1. CONGRATULATIONS WSHMMA! 1964 – 2014 50 YEARS OF GROWTH AND SUCCESS!

2. HEALTHCARE SUPPLY CHAIN PAST PRESENT PRESENTFUTURE Presented by Jack Gallagher April 17 th, 2014

3. THIS MATTERS TO YOU! AND IT’S URGENT

4. LOOK CLOSELY & CONNECT THE DOTS WHERE DID YOU START? WHERE ARE YOU NOW? WHERE ARE YOU GOING?

5. THE PAST ANCIENT HISTORY: 1964 – WSHMA IS BORN CIVIL RIGHTS “RIGHT” TO HEALTHCARE VIETNAM WAR MASSIVE INFRASTRUCTURE LOW TECH HEALTHCARE FREE MONEY SPACE AGE INFANCY

6. “BASEMENT MENTALITY”

7. THE TIPPING POINT – INFLATIONARY COST SPIRAL Healthcare Cost per Capita Military Spending

8. SO WHAT WENT WRONG? 15%+ INFLATION SHIFT IN PERCENTAGE OF GDP FROM MILITARY TO HEALTHCARE NO TECH BECOMING HIGH TECH OUR PROMISE THE FIX? CUT COSTS THE METHOD? DRGs

9. AND HERE WE ARE TODAY (THE PRESENT) CONFLICTING REGULATIONS COSTS CONTINUE TO ESCALATE CONFUSION HEALTHCARE TECH WARS

10. AND HOW ARE WE DOING? Healthcare Cost per Capita Military Spending

11. SOME ARE REACTING SOME ARE RECREATING ALL ARE WORRIED FRANKLY, IT’S A MESS!

12. THE WORLD’S VIEW NOW

13. AND THE ANSWER IS…..CUT COSTS (AGAIN) BUT HIGH TECH DEMANDED DOMINANCE & COST OF IT STAFFING DEMANDS AGING FACILITIES / OBSOLESENCE DRUG SHORTAGES CLINICAL SPECIALTIES ACCOUNTABILITY REQUIREMENTS DELAYED FACILITY IMPROVEMENTS SUPPORT STAFF CUTS MERGERS, AFFILIATIONS, BUY OUTS COLLECTIONS ACTIVITY MARKETING PRIVATIZATION BUSINESS MODELING

14. BOARDS & “C” SUITE TOP CONCERNS NOW ACCESS TO CAPITAL MERGERS & ACQUISITIONS PHYSICIAN RECRUITMENT COMPLIANCE ISSUES REVENUES CONSUMERISM / TRANPARENCY RAPID TECHNOLOGY GROWTH DEMAND FOR LATEST TECHNOLOGY DRUG SHORTAGES COMPETITIONAL THREATS LONG TERM CARE (BOOMERS)

15. NOT WHAT ARE THEY NOT LOOKING AT?

16. THE FUTURE YOUR FUTURE YOUR OPPORTUNITY!

17. LOOK AROUND YOU & CONNECT THE DOTS THE PAST: LOW TECH COSTLY INEFFECTIVE CONTROLS THE PRESENT: HIGH TECH COSTLY MORE CONTROLS INEFFECTIVE OUTCOMES COMPETITION CONSOLIDATION THE FUTURE: THE FUTURE: CONSUMERISM CONSUMERISM SUPER TECH SUPER TECH BUSINESS MODELS BUSINESS MODELS

18. LOOK AT CONSUMERISM DEMAND FOR HIGH QUALITY DEMAND FOR LOW COST DEMAND FOR ACCESS DEMAND FOR TRANSPARENCY MEANS FOR YOU: DELIVER RELIABLE PRODUCTS AND SERVICES AGGRESSIVE COST AND SERVICE CONTRACTING STRATEGIC SOURCING LEAN DISTRIBUTION STATISTICAL FORECASTING INTERNATIONAL MARKET SAVVY SOUNDS LIKE: COSTCO TOYOTABOEINGAMAZON DELL NORDSTROM FORD

19. LOOK AT SUPER TECHNOLOGY ARTIFICIAL IMPLANTS ROBOTICS DRUG TREATMENTS DNA MANIPULATION ARTIFICIAL INTELLIGENCE NON INVASIVE TREATMENTS MEANS FOR YOU: TECH PURCHASING FAST INNOVATIONS FAST OBSOLESENCE SERVICES OVER SUPPLIES WORLD MARKETS DECENTRALIZED TREATMENT (VIRTUAL LOCATIONS) SOUNDS LIKE: MICROSOFT STAR WARS I, ROBOT WEIRD SCIENCE SONYFACEBOOKAPPLE GOOGLE

20. LOOK AT BUSINESS MODELS PROFIT & LOSS STRATEGIC PARTNERING MARKETING FINANCIAL MANAGEMENT EXPERT LOGISTICS CUSTOMER SATISFACTION COMPETITIVE DISTINCTION MEANS FOR YOU: COST / BENEFIT RETURNS STRATEGIC PURCHASES & SOURCING LEAN LOGISTICS & OPERATIONS MARKET RESEARCH / KNOWLEDGE SALES & MARKETING INFLUENCES STOCK HOLDERS RETURN SOUNDS LIKE: ANY OTHER SUCCESSFUL BUSINESS IN THE WORLD!

21. THIS MATTERS TO YOU! AND IT’S URGENT NOW!!

22. PREPARE FOR YOUR FUTURE NOW THINK “C” SUITE ESTABLISH YOUR NICHE AS A LEADER ESTABLISH SUPPLY CHAIN AS “STRATEGIC IMPERATIVE” vs “FUNCTIONAL REQUIREMENT” PREPARE YOUR CREDENTIALS LOOK OUTSIDE HEALTHCARE THINK AND GROW OUTSIDE THE BOX

24. YOUR FUTURE IS UP TO YOU