“Life Support” To Keep Your IT Moving Forward

• Top 10, 2013 Healthcare Challenges

• Approaching Financial Challenges-What Are The Options?• Buying Out-Right

• Financing/Loan

• Lease

• Financial Alternatives To Keep Your IT Moving Forward• Bundling & Streamlining

• Supplementing/Augmenting Budge

2013 Factor Summary

• Healthcare industry fastest growing industry over the next decade

– Annual Growth Rate 3% Year over Year

• Financial challenges top the list

– Primary Factors

• Advances in Technology– Mobile devices

– Patient diagnostic equipment

• Healthcare Reform

• Affordable Care Act

Top 10 Healthcare Issues*7 out of 10 Directly Impact IT

1. Financial Challenges2. Patient Safety and Quality3. Healthcare Reform

Implementation4. Governmental Mandates5. Care for the Uninsured6. Patient Satisfaction7. Physician-Hospital Relations8. Technology9. Population Health

Management 10.Personnel Shortages

*American College of Healthcare Executives, Q1, 2013

Top 10 Financial Issues

1. Medicaid Reimbursement2. Government Funding Cuts3. Medicare Reimbursement4. Bad Debt5. Decreasing Inpatient Volume6. Increasing Costs For Staff, Supplies,

etc.7. Inadequate Funding For Capital

Improvements8. Other Commercial Insurance

Reimbursement9. Managed Care Payments10.Revenue Cycle Management

(converting charges to cash)

Summary: Dueling Priorities

• Accelerated Technological Advancements

• Manpower Shortages can’t Keep Pace To Demand

• Constrained Budgets

FINANCIAL OPTIONS

Financial Options

1. Buying Out Right

– Requires Cost Capitalization

– Allows for Equipment Depreciation

• Early years: Greater Profitability, Cash Flow, Financial Rations

– Greater Total Assets on Balance Sheet

• Favorable Solvency Ratios, EBIT, and Stockholder Equity

– Requires Self-Management of Equipment Warranties

• Requires Dedicated Manpower to Track, Manage, and Replace/Upgrade 1000’s of Devices

2. Financing or Securing a Loan

– Loans Off-Set Steep Costs

– Loans and Terms May Not Be Advantageous to the Company

• Down-payment

• Upfront processing fees

• Regular Monthly Payments

• Interest Charges

– Higher Cost To Own, Impacts Profitability

– Requires Self-Management of Equipment Warranties

• Requires Dedicated Manpower to Track, Manage, and Replace/Upgrade 1000’s of Devices

Financial Options

3. Leasing– A Business Expense vs. Capitalization

– Reduces the Facility’s Risk of Equipment Failure & Repairs• Vendor assumes risk

– Takes over warranty and SLA management

– Leases Frequently Allow “Operational Leases”• Only paying for the term in which the equipment is operational

– Allows Quick and Easy Equipment Upgrades and Replacements When Needed

– Requires Self-Management of Equipment Warranties• Requires Dedicated Manpower to Track and Manage 1000’s

of Devices

Financial Options

As of first quarter 2011, 35 to 40% of all US Healthcare facilities are leasing

their medical equipment.

Global Industry Analysts, INCApril, 2011

Financial Alternative

• Bundling and Streamlining– Hybrid Approach

• Leasing +

• Managed Services

– Functions Similarly to a Lease

– Eliminates the Need for Dedicated Manpower• Reduces IT Payroll

• Vendor Absorbs All Management, Tracking, and Replacement Responsibilities

– Equipment Updates Occur When Needed• Ensures Patient “Safety & Quality” from a Technology Perspective

• Supports Regulated Mandates

“…….nearly 80% of global healthcare CEOs surveyed expect to increase technology investments in 2013, yetmore than half fear their staff cannot keep up with the pace of technological change. 70% say they are revisitingtheir hiring and promotion strategies to address gaping holes.”

PwCHealthcare Institute

3D Technology Bundled Solution

• IT Healthcare Logistics– A Healthcare Designed Bundled

Solution• Leasing +

• Tracking and Management

• Aligned with Healthcare Facility Objectives– Accelerated Technology

Adoption

– Regulated and Policy Compliance

– Reduced Overhead

» Logistical Tracking and Management

3-D Technology is in the business of making Healthcare better. Hospitals and Health Systems are focused on improving patient care, reducing their operating costs and promoting community health. We help our clients achieve these objectives by focusing on three critical IT challenges; technology adoption, compliance and logistics. We have developed a custom portfolio of solutions to help our clients throughout the entire lifecycle of their IT devices.

About 3D Technology