Par8o Insights on Patient Referrals: It (Currently)Takes an Army

1. Insights on Patient Referrals: It (Currently)Takes an Army

2. About par8ois named after the Italian economist, Vilfredo Paretowho first defined the concept of a “Pareto Efficiency” in which a system is able to maximize resource utilization for each and every participant. par8oseeks to introduce Pareto efficiency to the healthcare industry, improving patient choice and access to healthcare while lowering costs. 2011 Confidential | 2

3. par8o surveyed 200 physicians…You won’t believe what they had to say about patient referrals… 2011 Confidential | 3

4. par8o, Inc. Thank You media@par8o.com 2011 Confidential | 4

5. Medicine Is a Hectic Business 49% of physicians surveyed see more than 100 patients each week and only 14% see fewer than 50 Patients Per Week 37% 30% 19% 12% 2% 25 Or Fewer Patients 26 to 50 51 to 100 101 to 150 151+ Per WeekNotes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q4. On average, how many patients do you see per week? 2011 Confidential | 5

6. Referrals Are the Business 96% of physicians see at least one referred patient each week and 30% see 41 or more referred patients each week Referrals Per Week 17% 17% 15% 14% 13% 12% 7% 4% 0 Referrals Per 1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+ WeekNotes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q5. On average, how many of your patients per week are referrals from other physicians? 2011 Confidential | 6

8. Small Office, Big Staff72% of physicians surveyed work in practices with 20 or fewer physicians, but 70% work in practices with at least 6 staff members – practices might be small to mid-sized, but staff sizes are medium to large Practice Size Admin Staff Size 45% 28% 26% 25% 23% 21% 19% 9% 4% 1 to 5 MDs 6 to 10 11 to 20 21 to 100 101+ 1 Staff Member 2 to 5 6 to 10 11+Notes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q1: How many physicians are in your medical practice? (Including you) Q3. How many non-medical/administrative staff people are employed in your practice? 2011 Confidential | 8

9. Every Office Requires a Big StaffVery few practices are able to make it with just one staff member – even among the smallest practices, only 7% employ just one administrative person Admin Staff Size 9% 39% 39% 53% 11+ 70% 6 to 10 15% 94% 2 to 5 27% 44% 39% 1 Staff 24% Member 20% 7% 7% 5% 6% 1 to 5 MDs 6 to 10 11 to 20 21 to 100 101+ Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists Q1: How many physicians are in your medical practice? (Including you) Q3. How many non-medical/administrative staff people are employed in your practice? 2011 Confidential | 9

10. More Staff Than Doctors About half of small and mid-sized offices have more staff than physicians 1-5 6-10 11-20 PHYSICIAN PHYSICIAN PHYSICIAN OFFICES OFFICES OFFICES 48% 55% 53% employ a employ a employ a staff of 6 or staff of 6 or staff of 11 more more or moreNotes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q1: How many physicians are in your medical practice? (Including you) Q3. How many non-medical/administrative staff people are employed in your practice? 2011 Confidential | 10

12. Specialties Are Built on ReferralsAll specialists surveyed see at least one referred patient each week and 44% see 41 or more referrals in a week, while 49% of PCPs see fewer than 10 referred patients each week Referrals Per Week PCPs Specialists 29% 21% 19% 17%18% 18% 15% 13% 12% 9% 9% 9% 4% 5% 3% 0% 0 Referrals 1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+ per Week Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists Q5. On average, how many of your patients per week are referrals from other physicians? 2011 Confidential | 12

13. Specialties Require ManpowerMore referrals mean more staffing needs – 49% of specialists work in practices with 11 ormore staff members and none of the specialists surveyed work in practices with just one administrative employee Admin Staff Size PCPs Specialists 49% 41% 26% 27% 26% 25% 7% 0% 1 Staff Member 2 to 5 6 to 10 11+Notes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q1: How many physicians are in your medical practice? (Including you) Q3. How many non-medical/administrative staff people are employed in your practice? 2011 Confidential | 13

15. Fewest Referrals in the South In the South, 77% of PCPs see 10 or fewer referrals each week, while in the East, only 29% of PCPs see 10 or fewer Referrals Per Week 5% 10% 10% 12% 18% 10% 29% 51+ 24% 36% 15% 12% 39% 18% 15% 31 to 50 29% 30% 11 to 30 43% 17% 60% 36% 38% 77% 1 to 10 33% 43% 15% 29% 0 Referrals 20% 27% per Week 14% 20% 11% 5% 6% 10% PCP Specialist PCP Specialist PCP Specialist PCP Specialist East Midwest South WestNotes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q5. On average, how many of your patients per week are referrals from other physicians? 2011 Confidential | 15

16. Few Referrals, Small Staff in the South In the South, where 57% of practices see 10 or fewer referred patients each week, offices are smallest, with 46% of practices employing only 2 to 5 administrative staff 38% of Midwestern offices employ 6-10 staff members 46% of Eastern 52% of offices in offices employ (38% of PCPs, the West employ 39% of specialists) 11+ staff members 11+ staff (43% of PCPs, members 48% of specialists) (70% of PCPs, 43% of specialists) 46% of Southern offices employ 2-5 staff members (53% of PCPs, 36% of specialists)Notes:Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists Q3. How many non-medical/administrative staff people are employed in your practice? 2011 Confidential | 16

18. Small Office, Big StaffThe amount of support staff required to run a physician practice is a sign of the extreme inefficiencies in the healthcare marketplace Par8o will change that The first step is Referrals. Reinvented.

19. par8o, Inc. Thank You Learn more:http://www.par8o.com 2011 Confidential | 19