Pivotal Financial Corporation aims to improve healthcare payments through innovation. It plans to create a payment platform and data repository to significantly reduce payment processing time and costs. Pivotal's strategy is to provide more transparent and integrated payment solutions than competitors to become the preferred payments partner for healthcare organizations. The company seeks to exploit emerging opportunities in healthcare financing and deliver new product capabilities through a flexible technology platform.

1. P ivotal Financial Corporation. innovation in healthcare payments Company Overview – Spring 2011 Privileged And Confidential Information

3. Pivotal Summary

5. Growth in Consumer Directed Healthcare Spend U.S. Benefit Card Spend 2008-2013 ($ in billions) 2008 2009 2010 2011 2012 2013 Source: Aite Group $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $0.7 $2.1 $4.5 $8.6 $14.9 $31.5 114% CAGR

6. Growth in Consumer Directed Healthcare Revenue Forecasted HSA Premium Revenue 2007-2014 ($ in billions) HSA Premium $300 $250 $200 $150 $100 $50 Source: Frost & Sullivan, January 2010 56% CAGR 10.8 16.3 29.1 53.2 95.0 144.4 183.0 243.5 2009 2010 2011 2012 2013 2014 2008 2007 Source: Aite Group

7. Healthcare Payments Are Expensive and Inefficient Member Receives Services Provider Service Claims Provider Bank Private Insurer Or Government Remittance Advice Healthcare’s Challenge Mean Processing Time – 53 days Mean Cost to Process Per Claim $21.45 Exceptions – 13% of all claims Source: Aite Group and Pivotal

8. Detailed Healthcare Payment Process Shows Enormous Complexity Member receives services Provider Service Practice Management Claims Private Insurer and government membership, billing managed care, medical mgmt and claims adjudication systems UB92 HCFA 1500 837 i/p/d Explanation of benefit (EOB) / check for manually submitted claims 27x/ 835 ERA Paid By Mail National Council For Prescription Drug Program HIPPA EDI Clearinghouse Paper RA and Check Lockbox Real time Point Of Service (POS) Transaction Eligibility Claims Status Customer Service Source: Aite Group/ Pivotal Financial Paper Member Service HIPPA EDI Clearinghouse ACH Makes co-payments only

9. Top Payment Pain Points Across Stakeholders Source: Aite Group 2010 Survey – Healthcare Industry Executives Payment Pain Point Providers Financial/ Banks Suppliers Inconsistent pricing X X Lack of knowledge on payment options X Longer payment collection cycle X Rising bad debt Delay in payment and cash flow issue X X Inconsistency in electronic payments acceptance X X Lack of automation X X Lack of standards X X Resistance from lobbyist to create improvements X X Lack of best practices X X X Increase in complexity due to sensitivity of HIPPA req. X X X

13. Healthcare Account Payment Processing Value Chain Plan Provider Third-Party Administration HSA/FSA Solutions Vendor Card Processor Issuer/Custodian United Health Group Exante Bank (United Health Group) Uniprise (TPA Owned by United) Blue Cross Blue Shield CIGNA, AETNA Others… BLUE BANK BLUE BANK) FIS WageWorks / DST U.S. Bank BofA, WellsFargo, BNYMellon, JPMorgan Chase, etc. Evolution Benefits, Montivano BofA, Wells Fargo, Mellon, JPMorgan Chase, etc. ADP, CompuLink, Benefit Concepts, CBSA Exante Bank (United Health Group) FDR, Tsys, Wildcard (eFunds), Fiserv

15. Pivotal Strategy Vision To significantly improve collection time and reduce cost per transaction by providing payment solutions with enhanced integration of settlement and information models . To reach this goal Pivotal is creating a payment data repository and payment platform which will drive improved collection time, reduce cost and improve transparency to medical associations and hospitals. Pivotal Strategy Improve Transparency Superior Integration and Functionality Enhance Efficiency Reduce Cost, Errors & Time To Process

18. Pivotal Strategy Is To Create More Compelling Solution Capability Capability Business Benefit A single process and platform approach to integrate information and settlement approaches to payments Drives more effective and less costly payments process Product builder and flexible product management tools Facilitates product innovation and rapid speed to market with new products Creation of PivotBase pricing tool to provide additional transparency to customers Provides consistent pricing information and improved transperency A component-based, service-oriented architecture that supports best-of-breed solutions Enables any-to-any integration and investment preservation

20. Healthcare Payment Solutions: Target Markets Health Plans Medical Associations Third Party Administrators Banks and Financial Institutions Hospitals P ivotal Financial Corporation. 1,634 4,211 Source: Frost & Sullivan, January 2010

25. Pivotal Implementation Timeline Further define plan and solution Complete legal requirements Product development Hire senior positions Complete US case studies Launch sales campaign Identify target industry publications for PR outreach and monitor calendars January March May July September November