This document contains confidential or proprietary information which may be legally privileged. It is intended only for the named recipients and may not be shared with vendors outside of Craneware.

Capital Markets Day 2018Craneware plc

© 2018 Craneware

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Agenda for today

Opening remarks: Keith Neilson, CEO, Craneware plc

The transition to Value Based Care: Colleen Blye, EVP and CFO for Montefiore Health System and Albert Einstein College of Medicine, Non-executive Director, Craneware plc

Trisus Healthcare Intelligence: Pietro Ferrara, SVP Trisus Healthcare Intelligence, Craneware plc

Coffee break

Net Patient Revenue: Brian Workinger, VP Payor and Pricing Analytics, Craneware plc

Closing remarks: Keith Neilson, CEO, Craneware plc

Panel Q&A

Lunch

© 2018 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

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© 2018 Craneware

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Trisus PlatformSecurity Reporting User Management Data Management Work Flow

Trisus Claims

Informatics

CDM Viewer

Trisus Healthcare Intelligence

Trisus Supply Application LayerTrisus

Chargemaster

Trisus BridgeChargemaster

ToolkitPharmacy ChargeLink

The Trisus ® Platform

3

Available Now Work On Going Future Development

Trisus Pricing

Analyzer

© 2018 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

© 2018 Craneware

craneware.com

Craneware’s Value Cycle Solutions help enable healthcare providers to understand the underlying pressures on margin and its correlation to patient outcomes.

Helping Health Systems Succeed in Value-Based Economics

4© 2018 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

Electronic

Health RecordsHealth Information

Management Systems

(PAS)

Value

Cycle Solutions

Clinical

Solutions

© 2018 Craneware

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The Transition to Value Based Care

© 2018 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

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Colleen BlyeEVP and CFO for Montefiore Health System and Albert Einstein

College of Medicine, Non-executive Director, Craneware plc

Empowers your People

to leverage your Data

and turn insights into Actions

to impact your Business

Trisus Healthcare Intelligence

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Craneware Healthcare Intelligence

Pietro Ferrara Senior Vice President P.Ferrara@Craneware.com

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Greatest Issue in Healthcare Today

Evolving Methods to Address Value Based Care

Today: Ratio of Cost to Charge Tomorrow : Cost Analytics based on Clinical Operations

“To determine value, providers must measure costs at the medical condition level, tracking the expenses involved in treating the condition over the full cycle of care. This requires understanding the resources used in a patient’s care . . . Then the cost of caring for a condition can be compared with the outcomes achieved.”

- Michael Porter, HBR, 20138

craneware.com

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◆ Hospitals do not currently have visibility into costs by Medical Condition

◆ EMRs do not contain cost information and it is complex to directly link cost to cases

◆ Interoperability between systems is a challenge

◆ Activity drivers are tracked and in disparate systems and these measure resource consumption

◆ Hospitals cannot drive process improvement without understanding true costs

◆ There is significant process variation between physicians. Process variation drives waste.

◆ The inability to detect variation forces cost containment to a broad level

◆ Costing methodologies based on charges are inadequate and misleading

◆ High complexity to have all necessary data in one place

◆ Lack of modern BI tools

THI Benefits

▪ Cost Analytics based on ABC allows cost cutting to be surgical

▪ Ability to detect significant activity drivers to cost variation

▪ Able to determine best practices (patient journey) and physician variance

▪ Facilitates peer-review, conversation and behavior changes

▪ Strong BI Tool that promotes data discovery

Complexity of Understanding Costs Across the Enterprise

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Measure Outcomes and Costs for Every Patient

“Existing costing systems are fine for overall department budgeting, but they provide only crude and misleading estimates of actual costs of service for individual patients and conditions.”

- Michael Porter, 2013

Source: https://hbr.org/2013/10/the-strategy-that-will-fix-health-care

Trisus® Healthcare Intelligence traces the pathway of the patient experience, generating insight into the real expenses across the entire

episode of care

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Nursing Department

Services: Admit to Med/Surg

floor

2

Diagnostic & Interventional Services:

Radiology and Laboratory

1

Visit to ED for hip pain 6

Other Clinical Services: PT / OT

EMRClinical

Financial

Patient’s Journey in the Hospital Provider Mall

5

Nursing Department Services:

Return to Med/Surg floor

7

Discharge to home

$

$$

$$$

4Surgical Services:

Anesthesia, OR, and PACU

11

Suspected hip fracture

Confirmed hip fracture

Hip replaced

Therapy determined

Labor

Direct Supplies

Billable Supplies

Direct Drugs

Unit and Support

Indirect Expenses

craneware.comA Change of Perspective

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RADIO CARD ENDO PACU OR ICU NURS REHAB Etc.

Imag

ing

-IR

IC –

No

n-i

nva

sive

Car

dio

End

osc

op

y

PAC

U-

An

esth

esia

OR

ICU

-N

ICU

Nu

rsin

g U

nit

PT –

RT

-Reh

ab

Etc

.

From vertical operational departments to a horizontal medical condition approach

Department perspective: vertical approach

Patient perspective: horizontal approach

Keep focus on the main reason why a patient goes to the hospital: he/she has a medical condition to solve!

craneware.com

• Labor

• Supplies & Drugs• Depreciation

• Purchased Services

• Other Expenses

• Labor

• Supplies & Drugs• Depreciation

• Purchased Services

• Other Expenses

• Labor• Supplies & Drugs

• Depreciation

• Purchased Services

• Other Expenses

• Labor• Supplies & Drugs

• Depreciation

• Purchased Services

• Other Expenses Diagnostic and

Interventional Services

Surgical Services

Nursing Unit Services

Other Clinical Services

Support Svs

Indirect Svs

Patient Journey

Patient Journey in the Hospital Services Mall

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Department Structure Department Structure

Department Structure Department Structure

Patient Encounter (IP/OP)

Cost Categories for each service center:

Lab

or

Dir

ect

Sup

plie

s

Bill

able

Su

pp

lies

Dir

ect

Dru

gs

Un

it C

ost

s

Sup

po

rt S

ervi

ces

Ind

irec

t Se

rvic

es

Data Integration and Processing

Financial EMRClinical

Operational

General Ledger Patient Billing – Claims

Payroll – FTE countFixed Assets

Supply Chain Item Master

Consumption metrics for the following areas:

Cardiology Radiology

GI Lab and Pulmonary

ADT Bed Management

Medical Records DRG / APROperating Room

Emergency Department

Trisus ® Healthcare Intelligence Utilizes Comprehensive Data Elements to Better Interpret Operations

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craneware.com

Cost Analytics Engine Business IntelligenceData Driven Insights

Data Elements Pre-Processed Data Model

Transformation Data Modeling & Discovery

Execution Cloud Based Solution

Ad-hoc Visualizations

Data Discovery

Infrastructure Free

Health Provider

Benefits

Health ProviderCraneware Craneware

Trisus ® Healthcare Intelligence Architecture

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Changing The Cost Paradigm

Measure Patient True Cost using methodology that is not influenced by pricing changes

Change perspective from vertical (Department) to horizontal (Medical Condition)

Gain credibility with Physicians and engaging them with data within their control

One source of trusted data that unifies Costs and Activities

Drive Performance Improvement in an actionable and measureable way

Measure costs across the continuum of care

THI provides a sustainable approach to represent the True Operational Cost regarding each Patient by

medical condition across a population.

Case Study

THI Demo

17

1818

TRUE Cost of Care at a Patient Level

• Provides patient encounter Data based on resource consumption by service area to support BI advanced analytics

Patient Profitability (by Service Line, DRG, Physician, Payor, etc.)

• Provides insight by quantifying financial outcomes by any type of patient grouping

Physician Variability

• Traces the patient journey and enables physicians to understand how their activities impact expenses on the hospital provider side

• Promotes conversation of physician best practice and enables benchmarking and process improvements to influence behavior

Payor Contract Negotiations

• Provides support with cost by medical condition and facilitates negotiating fees and the development of bundled payment strategies

Links Department (horizontal) and Medical Condition (vertical) Perspectives

• Provides resource consumption and activity information by departments (i.e. Radiology, Cath Lab, nursing) for each patient visit, and grouped by medical condition (e.g. SL)

• Also supports aggregating patient encounter for the entire continuum of care

Single Source of Truth for Data

• Integrates clinical-operational data with and financial data at a Patient encounter level, onto a single platform

Stakeholders

• CEO - CFO

• COO – CMO

• Decision Support

• Physician Leadership

• Strategic Planning

• Contract Management

• Clinical and Support Services

• Quality Dept.

✓

✓

✓

✓

✓

✓

Trisus ® Healthcare Intelligence: Value Proposition, ROI & Stakeholders

This document contains confidential or proprietary information which may be legally privileged. It is intended only for the named recipients and may not be shared with vendors outside of Craneware.

Net Patient RevenueBrian Workinger, VP, Payor & Pricing Analytics

© 2018 Craneware

craneware.com

MARGIN MANAGEMENT

COMPLEX PAYOR LANGUAGE

VariabilityLesser of

Patient Responsibility

Grouping Volume Payment TermEffective Date

% of Patient

PaymentUNDERSTANDING MARGIN

DEFENDABLE MARGIN

Appropriate Price Accurate Payment

COST COST

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© 2018 Craneware

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• Trisus®

• Optimal Net Patient Revenue

• User Enable Price Modeling

• Reimbursement Model Maintenance

• Automated Payor Mapping

• Improved Value Reporting (Stoploss, Outlier, DRG Lesser Than, etc.)

• Real-time Net Patient Revenue Impact

Revenue Opportunities | Accountability | Efficiency | Simplicity | Control

Craneware Benefit

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© 2018 Craneware

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Collaboration

Workflow; Spans the revenue cycle continuum

ProductivityCommon user interface; Intuitive; Efficient

ValueCross product value creation; Actionable insights

IntegrationInteroperable; Data-enabled; Continuous

Engagement

Accountability; Stakeholder Engagement

Trisus® efficiencies for our customers

© 2018 Craneware

craneware.com

Trisus PlatformSecurity Reporting User Management Data Management Work Flow

Trisus Claims

Informatics

CDM Viewer

Trisus Healthcare Intelligence

Trisus Supply Application LayerTrisus

Chargemaster

Trisus BridgeChargemaster

ToolkitPharmacy ChargeLink

The Trisus ® Platform

23

Available Now Work On Going Future Development

Trisus Pricing

Analyzer

© 2018 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

© 2018 Craneware

craneware.com

Questions

© 2018 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

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This document contains confidential or proprietary information which may be legally privileged. It is intended only for the named recipients and may not be shared with vendors outside of Craneware.

Thank You!