ACL Laboratories A Current and Future View Barbara Bigler, President July 26, 2011

Overview My first six months ACL overview and “fun facts” Accomplishments first half of 2011 Where is this taking us? Questions / Comments / Rumors 2

A bit about me . . . The Biglers 3

Now, on to an ACL Overview 4

ACL Laboratories Core Service Area 5

ACL Governance 6

ACL Laboratories Organization Structure ACL Laboratories (“ACL”) is a joint management agreement for laboratory services between Aurora and Advocate Health Care systems Agreement signed in May 2000 Governed by Lab Oversight Committee ACL directly manages: 2 Central labs; 22 Hospital Rapid Response labs; 50+ Clinic based labs; 30 Patient Service Centers (draw locations) Does not include laboratory sites we service without staff on-site; i.e. Advocate BroMenn, Advocate Eureka, Aurora Psych, etc. No separate legal structure, tax ID or separate employees Staff employed by Aurora (1,397 FTE’s) and Advocate (1,125 FTE’s) 7

A2CL Services, LLC Organization Structure A2CL Services, LLC is the Commercial Laboratory (Outreach) jointly owned by Advocate and Aurora Formed in 2007 Equal membership units of Aurora Ventures and Advocate Network Services, Inc. (100 each) Purchases lab testing services from ACL Laboratories Independent clients account for 15% of total laboratory volume Separate tax ID For Profit Status Required to process Medicare/Medicaid billings for physician practices as performing laboratory (AMG & Lakeshore) Also markets & sells laboratory testing to non-affiliated entities Performs non-hospital billings (third party and direct client billings) for Outreach clients 8

Advocate Aurora 11 Hospitals 15 Hospitals 2 Children’s Hospitals ~3,361 Beds 5,600+ Physicians Advocate Medical Group Dreyer Medical Group Advocate Physician Partners 30,000 Employees $4.5 Billion Revenue Largest Health System in IL Aurora 15 Hospitals ~3,000 Beds 4,000+ Physicians Aurora Medical Group Aurora Advanced Medical Group Lakeshore Medical Group 30,000 Employees $4.0 Billion Revenue Largest Health System in WI 9

ACL Laboratories Profile One of the largest hospital system laboratories in the US Fifth largest operating expense compared to IL hospitals; second in WI Provides services to 26 Hospitals; 2 Central Laboratories; 110+ Clinic settings & Patient Service Centers (PSC) ACL if “pulled out” is a $2B company; generating $700M in new revenue for systems Saves an annual $54M due to lower RVU 2,500 Associates/Caregivers 82 Pathologists; MDP (IL) GLP (WI) 20M laboratory tests performed annually (50k a day) 4,000+ Clients outside of our systems Couriers: 80+ vehicles, > 3.6 million miles annually Client Services handles ~1000 in-bound calls day 10

Product Lines Hospital Services Ambulatory Services Nursing Homes Anatomic Pathology Forensic Toxicology Heavy Metal Testing Molecular Diagnostics Cytogenetics 11

Accomplishments in first half . . . (* just a portion of the great work) 12

Where is this direction taking us? 18

The future is here and how to be a part of it Pathology and Clinical Laboratory Medicine are pulled to the forefront of integrated patient diagnostic information (order, interpret, diagnose, recommend treatment options) An organization where: Physicians want to provide care Patients want to receive care Staff feel a sense of purpose, of doing worthwhile work and of making a difference High reliability organization (Hardwiring Excellence – Quint Studer) Advocate Experience / Patient Experience

Advocate and Aurora Health Care ACL exists to support Advocate and Aurora All decisions within ACL, should be driving us to the overall benefit of our 2 systems They drive our priorities too – even if that means pacing ourselves to them The patient’s physicians are looking to us for the integration of Pathology and Laboratory information – tell them what it means; help guide treatment plans The systems are looking to ACL to provide laboratory utilization information related to physician ordering practices - are the providers ordering the right tests in the right place? 20

Laboratory culture which displays high reliability performance in standard process and delivery of safe patient care Lean Root Cause Analysis (RCA) Rapid Improvement Events (RIE) CAP 15189 (ISO standards) ??? Standard process Consistent – reliable – accountable care Pathologists are central to our organizational success 21

What do you see the future being of Health Care? How can ACL best support you in this enhanced patient care and patient leadership role? 22

Question / Comments 23

Summary 24

ACL Strategic Priorities - Summary The Patients we serve and those caring for them Advocate and Aurora Health Care Pathologists providing patient diagnosis and integrated laboratory information (AP, Clinical, Molecular = Pathology) Staff is trained in a standardized way with supporting ongoing competency training ACL is seen as the provider of education and interpretation of laboratory information Laboratory culture which displays high reliability performance in standard process and delivery of safe patient care

Thank You 26