Significant Q3 Transactions

Transcription

1 QUARTERLY DIALOGUE QUARTERLY DIALOGUE THIRD QUARTER 2011 THIRD QUARTER 2011 For additional information, contact the NCA Healthcare investment banking team: Edward R. Casas, MD Senior Managing Director Head of Navigant Capital Advisors 847/ Gregory Hagood Managing Director Investment Banking Practice Area Leader 404/ Michael Lane Managing Director 312/ Matthew M. Caine, CFA Director 404/ Kim Brady Managing Director 847/ Neil Luria Managing Director 216/ Jerry Chang Director, Valuation Services 404/ The NCA Quarterly Dialogue contains news, statistics, and trends impacting select companies within the sector. Analysis is further organized to include: (i) Alternate Site, (ii) Diagnostic Services, (iii) Distribution, (iv) Equipment & Supplies, (v) Information Technology, (vi) Hospital Providers, (vii) Long Term Care & Senior Living, and (viii) Managed Care companies. Significant Q3 Transactions September 30, 2011 General Dynamics Information Technology, Inc. completed the acquisition of Vangent, Inc. for approximately $960 million. Vangent, Inc. provides health information management and business process outsourcing services. September 30, 2011 Steward Health Care System, LLC completed the acquisitions of Morton Hospital and Medical Center ( Morton ) for approximately $59 million. NCA served as the financial advisor to Morton. September 21, 2011 Senior Housing Properties Trust (NYSE: SNH) completed the acquisition of nine large senior living communities from Pritzker Realty Group, LLC and CC Development Group, Inc. for approximately $480 million. August 31, 2011 Medtronic, Inc. (NYSE: MDT) completed the acquisition of the remaining 91.1% stake in Salient Surgical Technologies, Inc. for approximately $450 million. Salient Surgical Technologies, Inc. designs, manufactures, and markets devices and tools for surgical procedures. August 3, 2011 Blackstone Capital Partners VI, L.P entered into a definitive merger agreement to acquire Emdeon Inc. (NYSE: EM) for $2.2 billion. Emdeon Inc. provides revenue and payment cycle management solutions that connect payers, providers, and patients in the United States healthcare system. August 2, 2011 Fresenius Medical Care AG & Co. KGAA (DB: FME) signed a merger agreement to acquire Liberty Dialysis, LLC for $1.7 billion. Liberty Dialysis, LLC develops, owns, and operates dialysis clinics. July 28, 2011 Tomball Hospital Authority (Authority), which owns and operates Tomball Regional Medical Center ( TRMC ), announced that its board of directors unanimously approved the sale of substantially all of the assets of TRMC to a subsidiary of Community Health Systems, Inc. (NYSE: CYH). The transaction subsequently closed on October 4, NCA served as the financial advisor to Tomball Hospital Authority. July 21, 2011 Apax Partners, CPP Investment Board, and the Public Sector Pension Investment Board entered into a definitive merger agreement to acquire Kinetic Concepts Inc. (NYSE: KCI) for $5.0 billion. Kinetic Concepts, Inc. engages in the discovery, development, manufacture, marketing, rental, and sale of therapies and products for advanced wound care, regenerative medicine, and therapeutic support system markets. RESTRUCTURING MERGERS, ACQUISITIONS & DIVESTITURES PRIVATE PLACEMENTS VALUATION Realizing Value Delivering Results Atlanta Chicago New York San Francisco Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

2 September 30, 2011 To The Friends and Clients of Navigant Capital Advisors ( NCA ): We are pleased to share with compliments our Quarterly Dialogue for Q The M&A market in the healthcare industry posted a total of 217 announced transactions in 13 separate sectors during the third quarter of 2011, according to preliminary figures from Irving Levin Associates. The combined value of these 217 deals totaled $58.9 billion. This compares with 243 transactions totaling $73.5 billion in Q and 230 transactions representing $66.5 billion in Q For the first three quarters of 2011, the healthcare M&A market recorded 707 deals totaling $185.9 billion. Based on results from the past 10 years, 2011, at the current run rate, is likely to rank among the top five years for healthcare M&A. Healthcare services accounted for over half of the quarter s healthcare M&A volume and more than 58% of the dollar volume, or $34.3 billion. Express Scripts (NASDAQ: ESRX) proposed $29.1 billion acquisition of competitor Medco Health Solutions (NYSE: MHS) is the largest deal in at least a decade among U.S. companies that manage prescription drug benefits and accounts for the majority of the transaction dollars in the healthcare services sector during the third quarter of Healthcare technology accounted for 106 deals or the remaining 49% of third quarter healthcare M&A transaction activity. A few of the other more notable transactions in the overall healthcare sector announced during the quarter include: Apax Partners, CPP Investment Board, and the Public Sector Pension Investment Board s proposed acquisition of Kinetic Concepts Inc. (NYSE: KCI) for $5.0 billion. Blackstone Capital Partners VI, L.P. s proposed acquisition of Emdeon Inc. (NYSE: EM) for $2.2 billion. Fresenius Medical Care AG & Co. s (DB: FME) proposed acquisition of Liberty Dialysis, LLC for $1.7 billion. TPG Capital s acquisition of Immucor Inc. (NasdaqGS: BLUD) for $1.9 billion. General Dynamics Information Technology, Inc. s acquisition of Vangent, Inc. for approximately $960 million. Acquisition activity in the healthcare sector, particularly among hospitals, is likely to remain vigorous given the surplus of underfunded facilities, cuts to Medicare and Medicaid, tightening reimbursement rates, and mandates to adopt electronic medical records per federal regulations. In particular, there have been 65 domestic hospital transactions through the first three quarters of 2011, which is 28% ahead of last year on a run rate basis. A growing number of these transactions are conversions from not for profit to for profit status via traditional asset sales or affiliations. Economic conditions and industry trends are driving consolidations as more hospitals are affiliating with larger multi hospital heath systems with 60% of all hospitals now part of these systems, compared with just 38% of hospitals in We continue to work closely with our extensive Navigant Consulting National Healthcare Practice to provide investment banking services to a wide array of healthcare firms and investors. The industry leading Healthcare Practice provides a great resource for our clients. We welcome your comments and hope that you continue to find our Quarterly Dialogue informative. Matt Caine, CFA Michael Lane Director Managing Director Navigant Capital Advisors Navigant Capital Advisors [email protected] [email protected] (404) (312) Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

3 Representative Healthcare Engagements Realizing Value Delivering Results $830,000,000 $83,800,000 $156,000,000 $25,000,000 CARITAS CHRISTI HEALTH CARE has been acquired by has been acquired by has been acquired by MedCath Partners Division has been acquired by Steward Health Care System LLC Financial Advisor St. David s Healthcare Partnership, L.P. Sell Side Advisor Financial Advisor, Chief Executive Officer, Chief Restructuring Officer Sell Side Advisor Sell Side Advisor $76,250,000 $585,000,000 Sale of Assets on behalf of $32,000,000 $5,000,000 has been acquired by has been acquired by has been acquired by has been acquired by MedCath Corporation (Nasdaq: MDTH) Sell Side Advisor Financial Advisor Sell Side Advisor Sell Side Advisor Sell Side Advisor $86,400,000 $38,000,000 $119,000,000 An equity interest in has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by Sell Side Advisor Sell Side Advisor Sell Side Advisor Steward Health Care System LLC Sell Side Advisor Sell Side Advisor $23,500,000 $58,500,000 $7,000,000 $31,000,000 $73,000,000 An equity interest in has been acquired by has been acquired by Southwest Arizona Heart and Vascular Center, LLC has been acquired by its physician partners has been acquired by has been acquired by AR-MED, LLC Steward Health Care System LLC Sell Side Advisor Sell Side Advisor Sell Side Advisor Sell Side Advisor Sell Side Advisor I N V E S T M E N T B A N K I N G R E S T R U C T U R I N G V A L U A T I O N & F I N A N C I A L R I S K M A N A G E M E N T w w w. n c a c f. c o m A t l a n t a C h i c a g o N e w Yo r k S a n F r a n c i s c o 2011 Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses.

4 Contacts: Practice Leaders Dave Zito Managing Director Alex Hunter Managing Director Eduardo Schur Managing Director Division Leaders Dave Hampshire Andy Epstein Armand Balsano Marty Rosenberg Navigant Healthcare Navigant Healthcare ( assists health systems, physician practice groups and payers in designing, developing and implementing solutions that create highperforming healthcare organizations. Our experienced healthcare team of more than 500 healthcare consultants helps organizations with strategic advisory, operational improvement, and outsourcing and technology solutions. Specific services include revenue cycle management, supply chain improvement, facilities planning, physician hospital alignment, care innovation and clinical documentation improvement. What We Do Strategic Advisory Navigant provides healthcare executives objective, practical, results oriented assistance to set strategic directions that enable long term growth through the ever changing industry. Our services include:» Enterprise Strategic Planning» Business Plan Development, Validation and Execution» Physician Collaboration and Health System Integration Strategies» Market Research, Analysis and Forecasting» Portfolio Analysis/Planning» Product Planning, Launch and Life Cycle Strategies» Pricing and Reimbursement strategy, Design and Implementation» Public Policy Evaluation and Design» Dispute, Investigation and Compliance Advisory» Financial Advisory, including M&A, Business Valuation, Due Diligence and Restructuring and Bankruptcy Advisory Operations Management & Implementation Navigant has extensive experience, and a successful record, helping healthcare organizations implement solutions to improve financial, operational and quality performance. Our services include:» Performance Improvement Assessments/Implementation» Revenue Cycle: Capture, Collection Acceleration, Payer Contract Improvement» Supply Chain Management and Procurement Assistance» Clinical Throughput and Capacity Management» Physician Services and Medical Staff Development» Physician Practice and ASC Management» Contract Monitoring and Oversight» Federal Compliance Requirement, and Revenue Opportunity Assessments» Facility Planning, Design and Construction Management Outsourcing and Technology Solutions Navigant provides outsourcing and technology solutions to improve efficiency and help clients make more informed decisions based on better information management. Our services include:» Billing and Collections Outsourcing» Electronic Health Record Adoption and Implementation» Performance Scorecards and Revenue Cycle Productivity Metrics» Interactive and Dynamic Marketing Tools, Benchmarking and Information Management Technology Solutions» Proprietary Tools - Navigant VitalStats TM - HealthAware - CDI Monitor - GPS Health TM

5 HEALTHCARE SERVICES QUARTERLY DIALOGUE Third Quarter 2011 Navigant s Perspective: 1 Bridging Employed Physician Compensation Plans Into a Value Based World Market Summary 3 Healthcare Industry Stock Market Value Index 5 NCA Universe 6 Public Company Equity Market Value Analysis Alternate Site 9 Diagnostic Services 12 Healthcare Distributors 15 Healthcare Equipment and Supplies 18 Healthcare Information Technology 21 Hospital Providers 24 Long Term Care / Senior Living 27 Managed Care 30 Healthcare Industry Transactions 33 Distressed Market Indicators 36 Notes / Subscription Form Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses. NCA gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. NCA makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. (Officers, directors and employees of Navigant Consulting, Inc. and its subsidiaries may have positions in the securities of the companies discussed.) This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. NCA or its affiliates may from time to time provide investment banking or related services to these companies. Like all NCA employees, the authors of this publication receive compensation that is affected by overall firm profitability.

6 Navigant s Perspective Page 1 of 40

7 For additional information, please visit the Navigant Healthcare website at: Page 2 of 40

8 Market Summary Major Equity Market Indices % Change From Index 9/30/ Months Ago 1 Year Ago 2 Years Ago 3 Months Ago 1 Year Ago 2 Years Ago Dow Jones Industrial 10, , , , % 1.2% 12.4% NASDAQ Composite 2, , , , % 2.0% 13.8% Russell % 4.7% 6.6% S&P 500 1, , , , % 0.9% 7.0% Wilshire , , , , % 1.5% 7.9% S&P Healthcare Index % 4.0% 10.2% Relative Performance (%) 150.0% 140.0% Dow Jones Industrial Average (^DJI) 130.0% NASDAQ Composite (^COMP) 120.0% Russell 2000 (^RUT) 110.0% 100.0% S&P 500 Index (^SPX) 90.0% Wilshire % Page 3 of 40

9 Market Summary (cont.) Benchmark Interest Rates Interest Rate 9/30/ Year Ago Prime Rate 3.25% 3.25% 1 Month Libor 0.24% 0.26% 3 Month Libor 0.37% 0.29% 6 Month Libor 0.56% 0.46% 12 Month Libor 0.86% 0.78% 2 Year Treasury 0.25% 0.44% 10 Year Treasury 1.93% 2.52% 30 Year Treasury 2.92% 3.69% Term Treasury YTM Interest Rate Spreads AA Corporate BBB Corporate BB Corporate B Corporate Spread Spread Spread Spread YTM (BPS) YTM (BPS) YTM (BPS) YTM (BPS) 3 Month 0.09% 0.57% % % % Month 0.15% 0.64% % % % Year 0.29% 1.28% % % % Year 0.99% 2.43% % % % Year 2.06% 3.66% % % % Year 3.01% 4.35% % % 420 na na Page 4 of 40

10 Healthcare Industry Stock Market Value Index S&P Healthcare Index vs. the Dow Jones Industrial Average during the last 12 months Relative Performance (%) Dow Jones Industrial Average (^DJI) S&P Healthcare Index (^HCX) S&P Healthcare Index vs. the Nasdaq Composite during the last 12 months Relative Performance (%) NASDAQ Composite (^COMP) S&P Healthcare Index (^HCX) S&P Healthcare Index vs. the S&P 500 during the last 12 months Relative Performance (%) S&P 500 Index (^SPX) S&P Healthcare Index (^HCX) Page 5 of 40

11 NCA Universe Public Company Equity Market Value Analysis Market Capitalizations % Change Segments/Companies Ticker as of 9/30/2011 ($mm) 3 Month 6 Month 12 Month Alternate Site: Amedisys Inc. AMED % 58.0% 36.8% AmSurg Corp. AMSG % 11.6% 30.3% DaVita, Inc. DVA 5, % 28.7% 17.4% Fresenius Medical Care AG & Co. KGAA DB:FME 15, % 7.5% 13.1% Gentiva He alth Services Inc. NasdaqGS:GTIV % 80.2% 74.1% Integramed America Inc. INMD % 23.6% 17.5% IPC The Hospitalist Company, Inc. IPCM % 20.9% 32.1% Lincare Holdings Inc. LNCR 2, % 25.1% 14.6% Diagnostic Services: Alliance He althca re Services, Inc. AIQ % 74.1% 74.9% Bio Reference Laboratories Inc. BRLI % 17.9% 11.4% Laboratory Corp. of America Holdings LH 8, % 13.1% 0.7% Pharmaceutical Product Development Inc. PPDI 2, % 8.4% 0.8% Quest Diagnostics Inc. DGX 7, % 20.9% 12.6% RadNet, Inc. RDNT % 30.0% 2.9% Healthcare Distributors: AmerisourceBergen Corporation ABC 10, % 7.5% 18.2% Cardinal He alth, Inc. CAH 14, % 0.4% 25.4% He nry Schein Inc. HSIC 5, % 11.1% 6.9% McKesson Corporation MCK 17, % 10.9% 10.9% Me dcohealth Solutions Inc. MHS 18, % 20.6% 19.9% Omnicare Inc. OCR 3, % 4.8% 18.3% Owens & Minor Inc. OMI 1, % 12.3% 0.7% PSS World Medical Inc. PSSI 1, % 30.0% 13.0% Stericycle, Inc. SRCL 6, % 8.2% 17.3% Thermo Fisher Scie ntific, Inc. TMO 19, % 10.9% 0.9% Healthcare Equipment and Supplies: Abbott Laboratories ABT 79, % 4.9% 1.3% Baxter International Inc. BAX 31, % 3.4% 14.4% Becton, Dickinson and Company BDX 15, % 9.4% 7.3% Boston Scie ntific Corporation BSX 9, % 17.7% 2.7% CardioNet, Inc. BEAT % 36.7% 32.7% Johnson & Johnson JNJ 174, % 7.5% 2.3% Me dtronic, Inc. MDT 35, % 16.6% 3.2% Siemens AG SIE 59, % 29.7% 11.8% St. Jude Me dical Inc. STJ 11, % 28.5% 7.4% Page 6 of 40

12 NCA Universe Public Company Equity Market Value Analysis (cont.) Market Capitalizations % Change Segments/Companies Ticker as of 9/30/2011 ($mm) 3 Month 6 Month 12 Month Healthcare Information Technology: Allscripts He a lthcare Solutions, Inc. MDRX 3, % 14.6% 1.6% athenahealth, Inc. ATHN 2, % 33.3% 84.8% Cerner Corporation CERN 11, % 24.9% 67.2% Computer Programs & Systems Inc. CPSI % 3.8% 56.8% HMS Holdings Corp. HMSY 2, % 9.4% 28.7% icad Inc. ICAD % 65.0% 68.0% MedAssets, Inc. MDAS % 36.6% 53.4% Omnicell Inc. OMCL % 10.2% 6.8% Quality Systems Inc. QSII 2, % 17.7% 48.2% SXC He alth Solutions, Corp. TSX:SXC 3, % 8.4% 59.4% WebMD He alth Corp. WBMD 1, % 44.7% 40.3% Hospital Providers: Community He alth Systems, Inc. CYH 1, % 58.2% 46.7% HCA Holdings, Inc. HCA 8, % 49.6% He alth Management Associates Inc. HMA 1, % 35.9% 8.4% Lifepoint Hospita ls Inc. LPNT 1, % 7.9% 0.2% Tenet He althcare Corp. THC 1, % 47.6% 17.1% Universal He a lth Services Inc. UHS 3, % 31.0% 12.0% Vanguard He a lth Systems Inc. VHS % Long Term Care / Senior Living: Advocat Inc. AVCA % 15.8% 7.9% Brookdale Senior Living Inc. BKD 1, % 54.8% 22.0% Capital Senior Living Corp. CSU % 41.1% 17.6% Emeritus Corp. ESC % 44.6% 7.2% The Ensign Group, Inc. ENSG % 27.2% 30.1% Kindre d He althcare Inc. KND % 52.4% 12.6% National He althcare Corp. NHC % 29.5% 12.5% Skille d He althcare Group, Inc. SKH % 74.8% 7.6% Sun He althcare Group, Inc. SUNH % 80.7% Sunrise Senior Living Inc. SRZ % 60.0% 39.3% Managed Care: Aetna Inc. AET 13, % 5.8% 2.7% CIGNA Corporation CI 11, % 5.7% 14.5% Coventry He a lth Care Inc. CVH 4, % 10.3% 34.0% Express Scripts Inc. ESRX 18, % 38.5% 31.5% He alth Ne t, Inc. HNT 2, % 30.4% 20.3% Humana Inc. HUM 12, % 2.9% 42.7% Medco He alth Solutions, Inc. MHS 18, % 20.6% 19.9% Unitedhealth Group, Inc. UNH 49, % 0.4% 25.7% WellPoint Inc. WLP 23, % 9.0% 4.0% Page 7 of 40

13 NCA Universe Public Company Equity Market Value Analysis (cont.) Relative Performance (%) Alternate Site Diagnostic Services Distributors Equipment & Supplies Information Technology Hospital Providers Long-Term Care / Senior Living Managed Care S&P 500 Index (^SPX) NCA Universe - Index Returns 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% Alternate Site Diagnostic Services Distributors Equipment & Supplies Information Technology Hospital Providers Long-Term Care / Senior Living Managed Care -60.0% 3-Month Return 6-Month Return 12-Month Return Page 8 of 40

14 Alternate Site Relative Price Chart Alternate Site NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Alternate Site Amedisys Inc. AMED $ $38.87 $12.64 $433.6 $ x 3.0x 3.7x AmSurg Corp. AMSG , x 4.4x 4.9x DaVita, Inc. DVA , , x 7.9x 9.8x Fresenius Medical Care AG & Co. KGAA DB:FME , , x 8.1x 10.3x Gentiva Health Services Inc. GTIV , x 4.7x 5.4x Integramed America Inc. INMD x 3.5x 7.0x IPC The Hospitalist Company, Inc. IPCM x 11.9x 12.7x Lincare Holdings Inc. LNCR , , x 5.6x 7.5x High 1.63x 11.9x 12.7x Low 0.20x 3.0x 3.7x Mean 1.09x 6.1x 7.7x Median 1.41x 5.2x 7.3x Page 9 of 40

15 Alternate Site (cont.) Third Quarter 2011 News September 21, 2011 Kootenai Health agreed to acquire Heart Clinics Northwest, PS. Financial terms of the transaction were not disclosed. Heart Clinics Northwest, PS provides services related to the diagnosis and treatment of cardiac and vascular diseases. September 13, 2011 Siemens Hearing Instruments, Inc. completed the acquisition of substantially all of the assets of HearUSA Inc. (OTCPK: HEAR.Q) for approximately $110 million. HearUSA, Inc. operated hearing care centers in the United States. September 9, 2011 EmCare, Inc. acquired Acute Medical Care Specialists, PLLC. Financial terms of the transaction were not disclosed. Acute Surgical Care Specialists, PLLC provides surgical care support services to hospitals in urban and rural communities in Texas and Florida. September 9, 2011 Carilion Clinic agreed to acquire Cardiology Associates of Virginia. Financial terms of the transaction were not disclosed. Cardiology Associates of Virginia, PC provides cardiovascular care services in Southwest Virginia. September 8, 2011 Team Health Holdings, Inc. (NYSE: MH) completed the acquisition of Anesthesia Services, Inc. Financial terms of the transaction were not disclosed. Anesthesia Consultants Services, Inc. provides anesthesia and pain management services. September 6, 2011 DaVita, Inc. (NYSE: DVA) acquired DSI Renal, Inc. for approximately $690 million. DSI Renal, Inc. operates kidney dialysis treatment clinics, hospitals, and acute care centers. August 2, 2011 Fresenius SE & Co. KGaA acquired American Access Care Holdings for approximately $385 million. American Access Care Holdings operates 28 vascular access centers that prepare patients for dialysis in 12 states. July 29, 2011 US Clinical Laboratories, LLC completed the acquisition of Augusta Laboratory, Inc. Financial terms of the transaction were not disclosed. Augusta Laboratory, Inc. offers clinical laboratory services. Page 10 of 40

16 Alternate Site (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Fresenius Medical Care AG & Co. KGAA $12,455.6 Gentiva Health Services Inc. 49.2% DaVita, Inc. 6,618.6 IPC The Hospitalist Company, Inc. 23.3% Gentiva Health Services Inc. 1,768.6 Integramed America Inc. 13.5% Lincare Holdings Inc. 1,721.4 AmSurg Corp. 9.6% Amedisys Inc. 1,537.0 Fresenius Medical Care AG & Co. KGAA 6.0% AmSurg Corp Lincare Holdings Inc. 5.8% IPC The Hospitalist Company, Inc DaVita, Inc. 5.2% Integramed America Inc Amedisys Inc. 5.6% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) AmSurg Corp. 32.2% AmSurg Corp. 35.6% Lincare Holdings Inc. 19.3% Lincare Holdings Inc. 26.1% Fresenius Medical Care AG & Co. KGAA 15.8% Fresenius Medical Care AG & Co. KGAA 20.1% DaVita, Inc. 15.3% DaVita, Inc. 19.0% Gentiva Health Services Inc. 11.5% Gentiva Health Services Inc. 13.1% IPC The Hospitalist Company, Inc. 10.7% Amedisys Inc. 12.3% Amedisys Inc. 10.1% IPC The Hospitalist Company, Inc. 11.5% Integramed America Inc. 2.8% Integramed America Inc. 5.7% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) IPC The Hospitalist Company, Inc. 0.0% IPC The Hospitalist Company, Inc. 0.0x Integramed America Inc. 13.1% Amedisys Inc. 0.9x Amedisys Inc. 14.9% Integramed America Inc. 0.9x AmSurg Corp. 27.9% AmSurg Corp. 1.1x Lincare Holdings Inc. 34.4% Lincare Holdings Inc. 1.2x Fresenius Medical Care AG & Co. KGAA 46.6% Fresenius Medical Care AG & Co. KGAA 2.9x Gentiva Health Services Inc. 60.7% DaVita, Inc. 3.4x DaVita, Inc. 64.5% Gentiva Health Services Inc. 4.4x Page 11 of 40

17 Diagnostic Services Relative Price Chart Diagnostic Services NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Diagnostic Services Alliance, Inc. AIQ $ $4.99 $1.00 $60.7 $ x 5.2x 20.6x Bio Reference Laboratories Inc. BRLI x 7.1x 8.7x Laboratory Corp. of America Holdings LH , , x 8.0x 9.5x Pharmaceutical Product Development Inc. PPDI , , x 8.7x 11.2x Quest Diagnostics Inc. DGX , , x 7.8x 9.4x RadNet, Inc. RDNT x 6.1x 13.1x High 1.85x 8.7x 20.6x Low 1.01x 5.2x 8.7x Mean 1.45x 7.1x 12.1x Median 1.55x 7.4x 10.3x Page 12 of 40

18 Diagnostic Services (cont.) Third Quarter 2011 News September 28, 2011 NuVasive, Inc. (NasdaqGS: NUVA) completed the acquisition of Impulse Monitoring, Inc. from Tullis Dickerson Capital Focus III, L.P. and others for $80 million. The transaction subsequently closed on October 7, Impulse Monitoring, Inc. provides intraoperative neurophysiological monitoring and autotransfusion services to hospitals and other healthcare facilities for spinal, nerve, and brain related surgeries. September 22, 2011 Tunstall Healthcare Group Ltd. entered into a definitive agreement to acquire American Medical Alert Corp. (NasdaqCM: AMAC) for $82 million. American Medical Alert Corp. provides healthcare communication and monitoring services. September 8, 2011 Private Diagnostic Clinic, Pllc agreed to acquire Tolnitch Surgical Associates, P.A. Financial terms of the transaction were not disclosed. Tolnitch Surgical Associates, P.A. provides surgical care services for women with breast cancer. September 7, 2011 Virtual Radiologic Corporation completed the acquisition of Diagnostic Imaging, Inc. Financial terms of the transaction were not disclosed. Diagnostic Imaging, Inc. provides radiology services to hospitals. September 2, 2011 Lash Group Healthcare Consultants completed the acquisition of Premier Source Diagnostics. Financial terms of the transaction were not disclosed. Premier Source Diagnostics Inc. provides consulting and reimbursement services for diagnostic companies. August 1, 2011 Solstas Lab Partners completed the acquisition of Southern Diagnostic Laboratories. Financial terms of the transaction were not disclosed. Southern Diagnostic Laboratories, LLC provides pathology and clinical laboratory services to the patients, physicians, and healthcare community of the Southeast. Page 13 of 40

19 Diagnostic Services (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Quest Diagnostics Inc. $7,413.5 Bio Reference Laboratories Inc. 23.1% Laboratory Corp. of America Holdings 5,343.6 Laboratory Corp. of America Holdings 11.7% Pharmaceutical Product Development Inc. 1,544.8 RadNet, Inc. 11.1% RadNet, Inc Pharmaceutical Product Development, Inc. 9.2% Bio Reference Laboratories Inc Alliance, Inc. 0.3% Alliance, Inc Quest Diagnostics Inc. 0.2% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Laboratory Corp. of America Holdings 19.6% Alliance, Inc. 29.0% Quest Diagnostics Inc. 17.2% Laboratory Corp. of America Holdings 23.1% Pharmaceutical Product Development Inc. 14.8% Quest Diagnostics Inc. 20.7% Bio Reference Laboratories Inc. 11.6% Pharmaceutical Product Development, Inc. 19.0% RadNet, Inc. 8.1% RadNet, Inc. 17.5% Alliance, Inc. 7.3% Bio Reference Laboratories Inc. 14.3% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Pharmaceutical Product Development Inc. 0.0% Pharmaceutical Product Development, Inc. 0.0x Bio Reference Laboratories Inc. 20.4% Bio Reference Laboratories Inc. 0.6x Laboratory Corp. of America Holdings 43.5% Laboratory Corp. of America Holdings 1.6x Quest Diagnostics Inc. 55.6% Quest Diagnostics Inc. 2.8x Alliance, Inc. 92.7% Alliance, Inc. 4.8x RadNet, Inc % RadNet, Inc. 5.2x Page 14 of 40

20 Healthcare Distributors Relative Price Chart Distributors NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Healthcare Distributors AmerisourceBergen Corporation ABC $ $43.47 $30.40 $10,035.2 $9, x 7.1x 7.7x Cardinal Health, Inc. CAH , , x 7.9x 9.5x Henry Schein Inc. HSIC , , x 9.7x 11.6x McKesson Corporation MCK , , x 7.7x 9.3x MedcoHealth Solutions Inc. MHS , , x 7.6x 9.1x Omnicare Inc. OCR , , x 7.7x 10.1x Owens & Minor Inc. OMI , , x 8.0x 9.3x PSS World Medical Inc. PSSI , , x 7.5x 9.3x Stericycle, Inc. SRCL , , x 16.9x 19.3x Thermo Fisher Scientific, Inc. TMO , , x 9.9x 15.3x High 5.21x 16.9x 19.3x Low 0.12x 7.1x 7.7x Mean 1.03x 9.0x 11.1x Median 0.47x 7.8x 9.4x Page 15 of 40

21 Healthcare Distributors (cont.) Third Quarter 2011 News September 1, 2011 ConvaTec, Inc. completed the acquisition of Boston Medical Device International, LLC from Regent Private Capital LLC. Financial terms of the transaction were not disclosed. Boston Medical Device International, LLC, along with its subsidiaries, sells, markets, and distributes medical devices and related healthcare products to healthcare institutions and retail outlets in private and public sectors in Latin America. August 25, 2011 Baxter International Inc. (NYSE: BAX) signed a definitive agreement to acquire Baxa Corporation for $380 million. Baxa Corporation manufactures and distributes medications handling, packaging, and administration devices. August 23, 2011 Omnicare Inc. (NYSE: OCR) made an offer to acquire PharMerica Corporation (NYSE: PMC) for approximately $440 million. PharMerica Corporation operates as an institutional pharmacy services company in the United States. It offers services to healthcare facilities and provides management pharmacy services to hospitals. August 9, 2011 Dohmen Investment Group, LLC completed the acquisition of Centric Health Resources, Inc. Financial terms of the transaction were not disclosed. Centric Health Resources, Inc. provides prescribed therapies and specialized health management services to affected individuals and their families. It offers an integrated distribution and patient services model, including distribution, reimbursement hub, specialty pharmacy, nursing, health management and compliance program. July 29, 2011 Spectrum Surgical Instruments Corp. completed the acquisition of Arrow Medical Supply, Inc. Financial terms of the transaction were not disclosed. Arrow Medical Supply, Inc. distributes surgical instruments. Page 16 of 40

22 Healthcare Distributors (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) McKesson Corporation $114,614.0 Stericycle, Inc. 20.9% Cardinal Health, Inc. 102,644.2 Henry Schein Inc. 13.3% AmerisourceBergen Corporation 79,525.3 Medco Health Solutions, Inc. 7.3% MedcoHealth Solutions Inc. 67,343.4 Thermo Fisher Scientific, Inc. 5.6% Thermo Fisher Scientific, Inc. 11,184.9 McKesson Corporation 4.7% Owens & Minor Inc. 8,389.3 Cardinal Health, Inc. 4.2% Henry Schein Inc. 7,995.5 Owens & Minor Inc. 4.0% Omnicare Inc. 6,243.9 AmerisourceBergen Corporation 3.3% PSS World Medical Inc. 2,069.6 Omnicare Inc. 2.9% Stericycle, Inc. 1,565.0 PSS World Medical Inc. 1.4% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Stericycle, Inc. 27.0% Stericycle, Inc. 30.8% Thermo Fisher Scientific, Inc. 12.9% Thermo Fisher Scientific, Inc. 19.8% Omnicare Inc. 7.6% Omnicare Inc. 9.9% Henry Schein Inc. 6.9% Henry Schein Inc. 8.3% PSS World Medical Inc. 6.5% PSS World Medical Inc. 8.1% MedcoHealth Solutions Inc. 3.8% Medco Health Solutions, Inc. 4.5% Owens & Minor Inc. 2.4% Owens & Minor Inc. 2.8% McKesson Corporation 1.8% McKesson Corporation 2.1% AmerisourceBergen Corporation 1.5% Cardinal Health, Inc. 1.8% Cardinal Health, Inc. 1.5% AmerisourceBergen Corporation 1.7% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Henry Schein Inc. 12.9% Henry Schein Inc. 0.7x Owens & Minor Inc. 19.1% Owens & Minor Inc. 0.9x Thermo Fisher Scientific, Inc. 20.5% AmerisourceBergen Corporation 1.0x AmerisourceBergen Corporation 29.8% PSS World Medical Inc. 1.3x Cardinal Health, Inc. 30.0% Cardinal Health, Inc. 1.3x Omnicare Inc. 34.0% McKesson Corporation 1.6x PSS World Medical Inc. 35.0% Medco Health Solutions, Inc. 1.7x McKesson Corporation 36.6% Thermo Fisher Scientific, Inc. 1.8x Stericycle, Inc. 49.6% Stericycle, Inc. 2.6x MedcoHealth Solutions Inc. 59.4% Omnicare Inc. 3.2x Page 17 of 40

23 Healthcare Equipment and Supplies Relative Price Chart Equipment & Supplies NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Healthcare Equipment and Supplies Abbott Laboratories ABT $ ,556.6 $54.24 $45.07 $79,603.3 $89, x 8.6x 12.0x Baxter International Inc. BAX , , x 9.0x 10.9x Becton, Dickinson and Company BDX , , x 7.5x 9.6x Boston Scientific Corporation BSX , , , x 6.7x 11.3x CardioNet, Inc. BEAT x NM NM Johnson & Johnson JNJ , , , x 8.4x 9.9x Medtronic, Inc. MDT , , , x 7.8x 9.2x Siemens AG SIE , , x 5.8x 8.0x St. Jude Medical Inc. STJ , , x 8.2x 9.9x High 2.63x 9.0x 12.0x Low 0.23x 5.8x 8.0x Mean 1.95x 7.8x 10.1x Median 2.39x 8.0x 9.9x Page 18 of 40

24 Healthcare Equipment and Supplies (cont.) Third Quarter 2011 News September 23, 2011 Integra LifeSciences Holdings Corporation (NasdaqGS: IART) completed the acquisition of Ascension Orthopedics, Inc. from Frazier Healthcare Ventures and others for approximately $65 million. Ascension Orthopedics, Inc. produces and sells orthopedic products for the upper and lower limbs to help patients suffering from pain and dysfunction in the United States and internationally. September 1, 2011 Domtar Corporation (NYSE: UFS) completed the acquisition of Attends Healthcare Products, Inc. from KPS Capital Partners, L.P. for approximately $320 million. Attends Healthcare Products, Inc. manufactures adult incontinence products. August 24, 2011 CAE Healthcare, Inc. completed the acquisition of Medical Education Technologies, Inc. from Thrivent Financial for Lutherans, Investment Arm WI, Baird Capital Partners and other shareholders for approximately $130 million. Medical Education Technologies, Inc. develops simulation and learning tools for doctors, nurses, first responders, and military medics in the United States. August 19, 2011 Catalent Pharma Solutions, Inc. signed an agreement to acquire the Clinical Trial Supplies Business of Aptuit, Inc. for $410 million. August 18, 2011 TPG Capital along with TPG Partners VI, L.P. completed its acquisition of Immucor Inc. (NasdaqGS: BLUD) for $1.9 billion. Immucor, Inc. engages in the development, manufacture, and sale of reagents and automated systems. August 2, 2011 Minntech Corporation completed the acquisition of substantially all of the assets of Byrne Medical, Inc. from Don Byrne and other investors for approximately $110 million. Byrne Medical, Inc. develops irrigation solutions for endoscopy applications. July 1, 2011 Gyrus ACMI, Inc. acquired Olympus Endo Technology America Inc. for $60 million. Olympus Endo Technology America Inc. develops, manufactures, and sells endoscope insertion assistance devices. Page 19 of 40

25 Healthcare Equipment and Supplies (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Siemens AG $79,567.0 Siemens AG 14.8% Johnson & Johnson 63,396.0 Abbott Laboratories 12.8% Abbott Laboratories 37,299.5 St. Jude Medical Inc. 9.6% Medtronic, Inc. 16,209.0 Baxter International Inc. 6.3% Baxter International Inc. 13,542.0 Becton, Dickinson and Company 5.9% Boston Scientific Corporation 7,818.0 Medtronic, Inc. 3.5% Becton, Dickinson and Company 7,651.3 Johnson & Johnson 1.3% St. Jude Medical Inc. 5,412.6 Boston Scientific Corporation 2.2% CardioNet, Inc CardioNet, Inc. 6.6% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Medtronic, Inc. 28.5% Medtronic, Inc. 33.6% Johnson & Johnson 26.0% Johnson & Johnson 30.8% St. Jude Medical Inc. 25.5% St. Jude Medical Inc. 30.6% Baxter International Inc. 23.4% Becton, Dickinson and Company 29.2% Becton, Dickinson and Company 22.7% Baxter International Inc. 28.4% Abbott Laboratories 19.9% Abbott Laboratories 27.8% Boston Scientific Corporation 14.8% Boston Scientific Corporation 24.8% Siemens AG 9.9% Siemens AG 13.6% CardioNet, Inc. 12.0% CardioNet, Inc. 1.8% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) CardioNet, Inc. 0.0% CardioNet, Inc. 0.0x Johnson & Johnson 23.2% Johnson & Johnson 1.0x Boston Scientific Corporation 26.7% Baxter International Inc. 1.1x Becton, Dickinson and Company 34.0% Becton, Dickinson and Company 1.2x St. Jude Medical Inc. 34.7% St. Jude Medical Inc. 1.5x Baxter International Inc. 37.8% Abbott Laboratories 1.8x Siemens AG 37.8% Siemens AG 1.8x Medtronic, Inc. 38.1% Medtronic, Inc. 1.8x Abbott Laboratories 40.8% Boston Scientific Corporation 2.2x Page 20 of 40

26 Healthcare Information Technology Relative Price Chart Information Technology NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Healthcare Information Technology Allscripts Healthcare Solutions, Inc. MDRX $ $23.13 $13.85 $3, $3, x 17.5x 33.1x athenahealth, Inc. ATHN , , x 41.8x NM Cerner Corporation CERN , , x 20.9x 27.6x Computer Programs & Systems Inc. CPSI x 17.2x 18.1x HMS Holdings Corp. HMSY , , x 20.8x 25.8x icad Inc. ICAD x NM NM MedAssets, Inc. MDAS , x 11.0x 28.0x Omnicell Inc. OMCL x 16.4x 28.9x Quality Systems Inc. QSII , , x 24.2x 26.1x SXC Health Solutions, Corp. SXC , x 14.1x 23.8x WebMD Health Corp. WBMD , , x 9.4x 10.7x High 7.32x 41.8x 33.1x Low 0.69x 9.4x 10.7x Mean 3.78x 19.3x 24.7x Median 3.05x 17.4x 26.1x Page 21 of 40

27 Healthcare Information Technology (cont.) Third Quarter 2011 News September 22, 2011 Vista Equity Partners entered into a definitive agreement to acquire Sage Software Healthcare Inc. from Sage Group plc (LSE: SGE) for approximately $314 million. Sage Software Healthcare, Inc. provides software products for the healthcare market in North America. The company s products include integrated solutions for electronic health records, practice management, radiology, community health, business intelligence, and electronic data interchange. August 31, 2011 athenahealth, Inc. (NasdaqGS: ATHN) completed the acquisition of Proxsys, LLC from Clayton Associates, LLC, FCA Venture Partners IV, L.P. and other shareholders. Proxsys, LLCʹs name was changed to athenacoordinator. Proxsys, LLC provides web based solutions in preadmissions to healthcare facilities. August 18, 2011 MedQuist Holdings Inc. (NasdaqGM: MEDH) completed the acquisition of Multimodal Technologies, Inc. for approximately $130 million. Multimodal Technologies, Inc. provides solutions for healthcare providers to create structured, encoded, and shareable clinical documents. July 18, 2011 Aetna Inc. (NYSE: AET) signed an agreement to acquire PayFlex Systems USA, Inc. from Oak Investment Partners and other investors for approximately $200 million. The transaction was subsequently completed on October 3, PayFlex Systems USA, Inc. provides administration for employee benefit programs in the United States. Page 22 of 40

28 Healthcare Information Technology (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) SXC Health Solutions, Corp. $3,326.5 SXC Health Solutions, Corp. 89.2% Cerner Corporation 1,978.8 MedAssets, Inc. 31.1% Allscripts Healthcare Solutions, Inc. 1,240.0 athenahealth, Inc. 30.5% WebMD Health Corp HMS Holdings Corp. 29.8% MedAssets, Inc Computer Programs & Systems Inc. 27.3% Quality Systems Inc Quality Systems Inc. 24.9% HMS Holdings Corp WebMD Health Corp. 20.1% athenahealth, Inc Cerner Corporation 12.2% Omnicell Inc icad Inc. 8.0% Computer Programs & Systems Inc Omnicell Inc. 6.6% icad Inc Allscripts Healthcare Solutions, Inc. 0.0% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Quality Systems Inc. 28.9% Quality Systems Inc. 31.2% WebMD Health Corp. 23.0% HMS Holdings Corp. 27.7% Computer Programs & Systems Inc. 22.5% MedAssets, Inc. 27.6% HMS Holdings Corp. 22.2% Cerner Corporation 26.7% Cerner Corporation 20.2% WebMD Health Corp. 26.1% athenahealth, Inc. 12.3% Computer Programs & Systems Inc. 23.7% MedAssets, Inc. 10.9% athenahealth, Inc. 17.1% Allscripts Healthcare Solutions, Inc. 9.0% Allscripts Healthcare Solutions, Inc. 17.0% Omnicell Inc. 4.1% Omnicell Inc. 7.2% SXC Health Solutions, Corp. 3.4% SXC Health Solutions, Corp. 4.0% icad Inc. 24.4% icad Inc. 14.8% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Computer Programs & Systems Inc. 0.0% Computer Programs & Systems Inc. 0.0x HMS Holdings Corp. 0.0% HMS Holdings Corp. 0.0x icad Inc. 0.0% icad Inc. 0.0x Omnicell Inc. 0.0% Omnicell Inc. 0.0x Quality Systems Inc. 0.0% Quality Systems Inc. 0.0x SXC Health Solutions, Corp. 0.0% SXC Health Solutions, Corp. 0.0x athenahealth, Inc. 0.0% athenahealth, Inc. 0.0x Cerner Corporation 5.1% Cerner Corporation 0.2x Allscripts Healthcare Solutions, Inc. 23.2% Allscripts Healthcare Solutions, Inc. 2.0x WebMD Health Corp. 53.4% WebMD Health Corp. 5.3x MedAssets, Inc. 69.2% MedAssets, Inc. 7.1x Page 23 of 40

29 Hospital Providers Relative Price Chart Hospital Providers NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Hospital Providers Community Health Systems, Inc. CYH $ $42.50 $15.91 $1, , x 6.4x 9.6x HCA Holdings, Inc. HCA , , x 6.3x 8.4x Health Management Associates Inc. HMA , , x 6.1x 9.1x Lifepoint Hospitals Inc. LPNT , , x 6.0x 8.8x Tenet Healthcare Corp. THC , , x 5.4x 8.4x Universal Health Services Inc. UHS , , x 7.0x 9.4x Vanguard Health Systems Inc. VHS , x 6.5x 11.8x High 1.11x 7.0x 11.8x Low 0.54x 5.4x 8.4x Mean 0.86x 6.2x 9.4x Median 0.87x 6.3x 9.1x Page 24 of 40

30 Hospital Providers (cont.) Third Quarter 2011 News September 30, 2011 MedCath Corporation (Nasdaq: MDTH) completed the sale of substantially all of the assets of Hualapai Mountain Medical Center in Kingman, AZ, to Kingman Regional Medical Center for approximately $30 million. Navigant Capital Advisors served as the financial advisor to MedCath Corporation. September 30, 2011 MedCath Corporation (Nasdaq: MDTH) announced that it has sold its interest in Louisiana Medical Center & Heart Hospital to Cardiovascular Care Group ( CCG ). Immediately prior to closing, MedCath converted part of its intercompany loans to the hospital to additional equity in the hospital, increasing MedCathʹs ownership to 95.4%, from 89.2%. MedCath then sold its equity and its remaining intercompany loans to CCG for approximately $23 million subject to certain working capital adjustments. Navigant Capital Advisors served as the financial advisor to MedCath Corporation. September 30, 2011 Steward Health Care System, LLC completed the acquisitions of Quincy Medical Center for approximately $38 million. NCA served as the financial advisor to Quincy Medical Center. September 30, 2011 Methodist Healthcare completed the acquisition of Southwind Medical Specialists. Financial terms of the transaction were not disclosed. Southwind Medical Specialists, PC operates a hospital, and offers internal medicine, pediatrics, gastroenterology, endoscopy, nuclear medicine imaging, and workers compensation and occupational health services. September 6, 2011 RegionalCare Hospital Partners, Inc. signed a definitive agreement to acquire Essent Healthcare, Inc. Financial terms of the transaction were not disclosed. Essent Healthcare, Inc. owns and operates a network of hospitals in the United States. August 31, 2011 Lawrence & Memorial Hospital, Inc. entered into an exclusive non binding letter of intent to acquire The Westerly Hospital. Financial terms of the transaction were not disclosed. The Westerly Hospital operates a community hospital that provides various medical, surgical, laboratory, and rehabilitative services. July 19, 2011 Community Health Systems, Inc. (NYSE: CYH) signed a definitive agreement to acquire substantially all of the assets of Moses Taylor Health Care System. Financial terms of the transaction were not disclosed. Moses Taylor Health Care System, Inc. owns and operates the 217 bed Moses Taylor Hospital in Scranton, PA and the 25 bed Mid Valley Hospital in Peckville, PA. Page 25 of 40

31 Hospital Providers (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) HCA Holdings, Inc. $31,501.0 Vanguard Health Systems Inc. 45.0% Community Health Systems, Inc. 13,625.1 Universal Health Services Inc. 27.0% Tenet Healthcare Corp. 9,443.0 Health Management Associates Inc. 14.4% Universal Health Services Inc. 6,695.5 Lifepoint Hospitals Inc. 12.5% Health Management Associates Inc. 5,441.9 Community Health Systems, Inc. 10.5% Vanguard Health Systems Inc. 4,895.9 HCA Holdings, Inc. 3.5% Lifepoint Hospitals Inc. 3,451.8 Tenet Healthcare Corp. 3.0% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) HCA Holdings, Inc. 13.1% HCA Holdings, Inc. 17.7% Universal Health Services Inc. 11.7% Lifepoint Hospitals Inc. 15.7% Lifepoint Hospitals Inc. 10.6% Universal Health Services Inc. 15.6% Health Management Associates Inc. 9.6% Health Management Associates Inc. 14.4% Community Health Systems, Inc. 8.4% Community Health Systems, Inc. 12.5% Tenet Healthcare Corp. 7.8% Tenet Healthcare Corp. 12.1% Vanguard Health Systems Inc. 4.6% Vanguard Health Systems Inc. 8.2% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Lifepoint Hospitals Inc. 44.1% Lifepoint Hospitals Inc. 2.9x Universal Health Services Inc. 60.7% Tenet Healthcare Corp. 3.6x Tenet Healthcare Corp. 68.5% Universal Health Services Inc. 3.6x Community Health Systems, Inc. 76.9% Health Management Associates Inc. 4.1x Health Management Associates Inc. 82.7% HCA Holdings, Inc. 4.6x Vanguard Health Systems Inc. 92.0% Community Health Systems, Inc. 5.4x HCA Holdings, Inc % Vanguard Health Systems Inc. 6.9x Page 26 of 40

32 Long Term Care / Senior Living Relative Price Chart Long-Term Care / Senior Living NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Long Term Care / Senior Living Advocat Inc. AVCA $ $7.60 $4.49 $35.08 $ x 3.3x 5.0x Brookdale Senior Living Inc. BKD , , x 10.2x NM Capital Senior Living Corp. CSU x 8.7x 15.1x Emeritus Corp. ESC , x 15.4x NM The Ensign Group, Inc. ENSG x 5.5x 6.7x Kindred Healthcare Inc. KND , x 7.3x 15.2x National Healthcare Corp. NHC x 4.9x 6.8x Skilled Healthcare Group, Inc. SKH x 4.7x 5.8x Sun Healthcare Group, Inc. SUNH x 1.1x 1.6x Sunrise Senior Living Inc. SRZ x 13.4x 28.1x High 2.49x 15.4x 28.1x Low 0.07x 1.1x 1.6x Mean 0.89x 7.4x 10.5x Median 0.70x 6.4x 6.8x Page 27 of 40

33 Long Term Care / Senior Living (cont.) Third Quarter 2011 News September 29, 2011 Grubb & Ellis Healthcare REIT II, Inc. entered into an agreement to acquire the Southeastern Skilled Nursing Facility Portfolio for approximately $170 million. The Southeastern Skilled Nursing Facility Portfolio comprises nursing facilities spread over 460,000 square feet. It includes 10 facilities with a total of 1,364 beds. The portfolio is located in Alabama, Georgia, Louisiana and Tennessee. September 26, 2011 Senior Care Centers of America, Inc. agreed to acquire Active Day, Inc. The combined organization will have 76 centers in 11 states. Financial terms of the transaction were not disclosed. Active Day, Inc. provides healthcare services for elderly and disabled adults, and their caregivers. August 3, 2011 Capital Senior Living Corp. (NYSE: CSU) acquired four senior living communities in Indiana and Ohio for $53 million. August 2, 2011 CNL Lifestyle Properties, Inc. and Sunrise Senior Living Investments, Inc. completed the acquisition of six senior living facilities (approximately 683 residential units) from Metropolitan Connecticut Property Ventures, LLC for approximately $130 million. August 1, 2011 Sabra Health Care REIT, Inc. (NasdaqGS: SBRA) completed the acquisition of Broadmeadow Investment, Renaissance Healthcare, Capitol Healthcare and Pike Creek Healthcare for approximately $98 million. Broadmeadow Investment, Renaissance Healthcare, Capitol Healthcare and Pike Creek Healthcare own and operate assisted living communities that offer a range of therapeutic programs. July 18, 2011 Chartwell Seniors Housing REIT (TSX: CSH.UN) entered into an agreement to acquire 15 properties in United States from ING Real Estate Community Living Group (ASX:ILF) for approximately $144 million. The 15 properties comprise 2,947 independent supportive living senior communities. July 14, 2011 American Realty Capital V, LLC entered into an agreement to acquire 12 Healthcare Facilities from Jason K, Dodd for approximately $260 million. The 12 facilities are located on 17 properties covering an area of 765,038 square feet. July 6, 2011 Bickford Senior Living Group, LLC and Harrison Street Real Estate Capital, LLC completed the acquisition of a portfolio of six assisted living and dementia care properties consisting of 342 units located in Illinois, Iowa, Nebraska, and Missouri for approximately $62 million.. Page 28 of 40

34 Long Term Care / Senior Living (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Kindred Healthcare Inc. $4,673.5 Emeritus Corp. 22.9% Brookdale Senior Living Inc. 2,257.0 Capital Senior Living Corp. 21.7% Sun Healthcare Group Inc. 1,936.1 The Ensign Group, Inc. 19.4% Sunrise Senior Living Inc. 1,347.0 Skilled Healthcare Group, Inc. 13.3% Emeritus Corp. 1,141.1 National Healthcare Corp. 9.7% Skilled Healthcare Group, Inc Kindred Healthcare Inc. 8.7% National Healthcare Corp Advocat Inc. 8.2% The Ensign Group, Inc Brookdale Senior Living Inc. 4.9% Advocat Inc Sun Healthcare Group, Inc. 0.0% Capital Senior Living Corp Sunrise Senior Living Inc. 5.6% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) The Ensign Group, Inc. 12.4% Brookdale Senior Living Inc. 17.1% Skilled Healthcare Group, Inc. 12.3% Emeritus Corp. 16.2% National Healthcare Corp. 10.1% Skilled Healthcare Group, Inc. 15.2% Capital Senior Living Corp. 8.2% The Ensign Group, Inc. 15.1% Emeritus Corp. 6.4% Capital Senior Living Corp. 14.1% Sun Healthcare Group Inc. 4.3% National Healthcare Corp. 13.9% Brookdale Senior Living Inc. 4.3% Sun Healthcare Group, Inc. 6.2% Advocat Inc. 4.0% Advocat Inc. 6.0% Kindred Healthcare Inc. 2.6% Kindred Healthcare Inc. 5.4% Sunrise Senior Living Inc. 2.1% Sunrise Senior Living Inc. 4.4% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) National Healthcare Corp. 1.7% National Healthcare Corp. 0.1x Sun Healthcare Group Inc. 22.2% Sun Healthcare Group, Inc. 1.3x The Ensign Group, Inc. 35.5% The Ensign Group, Inc. 1.3x Advocat Inc. 46.7% Advocat Inc. 1.5x Kindred Healthcare Inc. 50.7% Skilled Healthcare Group, Inc. 3.7x Capital Senior Living Corp. 50.8% Capital Senior Living Corp. 5.2x Skilled Healthcare Group, Inc. 62.1% Kindred Healthcare Inc. 5.7x Brookdale Senior Living Inc. 69.4% Brookdale Senior Living Inc. 6.3x Sunrise Senior Living Inc. 84.0% Sunrise Senior Living Inc. 9.9x Emeritus Corp. 86.5% Emeritus Corp. 12.2x Page 29 of 40

35 Managed Care Relative Price Chart Managed Care NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (9/30/2011) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Managed Care Aetna Inc. AET $ $46.01 $29.54 $13, $17, x 4.9x 5.7x CIGNA Corporation CI , , x 4.8x 5.3x Coventry Health Care Inc. CVH , , x 4.3x 4.9x Express Scripts Inc. ESRX , , x 8.7x 9.6x Health Net Inc. HNT , , x 4.9x 5.2x Humana Inc. HUM , , x 5.2x 5.9x MedcoHealth Solutions Inc. MHS , , x 7.6x 9.1x Unitedhealth Group, Inc. UNH , , , x 5.6x 6.1x WellPoint Inc. WLP , , x 5.9x 6.6x High 0.59x 8.7x 9.6x Low 0.19x 4.3x 4.9x Mean 0.43x 5.8x 6.5x Median 0.49x 5.2x 5.9x Page 30 of 40

36 Managed Care (cont.) Third Quarter 2011 News September 18, 2011 Health Alliance Plan of Michigan signed a definitive agreement to acquire Midwest Health Plan, Inc. for $70 million. Midwest Health Plan, Inc. operates as a health maintenance organization. August 9, 2011 Independence Blue Cross, Inc. and Blue Cross Blue Shield of Michigan, Inc. agreed to acquire a 50% stake in The AmeriHealth Mercy Family of Companies for $170 million. The AmeriHealth Mercy Family of Companies, a Medicaid managed care company, provides managed care services and management for publicly funded programs in the United States. Page 31 of 40

37 Managed Care (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Unitedhealth Group, Inc. $98,364.0 Express Scripts Inc. 24.2% MedcoHealth Solutions Inc. 67,343.4 CIGNA Corporation 9.6% WellPoint Inc. 59,292.6 Humana Inc. 9.4% Express Scripts Inc. 45,001.9 Unitedhealth Group, Inc. 9.4% Humana Inc. 35,373.5 Medco Health Solutions, Inc. 7.3% Aetna Inc. 33,810.9 WellPoint Inc. 1.5% CIGNA Corporation 21,599.0 Aetna Inc. 2.4% Health Net Inc. 13,074.8 Coventry Health Care Inc. 5.2% Coventry Health Care Inc. 11,957.1 Health Net, Inc. 10.6% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) CIGNA Corporation 11.3% CIGNA Corporation 12.3% Aetna Inc. 9.0% Aetna Inc. 10.3% Unitedhealth Group, Inc. 8.6% Unitedhealth Group, Inc. 9.3% WellPoint Inc. 8.0% WellPoint Inc. 9.1% Coventry Health Care Inc. 7.6% Coventry Health Care Inc. 8.6% Humana Inc. 6.0% Humana Inc. 6.8% Express Scripts Inc. 5.1% Express Scripts Inc. 5.6% MedcoHealth Solutions Inc. 3.8% Medco Health Solutions, Inc. 4.5% Health Net Inc. 3.7% Health Net, Inc. 4.0% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Humana Inc. 20.2% Humana Inc. 0.8x Health Net Inc. 28.2% Health Net, Inc. 1.1x WellPoint Inc. 28.5% CIGNA Corporation 1.2x Coventry Health Care Inc. 28.8% Unitedhealth Group, Inc. 1.2x Unitedhealth Group, Inc. 29.0% Aetna Inc. 1.3x CIGNA Corporation 30.0% Express Scripts Inc. 1.6x Aetna Inc. 30.5% Medco Health Solutions, Inc. 1.7x MedcoHealth Solutions Inc. 59.4% Coventry Health Care Inc. 1.8x Express Scripts Inc. 69.1% WellPoint Inc. 1.8x Page 32 of 40

38 Healthcare Industry Transactions * Closed Third Quarter 2011 Enterprise Closed Date Target Buyer Sector Value ($mm) 09/30/2011 Morton Hospital and Medical Center Stew ard Health Care System LLC Hospitals and Healthcare Centers $59 09/30/2011 Quincy Medical Center Stew ard Health Care System LLC Hospitals and Healthcare Centers $38 09/30/2011 Louisiana Medical Center and Heart Hospital, Cardiovascular Care Group, Inc. Hospitals and Healthcare Centers $24 09/30/2011 Hualapai Mountain Medical Center Kingman Regional Medical Center Hospitals and Healthcare Centers $30 09/30/2011 Southw ind Medical Specialists, PC Methodist Healthcare Hospitals and Healthcare Centers - 09/30/2011 Lafayette Physical Rehabilitation Hospital, LLC Grubb & Ellis Healthcare REIT II, Inc. Hospitals and Healthcare Centers $12 09/28/2011 Micronics, Inc. Sony Corporation of America Healthcare Equipment and Supplies - 09/27/2011 Medical Design Studios, Inc. Dynastar Ventures, Inc. Medical Laboratory Services $0 09/27/2011 SmartPalate International, LLC - Healthcare Equipment and Supplies - 09/27/2011 OrthoScan, Inc. Aton GmbH Healthcare Equipment and Supplies - 09/26/2011 Wilson Inspection X-Ray Services Inc. Hi-Tech Testing Service, Inc. Medical Laboratory Services - 09/26/2011 Doctors Access, Inc. ipractice Group Inc. Health Care Technology - 09/23/2011 Custom Footw ear, Inc. The Orthotic Group, Inc. Healthcare Equipment and Supplies - 09/23/2011 Aragon Surgical, Inc. Aesculap, Inc. Healthcare Equipment and Supplies - 09/22/2011 Hematology Oncology Associates of Illinois, LLC Illinois Cancer Specialists, P.C. Hospitals and Healthcare Centers - 09/21/2011 Greenfield Senior Living, Inc., Three Senior Care Investment Trust Inc. (OTCPK:CVTR) Assisted Living Facilities and Services $21 09/21/2011 Marshall Emergency Services Associates, PLLC Atlanta Equity Investors, LLC Managed Healthcare - 09/21/2011 Integrity Oncology PLLC Baptist Memorial Medical Group Inc. Hospitals and Healthcare Centers - 09/19/2011 MMD Systems Inc. SuccessEHS, Inc. Health Care Technology - 09/19/2011 NextCare, Inc., Four Urgent Care Medical Concentra, Inc. Hospitals and Healthcare Centers - 09/16/2011 Embla Systems, Inc. Natus Medical Inc. (NasdaqGS:BABY) Healthcare Equipment and Supplies $16 09/15/2011 Savannah Court of Lake Oconee National Health Investors Inc. (NYSE:NHI) Assisted Living Facilities and Services $5 09/14/2011 Health InfoTechnics, LLC ivantage Health Analytics, Inc. Health Care Technology - 09/13/2011 PinPointe USA, Inc. NuvoLase, Inc. Healthcare Equipment and Supplies - 09/12/2011 Ascension Orthopedics, Inc. Integra LifeSciences Holdings Corporation Healthcare Equipment and Supplies $65 09/12/2011 Accent Urgent Care & After Hours Pediatrics, WakeMed Physicians Hospitals and Healthcare Centers - 09/09/2011 Applied Medical Inc. Catholic Health Initiatives Medical Laboratory Services - 09/09/2011 Emerald Square Assisted Living, LLC - Assisted Living Facilities and Services $3 09/08/2011 Keystone Rehabilitation Systems - Phoenixville Physiotherapy Associates, Inc. Hospitals and Healthcare Centers - 09/06/2011 IntrinsiQ, LLC International Oncology Netw ork Health Care Technology $35 09/06/2011 Titan Health Corporation, Inc. United Surgical Partners International Inc. Hospitals and Healthcare Centers - 09/01/2011 Four Companies in Healthcare Sector Dentistry for Children Management, Inc. Healthcare Equipment and Supplies - 09/01/2011 Boston Medical Device International, LLC ConvaTec, Inc. Healthcare Distributors - 09/01/2011 Pathw ay Medical Technologies, Inc. MEDRAD, Inc. Healthcare Equipment and Supplies - 08/31/2011 Concentric Medical, Inc. Stryker Corp. (NYSE:SYK) Healthcare Equipment and Supplies $135 08/31/2011 Breathe Oxygen Services, LLC Inogen, Inc. Healthcare Equipment and Supplies - 08/31/2011 MINOS Medical, Inc. Insightra Medical, Inc. Healthcare Equipment and Supplies - 08/31/2011 Tow n Center Village in Portland, Oregon CNL Lifestyle Properties, Inc. Assisted Living Facilities and Services $41 08/31/2011 Behavioral Health Group, Inc. Frontenac Company Hospitals and Healthcare Centers - 08/31/2011 Undeveloped Parts of the Retreat at Toll Brothers Inc. (NYSE:TOL) Assisted Living Facilities and Services $3 08/30/2011 Creative Healthcare Systems Inc. Prognosis Health Information Systems LLC Health Care Technology - 08/26/2011 Hualapai Mountain Medical Center, LLC Kingman Regional Medical Center Hospitals and Healthcare Centers $31 08/24/2011 The Grange Nursing Home (Inc.) - Assisted Living Facilities and Services - 08/24/2011 Medical Education Technologies, Inc. CAE Healthcare, Inc. Healthcare Equipment and Supplies $130 08/24/2011 Hospice Care of the Southw est, Tw o Hospices American Hospice Management, LLC Hospitals and Healthcare Centers - 08/23/2011 Integrity CMi Inc. PBS Biotech Inc. Healthcare Equipment and Supplies - 08/23/2011 Ensign Whittier East LLC and Ensign Pleasanton The Ensign Group, Inc. (NasdaqGS:ENSG) Assisted Living Facilities and Services - 08/22/2011 QTC Management, Inc. Lockheed Martin Corporation (NYSE:LMT) Health Care Technology - 08/17/2011 CeloNova Biosciences, Inc. - Healthcare Equipment and Supplies - 08/16/2011 Metro Urgent Care Concentra Urgent Care Hospitals and Healthcare Centers - 08/16/2011 Ivertexo Internet Solutions Inc. AXIOM Systems, Inc. Health Care Technology - 08/16/2011 Schick Shadel Hospital Inc. Ascend Health Corporation Hospitals and Healthcare Centers - 08/15/2011 Intrasphere Technologies, Inc. Deloitte Consulting Health Care Technology - 08/15/2011 American Billing Services, Inc. PracticeMax, Inc. Health Care Technology - 08/15/2011 Seven Senior Living Facilities Sunrise Senior Living Investments, Inc. Assisted Living Facilities and Services $65 08/15/2011 University Village, Inc. Triad Senior Living, Inc. Assisted Living Facilities and Services $6 08/12/2011 Attends Healthcare Products, Inc. Domtar Corporation (NYSE:UFS) Healthcare Equipment and Supplies $315 08/10/2011 New England Healthcare Portfolio - Assisted Living Facilities and Services $83 08/10/2011 Columbus Surgical Specialists, Inc. Ohiohealth Corporation Hospitals and Healthcare Centers - 08/09/2011 Arbors Senior Care LLC, Seasons By Riviera SNH SE Properties Trust Assisted Living Facilities and Services $5 08/09/2011 The Family Cancer Center, PLLC Baptist Memorial Medical Group Inc. Hospitals and Healthcare Centers - * Includes transactions occurring within segments of the NCA Universe Page 33 of 40

39 Healthcare Industry Transactions * Closed Third Quarter 2011 (cont.) Enterprise Closed Date Target Buyer Sector Value ($mm) 08/04/2011 Emeritus Corp., A 170-Unit Assisted Living - Assisted Living Facilities and Services $6 08/03/2011 Zion Clinic, S.C. Aurora Health Care, Inc. Medical Laboratory Services - 08/03/2011 Rainier Surgical, Inc. and Ortho-Medical Hanger Orthopedic Group Inc. (NYSE:HGR) Healthcare Distributors - 08/03/2011 Thoratec LLC Thoratec Corp. (NasdaqGS:THOR) Healthcare Equipment and Supplies $150 08/03/2011 Four Senior Living Communities in Indiana and Capital Senior Living Corp. (NYSE:CSU) Assisted Living Facilities and Services $53 08/02/2011 Byrne Medical, Inc. Minntech Corporation Healthcare Equipment and Supplies $110 08/02/2011 Six Senior Living Facilities CNL Lifestyle Properties, Inc.; Sunrise Senior Assisted Living Facilities and Services $131 08/02/2011 Mission Health Services, Hurricane Health and Milestone Healthcare, Inc. Assisted Living Facilities and Services - 08/01/2011 Oceanview Healthcare and Rehabilitation Center Keystone Care, Inc. Assisted Living Facilities and Services - 08/01/2011 Lakeland Hills Independent & Assisted Living Bridgestone Living, Inc. Assisted Living Facilities and Services - 08/01/2011 PivotHealth, LLC Southw ind Health Partners, L.L.C. Managed Healthcare $20 08/01/2011 Southern Diagnostic Laboratories, LLC Solstas Lab Partners Medical Laboratory Services - 07/31/2011 Tw o Assisted Living Units Communities Emeritus Corp. (NYSE:ESC) Assisted Living Facilities and Services $41 07/29/2011 Arrow Medical Supply, Inc. Spectrum Surgical Instruments Corp. Healthcare Distributors - 07/29/2011 Augusta Laboratory, Inc. US Clinical Laboratories, LLC Medical Laboratory Services - 07/29/2011 Salar, Inc. Transcend Services, Inc. (NasdaqGS:TRCR) Health Care Technology $11 07/29/2011 Angelini Labopharm LLC Angelini Group Healthcare Distributors - 07/29/2011 HearUSA Inc., Substantially All Assets Siemens Hearing Instruments, Inc. Hospitals and Healthcare Centers $109 07/29/2011 Nine Senior Living Communities Senior Housing Properties Trust (NYSE:SNH) Assisted Living Facilities and Services $481 07/28/2011 Hearthstone Senior Services, L.P. Senior Care, Inc. Assisted Living Facilities and Services - 07/28/2011 Tomball Regional Medical Center Community Health Systems, Inc. (NYSE:CYH) Hospitals and Healthcare Centers - 07/27/2011 NorthWorks Occupational Health LLC U.S. Healthw orks, Inc. Hospitals and Healthcare Centers - 07/27/2011 ES McKinney, LLC, The Chateau Holiday Retirement Corp. Assisted Living Facilities and Services - 07/26/2011 Outpatient Surgery of Del Mar, LLC - Hospitals and Healthcare Centers - 07/26/2011 CQI Solutions, Inc. NextGen Healthcare Information Systems, Inc. Health Care Technology - 07/25/2011 Penrod Medical Equipment, LLC - Healthcare Distributors - 07/25/2011 Accelerated Rehabilitation Centers, Ltd. OMERS Private Equity Hospitals and Healthcare Centers - 07/25/2011 BIT MedTech operation Source Scientific, LLC Healthcare Equipment and Supplies - 07/22/2011 Henning & Cole Therapy Associates, Ltd. LifeBridge Health, Inc.; Physiotherapy Hospitals and Healthcare Centers - 07/21/2011 Central Kentucky Mobility, LLC United Seating & Mobility, LLC Healthcare Equipment and Supplies - 07/21/2011 Vitalize Consulting Solutions, Inc. SAIC, Inc. (NYSE:SAI) Health Care Technology $190 07/21/2011 athenacoordinator athenahealth, Inc. (NasdaqGS:ATHN) Health Care Technology $36 07/20/2011 Strata Decision Technology, LLC Veronis Suhler Stevenson Health Care Technology - 07/19/2011 Bioptics, Inc. Faxitron Bioptics, LLC Healthcare Equipment and Supplies - 07/19/2011 Alliance Medical, Inc. Bound Tree Medical, LLC Healthcare Distributors - 07/19/2011 Estech, Cannulae Product Line Sorin SpA (BIT:SRN) Healthcare Equipment and Supplies - 07/19/2011 ASG Medical Systems, LLC SYNEO, LLC Healthcare Equipment and Supplies - 07/19/2011 Endoscopic Technologies, Inc., Cannulae Sorin SpA (BIT:SRN) Healthcare Equipment and Supplies - 07/18/2011 TREK Diagnostic Systems, Inc. Thermo Fisher Scientific, Inc. (NYSE:TMO) Healthcare Equipment and Supplies - 07/18/2011 Align Netw orks, Inc. General Atlantic LLC Managed Healthcare - 07/15/2011 North Florida Acute Care Specialists, LLC IPC The Hospitalist Company, Inc. Hospitals and Healthcare Centers - 07/14/2011 Webmedx, Inc. Nuance Communications, Inc. Health Care Technology - 07/14/2011 Coast To Coast Physicians Alliance, P.A. IPC The Hospitalist Company, Inc. Managed Healthcare - 07/13/2011 Sunrise of Fox Chapel and Sunrise of Cranberry Concordia Lutheran Ministries Assisted Living Facilities and Services - 07/13/2011 PartnerMD, PC Markel Ventures Medical Laboratory Services - 07/12/2011 Eastw ind Surgical, LLC Meridian Surgical Partners, LLC Hospitals and Healthcare Centers - 07/12/2011 Tri Quality, Inc. Otto Bock HealthCare LLP Healthcare Equipment and Supplies - 07/11/2011 Nextw ave Diagnostic Laboratories, LLC and Solstas Lab Partners Medical Laboratory Services - 07/11/2011 Multimodal Technologies, Inc. MedQuist Holdings Inc. (NasdaqGM:MEDH) Health Care Technology $133 07/11/2011 Coral Blood Services, Inc., Blood Cell Collection The American National Red Cross Medical Laboratory Services $3 07/10/2011 Vetstreet Vicar Operating, Inc. Health Care Technology $146 07/08/2011 Broadmeadow Investment and Renaissance Sabra Health Care REIT, Inc. (NasdaqGS:SBRA) Assisted Living Facilities and Services $98 07/08/2011 Arrow head Electronic Healthcare, LLC Bracket Health Care Technology - 07/07/2011 QN Diagnostics, LLC NuRx Pharmaceuticals, Inc (OTCPK:NUXP) Healthcare Equipment and Supplies - 07/07/2011 Rehab Specialties Inc. United Seating & Mobility, LLC Healthcare Distributors - 07/07/2011 PEAK Surgical, Inc. Medtronic, Inc. (NYSE:MDT) Healthcare Equipment and Supplies $118 07/07/2011 Salient Surgical Technologies, Inc. Medtronic, Inc. (NYSE:MDT) Healthcare Equipment and Supplies $496 07/06/2011 Primedoc Management Services, Inc. Eagle Hospital Physicians LLC Managed Healthcare - 07/06/2011 Portfolio of Six Assisted Living and Dementia Harrison Street Real Estate Capital, LLC; Assisted Living Facilities and Services $62 07/05/2011 Healthcare Innovative Solutions, Inc. Beacon Partners Inc. Health Care Technology - 07/04/2011 Ansell Sandel Medical Solutions LLC Ansell Ltd. (ASX:ANN) Healthcare Equipment and Supplies $14 07/02/2011 Immucor Inc. TPG Capital Healthcare Equipment and Supplies $1,642 07/01/2011 Kearsley Retirement Community Tryko Partners Assisted Living Facilities and Services - 07/01/2011 Ethos Assisted Living, Tw o Kentucky Assisted Senior Care, Inc. Assisted Living Facilities and Services $23 07/01/2011 Olympus Endo Technology America Inc Gyrus ACMI, Inc. Healthcare Equipment and Supplies $60 07/01/2011 Advanced Physical Therapy PC ATI Holdings, LLC Hospitals and Healthcare Centers - * Includes transactions occurring within segments of the NCA Universe Page 34 of 40

40 Healthcare Industry Transactions * (continued) Announced Transactions Number of Transactions Announced # of Deals Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Value of Transactions Announced 12,000 10,000 $ in Millions 8,000 6,000 4,000 2,000 0 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 * Includes transactions occurring within segments of the NCA Universe Page 35 of 40

41 General Distressed Market Indicators Business Bankruptcy Filings 18,000 16,000 14,000 12,000 10,000 8,000 Bankruptcy Reform Chapter 7 Business bankruptcy filings totaled 52,134 in the 12 month period ending June 30, 2011, down 13% from the 59,608 business bankruptcies filed during the previous year. 6,000 4,000 2,000 Chapter 11 0 Chapter 12/13 Source: Federal Judiciary U.S. Speculative Grade Default Rate Versus Distressed Credit Ratio The rising distress ratio reflects an increased need for capital and is typically a precursor to more defaults if accompanied by severe and sustained market disruption. Currently, the variability in the distress ratio, along with various other economic, financial, and credit variables, points to a mixed outlook for the default rate. Source: Standard and Poor s U.S. Distressed Debt Monitor, September 30, 2011 Page 36 of 40

42 Distribution of Standard and Poor s Distress Ratio by Industry Source: Standard and Poor s U.S. Distressed Debt Monitor, September 30, 2011 Institutional Loans That Have Defaulted During 3Q11 Issuer Industry Deal Date Default Date Total Initial Amount Initial Institutional Amount Graceway Pharmaceuticals Healthcare Apr-07 Sep-11 $ 680 $ 650 Source: Standard & Poor s LCD 3Q11 Institutional Loan Default Quarterly Review Page 37 of 40

43 Healthcare Distressed News Third Quarter 2011 September 28, 2011 Pelikan Technologies, Inc. filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the Northern District of California, San Jose. The debtor listed assets below $0.05 million and liabilities worth $13.57 million. The unsecured creditors include Clarus Lifesciences I, L.P., Commerzbank AG, DLA Piper US LLP, Global Life Science Ventures, Goodwin Procter LLP, HBM BioVentures AG, Lombard Odier Darier Hentsch & Cie, Paul Hartmann AG, Sheppard, Mullin, Richter & Hampton LLP and Walker Informatics GmbH. September 19, 2011 Peninsula Hospital and its affiliate, Peninsula General Nursing Home Corp. which does business as Peninsula Center for Extended Care & Rehabilitation filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court The company listed total assets of $34.6 million and $70.8 million in liabilities, as of May 31. August 16, 2011 Otero County Hospital Association, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Mexico. The debtor listed its assets in the range of $100 million to $500 million and liabilities in the range of $50 million to $100 million. The largest unsecured creditors include EmCare, Inc., Cerner Corporation, Cardinal Health, Inc., Universal Hospital Services Inc., Public Service Company of New Mexico, Airgas Inc., Energy Control Inc., MileStone Healthcare, Inc., Howmedica Osteonics Corporation and Gulf Coast Pharmaceuticals, Inc. August 16, 2011 Hart Security Holdings Limited, along with a group of creditors filed an involuntary petition for liquidation under Chapter 7 against CyberMDx, Inc. in the U.S. Bankruptcy Court for the District of Delaware. The total claim amount of the petitioning creditors was $1.07 million. August 16, 2011 MDG Medical Inc. filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the Northern District of Ohio. The debtor listed its assets of $1.29 million and liabilities of $20.29 million. The largest unsecured creditors include Point to Point, Inc., Shemer Metal Works Ltd, I. Sherman Electronic Packaging Ltd, Lasalle General Hospital, McDonald Hopkins Co. LPA, Morrison Cohen LLP, InovateIT, Morris, Nichols, Arsht & Tunnell LLP and Duff & Phelps, LLC. July 1, 2011 Quincy Medical Center filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the purpose of consummating a sale of its assets on a going concern basis to Steward Health Care System. Page 38 of 40

44 Notes Certain industry participants were excluded from this newsletter due to either a lack of trading volume, a lack of available financial information, a bankruptcy filing or a change in their business plan. Enterprise Value (EV) = Common equity value + preferred equity + debt cash & short term investments. EBITDA = Earnings before interest, taxes, depreciation and amortization. EBIT = Earnings before interest and taxes. YTM = Yield to Maturity. EV multiples are based on the book value of the companies debt and not current trading volume. The numbers presented in this report have been adjusted to exclude non recurring and extraordinary items, net of taxes. NA = Not available. Sources: Capital IQ, Bloomberg, company 10 K, 10 Q and 8 K SEC filings, annual reports and press releases. Any public companies chosen for the NCA Universe are companies commonly used for industry information to show performance within a sector. They do not include all public companies that could be categorized within the sector and were not created as benchmarks; they do not imply benchmarking and do not constitute recommendations for a particular security and/or sector. The charts and graphs used in this report have been compiled by Navigant Capital Advisors solely for purposes of illustration. Subscription Form Please add my name to the Quarterly Dialogue distribution list Please remove my name from the Quarterly Dialogue distribution list Please correct my information on the Quarterly Dialogue distribution list Name Title Company Address City, State, Zip Phone E mail Please fax this completed form to Gia Lewis at (404) Page 39 of 40

45 For further information on any of our services, please contact one of the following: Investment Banking» Merger, acquisition and divestiture advisory services» Transaction structuring and execution» Institutional debt and equity private placements» Corporate development services, including strategy formulation and target identification» Capital markets advisory services Contact Edward Casas at or Restructuring» Capital & Operating Restructuring» Distressed Asset Sales & Recapitalizations» Bankruptcy Advisory Support» Interim & Crisis Management» Creditor Rights Advisory Services Contact Edward Casas at or Valuation» Financial & Regulatory Reporting» Fairness / Solvency Opinions» Tax (IRC Section 382, 338, 280g, etc.)» Fresh Start Accounting Contact Richard Hitt at or [email protected] Financial Risk Management» Credit Risk» Market Risk» Asset / Liability & Interest Rate Risk» Operations Risk Contact Edward Casas at or [email protected] About Navigant Capital Advisors Navigant Capital Advisors is the dedicated corporate finance business unit of Navigant Consulting, Inc. (NYSE: NCI). Navigant Capital Advisors serves the investment banking and private equity, restructuring and valuation needs of companies, private equity groups, lenders and other creditor constituencies. The firm arranges private placements of debt and equity, advises on mergers and acquisitions, as well as initiates divestitures for the owners of businesses across a broad range of industries. The firm also represents borrowers, secured lenders and other creditor constituencies in connection with financial and operating restructurings. Finally, we provide transactional valuations, fairness opinions and other financial reporting and compliance services to companies and their boards. Offices Atlanta, GA* Austin, TX Baltimore, MD Boston, MA Burlington, MA Chicago, IL* Dallas, TX Denver, CO Detroit, MI Evanston, IL* Fairfield, CT Hong Kong Houston, TX Irvine, CA Lawrenceville, NJ Los Angeles, CA Miami, FL Montreal, Quebec New York, NY* Ottawa, Ontario Palo Alto, CA Philadelphia, PA Phoenix, AZ Pittsburgh, PA Princeton, NJ Quebec City, Quebec Rancho Cordova, CA Sacramento, CA San Francisco, CA Seattle, WA Shanghai Singapore Tampa, FL Toronto, Ontario United Kingdom Vienna, VA Washington, DC Westbury, NY *Broker-dealer offices registered with FINRA. Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses. Page 40 of 40