1. Cost-Plus Hospital Pricing HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: tference@hrmdco.comtference@hrmdco.com Website: www.hrmdco.comwww.hrmdco.com

2. Cost Plus Hospital Pricing Hospital-related costs typically represent 45% of total healthcare costs For hospitals, billed charges for the same procedures are not the same for all networks and/or carriers thereby leaving room for manipulation of network discounts Under this repricing system, each hospital-related claim is individually negotiated to be on a cost-plus basis not a “billed charge minus” basis. National and up-to-date databases are used to develop benchmark pricing onto which a fair profit margin is added for the hospital provider. There is 95% hospital provider acceptance of the negotiated rate as it is typical higher than what the networks pay under the provider contracts For hospital related claims, equivalent discounts off billed charges under this pricing method equate to minus 64% on average vs. minus 33% for typical major U.S. insurance carrier’s PPO

3. Actual Example-PPO Network vs. Cost Plus $1,880,795 $1,130,134 41.33% $ 299,602 77.83% 377% difference

4. Next Steps This product/service is contained in the HR Specialty Products & Services Catalogue™ Operational level details about this particular service provider can be obtained in conference with the vendor The HR Mining &Distribution Co. is an independent and contracted representative of the vendor Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com Thank you for your potential interest in this fresh thinking