $56,000

then 15% factor

If Income range is from $56,000 to $78,000

then 25% factor

If Income is more than$78,000 then 33% factor

The PercentageOf Income ThatDetermines A

Patient’s MaximumLiability

If Available Credit is more than $1,000 but less than

$5,000 then 3% factor

If Available Credit is more than $5,000 but less than

$10,000 then 7% factor

If Available Credit is morethan $35,000 then 22% factor

=

If Mortgage Equity is more than $500 but less than $5,000 then 3% factor

If the Mortgage Equity is more than $5,000 but less than$10,000 then 6% Factor

If the Mortgage Equityis more than $100,000

then 33% Factor

If Available Credit is more than $10,000 but less than

$20,000 then 10% factor

If Available Credit is more than $20,000 but less than

$35,000 then 15% factor

If the Mortgage Equity is more than $10,000 but less than$25,000 then 10% Factor

If the Mortgage Equity is more than $25,000 but less than$50,000 then 15% Factor

If the Mortgage Equity is more than $50,000 but less than$100,000 then 22% Factor

RevXcel Financial Assistance CalculationsProForma Financial Assistance Calculations

ProForma Data

ProForma Engine ProForma

Calculations

Patient Name: Date: 01/22/2007Account #: SSN: 456345678

Balance:

Income Estimation: $189,102 Estimated Dependents: 2.54Estimated Home Value: $708,831 Estimated Assistance Category: 100

Credit Recovery Score: 800 Available Bankcard Credit: $151,291Sum of Monthly Pymnts: $1,808 Number of Derogatory Trades: 5

Mortgage High Credit: $482,000 Estimated Mortgage Equity $226,831Mortgage Balance: $482,000 Medium Housing Values $708,831

Income Factor: 33%Bankcard Factor: 22%Mortgage Factor: 30%

Total Factor 85%

Maximum Payment 160,737$

Financial Assistance Evaluation Form

Patient InformationSMITH, JOESEPH

16048150$277.79

Patient Demographic Estimates

The information contained in this section is not intended to be factually representative of this particular patient

and should not be used solely to determine financial assistance qualification.

Factual Credit Based Findings

Recommended Probability of Financial Assistance Approval

ProForma Financial Assistance Evaluation

Form

Patient

Patient Data is Uploaded into

RevXcel Engine

RevXcelDatabase The RevXcel Calculation

Engine enhances Experian’sCredit Scores by factoring

variables from the followingattributes in order tocalculate the Priority

Payment Indicators (PPI)

Experian DatabaseCredit and

Demographic

Data is GatheredFrom Experian

Mortgage EquityCalculation

DerogatoryCalculation

Available CreditCalculation+ +

If Mortgage Equity ismore than $45,000

the factor is 75

PPI is the adjusted score that is calculated by adding the sum of the attributes to the

base score from Experian

If the # of DG’s are morethan 36 the factor is (-100)

=

If Available Credit is morethan $10,000 the factor is 100

If Mortgage Equity ismore than $10,000 butless than $45,000 the

factor is 50

If Mortgage Equity ismore than $2,000 butless than $10,000 the

factor is 25

If the # of DG’s are equal to 0 or 1 then the

factor is 40

If the # of DG’s are more than 6 but less than 20

the factor is (25)

If the # of DG’s are more than 20 but less than 25

the factor is (40)

If the # of DG’s are more than 25 but less than 36

the factor is (65)

If Available Credit is more than $5,000 but less than $10,000

the factor is 65

If Available Credit is more than $2,500 but less than $5,000

the factor is 40

If Available Credit is more than $1,000 but less than $2,500

the factor is 25

If Available Credit is less thanor equal to $0.0 the

factor is (25)

RevXcel Priority Payment Indicators CalculationsProForma Priority Payment Indicators Calculations

ProForma Data

ProForma Engine ProForma Calculations

Summary Page

With New Algorithms Pct of TotalFile # of Accounts PCT Billed Collected Pct BilledTotal 7427 6,378,761$ 577,039$ 9.05%

9000 82 1.10% 74,349$ 32,850$ 44.18% 1.17%Five 333 4.48% 116,897$ 81,201$ 69.46% 1.83%Four 619 8.33% 342,084$ 128,225$ 37.48% 5.36%Three 1033 13.91% 691,596$ 142,542$ 20.61% 10.84%Two 2951 39.73% 3,376,210$ 109,865$ 3.25% 52.93%One 2407 32.41% 1,776,767$ 82,356$ 4.64% 27.85%

WithoutFile # of Accounts PCT Billed Collected Pct BilledTotal 7427 6,378,761$ 511,980$ 8.03%

9000 82 1.10% 74,349$ 32,850$ 44.18% 1.17%Five 683 9.20% 296,242$ 128,474$ 43.37% 4.64%Four 942 12.68% 472,586$ 107,494$ 22.75% 7.41%Three 878 11.82% 845,592$ 50,241$ 5.94% 13.26%Two 2691 36.23% 2,720,840$ 118,401$ 4.35% 42.65%One 2149 28.93% 1,967,535$ 74,520$ 3.79% 30.85%

Charity 529,000$

When Only working Buckets Three and up:With New Algorithms 2067 27.83% 1,224,926$ 384,818$ 31.42% 6.03%Without 2585 34.81% 1,688,769$ 319,059$ 18.89% 5.00%

ProForma

For more information contact:

James K. LawrenceHealthSpan Solutions

404-375-0008www.HealthSpanSolutions.com

Partners Working Together