1. LBJ SCHOOL OF PUBLIC AFFAIRS FEBRUARY 2010 PRESENTED BY: ANNE P. MESSBARGER-EGUIA CHRISTUS Health International Ministries

2. Introduction to CHRISTUS Health Catholic faith-based health system Located in 60 cities in Texas, Arkansas, Iowa, Louisiana, Missouri, Georgia, New Mexico and Utah in the U.S. and Chihuahua, Coahuila, Nuevo Leon, Puebla, San Luis Potosi and Tamaulipas in Mexico  Almost 350 medical facilities (31 acute care hospitals)  5,400+ staffed beds  175 clinics and outpatient centers  30,000+ employees  9,000 physicians  $4.5 billion total assets

3. Mission and Vision Mission: To extend the healing ministry of Jesus Christ Vision: CHRISTUS Health, a Catholic health ministry, will be a leader, a partner and an advocate in the creation of innovative health and wellness solutions that improve the lives of individuals and communities so that all may experience God’s healing presence and love.

4. CHRISTUS Health Locations

5. Long Term Strategy Realign the Portfolio to better align with needs of the community and to create stronger more stable structures Recreate CHRISTUS Health for the Base of the Pyramid population Develop aggregator models in order to provide seamlessly integrated services to address the needs and expectations of our customers Strengthen and expand our international ministry Harness the new power of technology

6. Why International? Excellent opportunity for expansion of our ministry Strong partnership model (low risk) Less regulated/ham-strung environment Access to excellent technology Innovation lab

7. Our Presence in Mexico

8. 7 Hospitals 7 Large Indigent Care Clinics Non-Hospital Services  30 Convenient Clinics  The most sophisticated ambulance service in Monterrey  2 Rehab Hospitals  Behavioral health/addictionservcies  2 hyperbaric chambers

9. Seven Acute Care Hospitals Monterrey :  CM Hospital Alta Especialidad, Monterrey  CM Hospital Conchita, Monterrey  CM Hospital Sur, Monterrey CM Hospital Saltillo CM Hospital Del Parque, Chihuahua CM Hospital Reynosa CM Hospital UPAEP, Puebla

10. Acute Care Capacity Beds496 ICU Beds45 NICU Beds57 Intermediate Care Beds26 Surgical Suites33 Hemonc Suites4 Trauma Rooms9 Delivery Rooms12 C-Section Rooms15

11. Seven Indigent Care Clinics Mission-based High-quality low-cost medical services. Transformative for communities we serve We serve more than 140,000 people annually Locations:  Monterrey (2)  Huasteca  Potosina  Saltillo  Chihuahua

12. Thirty Convenient Clinics Extensive primary care servcies. Convenient care at low price. Located in Monterrey, Saltillo, Chihuahua & Reynosa. Rapid growth strategy Very strategic role in our portfolio expansion

13. Medical Staff Excellent, proven medical staff, many of whom have been trained in US or Europe Formal credentialing process and re-credentialing (every three years) Medical leadership in 14 committees (85 members) by specialty and ethics that report to the exectuive.

14. Our Patients We care for more than 800,000 patients every year Consistently high patient satisfaction scores We have agreements with nearly every major insurance company in the country Medical travel/tourism services

15. Accreditations and Certifications

16. Clinical Quality Outcomes See Handout

17. Medical Travel Strategy Currently minor component of strategy Much potential for growth Lacking expertise Avg 6 US patients/day  Bariatrics  cardiology

18. Cost Comparison

19. Opportunities/Challenges Opportunities:  Potential to grow medical travel business significantly  Good basic infrastructure for continuity of care  US-based system is less “foreign” to medical tourists  Excellent quality/service indicators and awards Challenges  Current strategic priority is in local market growth and expansion  Need to build volume in specific procedures in target facilities in order to ensure quality  US physician resistance – Local market politics  CM lacking in experience in Medical Travel model  Many questionable players in the market  Border violence is posing a significant threat  Reynosa  Other markets

20. Medical Travel Target in Future Funded uninsured High deductible population Privately insured – via contracts with insurer Other