Approach To-Date: Siloed Practice vs. Site-of-Service ASC Practice Patient

Patient Emerging Approach: Structurally Aligned Under Single MSO MSO ASC Practice Patient

Why? Driven by Shared Strategic Interests MSO ASC Practice Shared Patient experience, quality of care & data Administrative service needs Growth & development - physician recruitment, succession planning, practice development

Complementary Value Propositions, Though Structural Challenges Remain ASC Practice Strategic Value High quality, low cost site-of-service Procedure quality and cost data Limited ancillary opportunity Demonstrable equity value via cash flow Management Companies Often managed Clean non-physician ownership / governance alignment Quality & Operations Highly regulated ASC-specific EMR Growth & Development Net recipient of volume growth Rigid restrictions limit practical growth investment Strategic Value Drive patient flow & relationship Data across holistic patient interaction Positioned for high quality, low cost ancillaries with scale + management Equity value achieved only at scale Management Companies Generally unmanaged Complex non-physician economic interest / governance alignment Quality & Operations Less regulated Practice-specific EHR Growth & Development Net driver of volume growth Flexible growth investment vehicle

Divisional Limited Liability Company ASC JV Models ASC Management Company MSO Private Equity Company Physician Holdco Drs. Health System 49% 67% 33% 51% JV LLC Health System establishes an LLC with contractual divisions or “cells.” Health System establishes de novo ASCs and/or acquires and adds on existing ASCs, and each ASC is operated through its own separate ASC division of Master ASC LLC. This model allows for different investors and ownership of each division, and an investor’s interests in a division track the profits and losses of that specific division/ASC. Drs. 20% 51% 51% 51% 49% Drs. Drs. 80% 51% 49% 49% 49% ASC 1 Division ASC 2 Division ASC 3 Division ASC 4 Division MASTER ASC LLC WITH SINGLE FEIN

ASC Management Company Private Equity Company “Value Add” Physician Group Patients Cases Health System Lift Loft ASC LLC ASC Management Company Capital Expertise in Operating Center Private Equity Company Multiple Monetization Opportunities Scaling Expertise MSO Consolidation Vehicle All non-medical Operations