33rd Annual J.P. Morgan Healthcare Conference Jim Skogsbergh President and Chief Executive Officer Lee B. Sacks, M.D. Executive Vice President and Chief Medical Officer Dominic J. Nakis Chief Financial Officer and Treasurer San Francisco, California January 12, 2015

The following material and presentation contains information which is forward looking within the meaning of federal securities law. These forward-looking statements are based on the current plans and expectations of Advocate Health Care Network (“Advocate”) that, although believed to be reasonable, are subject to a number of known and unknown uncertainties and risks inherent in the operation of health care facilities, many of which are beyond Advocate’s control, that could significantly affect current plans and expectations and Advocate’s future financial position and results of operations. These forward-looking statements speak only as of the date made. Investors are cautioned not to unduly rely on such forward-looking statements. This presentation should be reviewed in conjunction with Advocate’s December 31, 2013 and September 30, 2014 continuing disclosure reports.

Introduction and Advocate Overview Jim Skogsbergh President and Chief Executive Officer

Hospitals (12) 4 teaching 1 children's 1 critical access 5 level 1 trauma centers Physicians 1,350 employed/affiliated 5,175 APP 6,400 Medical staff Post-acute Home health, hospice, LTAC & palliative care 33,400 associates $5.3B total revenue 17.8% market share Advocate Health Care

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Advocate Medical Staff ~ 6,400 Advocate Physician Partners ~ 5,175 Aligned ~ 3,825 Employed /Affiliated ~ 1,350 Pluralistic Physician Approach

Silver Cross Partnership NorthShore Merger Affiliation and Merger

Silver Cross - An Innovative Partnership Joined Advocate Physician Partners Expands Advocate’s geographic coverage Silver Cross physicians complement Advocate Physician Partners Provides Silver Cross access to contracts and population health expertise. Silver Cross remains an independent entity; financial statements not consolidated into Advocate. $300 million revenue 289 licensed beds 19,000 capitated lives 300 physicians 10 employed physicians

NorthShore Merger One board and management team Strategic direction Single signature managed care contracting Consolidated financial statements and system-wide capital allocation Combined obligated group planned

NorthShore Merger Objectives & Benefits Increase competition by dramatically changing the way that managed care products are constructed and sold in the Chicago area. Population Health Management and Clinical Integration New Health Plan Products Opportunities for Self-Insured Employers Broad and Complementary Geographies

Market Share Q2

Strong Financial Position

Advocate & NorthShore Alignment Values Outstanding quality/reputations Highly integrated delivery systems with large employed medical groups Strong management and governance teams Excellent teaching and research capabilities

AdvocateCare® Advancing Value Based, Coordinated Care Lee B. Sacks, M.D. Executive Vice President and Chief Medical Officer

Strong Physician Engagement Advocate Medical Group BroMenn PHO Christ PHO Condell PHO Dreyer Medical Group Good Samaritan PHO Illinois Masonic PHO Lutheran General PHO Good Shepherd PHO To drive improvement in health outcomes, care coordination and value creation through an innovative and collaborative partnership with our physicians and the Advocate System. Sherman PHO Silver Cross PHO South Suburban PHO Trinity PHO Future Medical Groups Future PHOs

Population Health Management (“PHM”) PHM is the coordination or management of medical care delivery to a population to improve clinical outcomes at a lower total cost of care. Successful PHM is a key means by which to achieve the “Triple Aim”: 1.Improving the patient experience. 2.Improving health outcomes. 3.Reducing the total cost of care. PHM and aligned incentives are essential components for taking more financial risk.

Reimbursement Model Shift

Current Value Based Agreements ContractLivesTotal Spend Commercial388,000$1.5 B Medicare Advantage35,000$0.3 B Advocate Employee26,000$0.1 B Medicare ACO137,000$1.7 B Medicaid ACE62,000$0.2 B Total648,000$3.8 B 14

$2,000/case decrease in SNF costs Medicare Shared Savings Program costs below benchmark PPO trend in cost of care is 1.4% below market Over 1 million individuals in disease and prevention registries Value Based Agreement Results

Tactics for Success Tactics are needed for the entire population not just the 5% poly-chronic to move the mean Enhance focus on ambulatory care Adjust skill mix of the care team Benefit Plan design is essential Behavioral health integration Leverage “Big Data”

Shared Savings is a transition model Well positioned for managed Medicaid Medicare Advantage is opportunity for future growth Value/Narrow Network Products for Public/Private Exchanges Going Forward…

Financial Performance Dominic J. Nakis Chief Financial Officer and Treasurer

Strong Operating Performance 25 Note: Operating income and operating margin for the nine months ended September 30, 2014 are not necessarily indicative of the results that may be experienced during the year ending December 31, //

Consistently Solid Cash Flow 25 // Note: Cash generated from operations and operating cash flow margin for the nine months ended September 30, 2014 are not necessarily indicative of the results that may be experienced during the year-ending December 31, 2014.

Diversified Investment Portfolio 27 // Note: The 2014 Q3 YTD investment yield is not annualized. Both investment income and yield are net of fees. Expected return of 7.2%. Risk/return ratio at 0.76.

Debt Profile = Low, Level and Long* Maximum Annual Debt Service: $90.2 million Tax-exempt debt is $1.5 billion, average annual debt service is generally level through 2038 at $90 million and average life is 19 years. * Debt profile as of December 18, 2014.

Well Diversified Debt Portfolio* Underlying Mix Product Mix Liquidity Mix * Debt portfolio as of December 18, 2014.

Strong Coverage and Capitalization // 31 Note: 2014 Q3 YTD is a rolling twelve month period.

Strong Cash to Debt Ratio 32 //

Substantial Liquidity Position 34 //

Well Funded Pension Plans 33 //

Large Capital Commitments Past 3 Years 35 //

Summary  National leader in: –Health outcomes and safety –Value based health care  Metro Chicago market share leader and brand strength  Growth through selective acquisitions and ability to integrate new hospitals and physicians  Pluralistic approach to physician relationships coupled with a large and growing employed medical group  Balance sheet strength and solid operating performance  All of above reflected in our bond ratings of Aa2/AA/AA (M/S&P/F), with stable (M/F) and positive (S&P) outlooks 42

Disclosure Audited financial statements, quarterly reports along with management’s discussion and analysis and the annual continuing disclosure report are available on the Advocate, Digital Assurance Certification, LLC and Municipal Securities Rulemaking Board websites. To view online visit:

Thank you!