1. 1 DEA CSOS Pilot Conference Call August 16, 2002

2. 2 Agenda nPilot Overview: Pilot Organization and Scope nPhase II: Results nPhase III: Philosophies/Goals nPhase III: Accomplished Milestones nPhase III: Proposed Participants nPhase III: Development Options nPhase III: Approach nPhase III: Timeline nPhase III: Where Do We Go From Here? nPhase III: Questions…

3. PHASEIssues & Success Factors 1 – Online Registration (Use DEA-provided activation data to obtain a digital certificate w/ live data) n Technical interoperability nCertificate content review, field length analysis nCertificate portability nDocumentation (Complete and easy to use) 2– Application (Business completes and submits full CSOS enrollment application, DEA Adjudicates app.) n Application ease of use n Consistency with current processes nDEA Adjudication Processes nOrganizational oversight of enrollment/termination process 3 – Order Processing (Business generation, transmission and processing of orders) n Standards for digitally signed transactions n Cost nAddress Field / Record nTransaction integrity, certificate status, credential checks 4 – Reporting (Business generation of periodic CSOS reports) n Frequency n Format 5 – Auditingn Ensure that the business is storing order transactions in a DEA approved manner, and that they can be retrieved. Proposed Pilot Organization and Scope

4. 4 Phase II: Results n A total of 27 certificates were adjudicated with 20 certificates retrieved by CSOS participants and 5 completed test plans were received from AmeriSource-Bergen, McQueary Bros., North Carolina Mutual Drug, Mallinckrodt, and McKesson. nIssues identified during testing: l Notarization of both POA and Registrant was noted as potentially difficult l Bulk enrollment for organizations practicing central ordering would be very burdensome

5. 5 Phase II: Results continued nChanges to DEA Anticipated Standards and enrollment processes are being developed that address these issues, affording significant time savings to the applicant. l Bulk Enrollment will be allowed l CSOS Coordinator will serve as LRA (discussed in more detail at August 20, 21 meeting)

6. 6 Phase III: Philosophies/Goals nPhilosophies: l Divide and conquer l EDI 850-oriented, but not exclusive of other technologies l Evaluate anticipated standards nGoals l Leverage existing systems – complete gap analysis l Evaluate compatibility/impact on anticipated workflow l Identify anticipated production deployment costs l Identify cost savings - capture workflow time to complete

7. 7 Phase III: Accomplished Milestones nMilestones: 850 Transaction Sets Worksheets 850 committee decision on signature approach (external to orders vs. wrapped around orders) Future Process Flow Draft HDMA Survey to determine platforms planned and presently in use Pilot participants surveyed to determine trading partnerships/roles for Phase III testing. nWork In Progress: l Test framework under development.

8. 8 Phase III: Proposed Participants Team MembersRole Longs Amerisource Bergen Purdue Purchaser Supplier/Purchaser Supplier Endo McKesson (?) Purchaser Supplier NC Mutual Drug ? Needs Partner Purchaser? Supplier?

9. 9 Phase III: Participants continued Team MembersRole Mass. General Hospital Cardinal? Purchaser Supplier Grove Pharmacy ? McQueary Bros. Abbott? Mallinckrodt? Purdue? Purchaser Supplier/Purchaser Supplier Anda ? Needs Partner ? Purdue Mallinckrodt Purchaser Supplier

10. 10 Phase III: Proposed Participants continued nEndo will test revised enrollment process (CSOS Coordinator). nWal-mart testing bulk enrollments. Anyone else interested in testing automated bulk enrollment process (we can provide a VB script)? nCapital Returns– Test Returns with McQuery Bros.?

11. 11 Phase III Development Options: nOption One: Work with vendor/existing infrastructure l Advantages: Leverages existing infrastructure and tools – quicker time from test to implementation ID gaps in current implementation l Disadvantages: Availability of vendor software? nOption Two: Develop own code to generate or receive/validate 850. l Advantages: Some code available that can be “tweaked” l Disadvantages: Not working with existing infrastructure – may not get good idea of implementation costs nOption Three: Hybrid

12. 12 Phase III: Approach nDivide workflow into teams nSelect areas to work with partner l Team A: Purchaser: Test Objective 1: Key Exchange Process Test Objective 2: E-222 Generation Process Test Objective 3: Transmission Process Test Objective 6: Receiving Process l Team B: Supplier: Test Objective 4: E-222 Receipt Process Test Objective 5: Order Validation Process

13. 13 Phase III Timeline

14. 14 Phase III: Where Do We Go From Here? nCertificate Extension Revisions l Changes made to facilitate automatic certificate validation. l Download new certificate – simple 5 minute process - detailed instructions will be provided. l Developer’s will need certificate profile/extension information – will email and distribute at next week’s conference. n All “Purchasers” need revised certificate

15. 15 Phase III: Where Do We Go From Here? nDistribute Revised Test Objectives/Test Framework next week (Margaret) nTeams work with partners/vendors to develop project plan (plan of attack). l Which process(es) will you test? l What tools will you use? l What approach will you take? l Submit project plan to mleary@pec.com by Sept. 13, 2002.mleary@pec.com nCompiled results distributed to group/teleconference to discuss approx. Sept. 30, 2002

16. 16 Questions