Improving Medical Practiceswith Health and IT Solutions

2011 Annual Report

In a little over a decade, OCHIN has become a prominent national network with clinic members in ten states. Building OCHIN has taken time, patience and tenacity. Everyday, our employees give their all to make technology work so that providers can improve the lives of their patients. Whether it’s an install in a remote coastal town in North Carolina, a large urban clinic in California or a national research project with a university and the CDC, our members can count on OCHIN to help them get electronically connected to their patients’ health information so that they can access and improve healthcare using the latest tools and data available. At OCHIN we’re an integral part of healthcare transformation because we focus on both clinical and Health IT excellence.

After becoming Oregon’s Health Information Technology Extension Center (OCHIN O-HITEC) and implementing a successful outreach program to assist small private primary care practices serving Medicaid and Medicare patients in Oregon, we took the next step by opening an office in Bend, Oregon and diversifying our EHR product offerings with AllScripts and e-Clinical Works. Our Bend staff members, together with our O-HITEC consultants, are growing the business but more importantly supporting small practices so they can take advantage of Health IT to improve patient care. 2011 has been an exciting year full of many twists and turns in national health reform that will likely intensify in 2012. The OCHIN Board of Directors and executive staff members are engaged in an extensive planning process and are executing a comprehensive plan that allows OCHIN to remain nimble and able to pivot to meet the upcoming demands of health reform and market changes.

OCHIN is here to serve our members and to partner with those seeking to improve healthcare for all. In the coming year, we will forge new partnerships and set an even larger and more inclusive table in our efforts to transform healthcare.

Sincerely,

Abigail Sears CEO

2011 Annual Report

A MESSAGE FROM THE CEO

PATIENT DEMOGRAPHICS

A History of HelpingFor twelve years, OCHIN has been helping providers to care for their patients. Our commitment to improving patient care continues to be at the forefront of everything that we do. With over one million patients, we have one of the most diverse data sets of low-income, uninsured and underinsured individuals in the nation. Our efforts to partner with universities, health systems, medical associations and governmental health related entities to improve patient care through our Practice Based Research Network is rapidly expanding and providing practice based innovations that will ultimately help patients to live better lives.

2011 Annual Report

PATIENTS SERVED 1,002,794VISITS 9,403,449

SEX

Female 56%Male 40%

ETHNICITY

Hispanic 28%Non-Hispanic 58%Not Collected/Unknown 14%

RACE

American Indian 1%Asian 3%Black 6%Not Collected/Unknown 17%

Other 1%White 72% Unknown 18%

PATIENTS SERVED BY PAYOR MIX

Commercial 11%Medicaid 39%Medicare 6% Other 1%Self-pay 40%Unknown 4%

VISITS BY PAYOR

Commercial 8%Medicaid 47%Medicare 12% Other 1%Self-pay 30%Unknown 2%

FEDERAL POVERTY LEVEL

100% and below 58%101% - 150% 10%151% - 200% 4%Over 200% 10%

Going where you need us most! OCHIN is a national HIT product, services and research organization focused on helping clinics and practices to utilize Health IT products and services to achieve the core components of healthcare quality improvement. These components are essential to realizing the Institute for Healthcare Improvement’s Triple Aim goals of improving patient experiences, enhancing population health, and controlling costs.

2011 Annual Report

M I S S I O N :PARTNERING WITH COMMUNITIES TO CREATE

THE KNOWLEDGE AND INFORMATION SOLUTIONS TO PROMOTE ACCESS, HIGH QUALITY

AND AFFORDABLE HEALTHCARE FOR ALL

Number of Health Center Members by State

Alaska 1

Califonia 14

Montana 1

Nevada 1

North Carolina 2

Ohio 3

Oregon 33

Texas 1

Washington 2

Wisconsin 4

Connecting Health IT Products and ServicesOCHIN, Inc. provides an array of products and services to help our clients and members improve healthcare. Whether providing patient care, public health surveillance, or data for health research, our tools and people resources are helping providers to connect healthcare solutions.

2011 Annual Report

BUSINESS SERVICES: Billing Services • Counsulting Services • Gro

up Pu

rch

asin

g O

rga

niza

tion

DA

TA SERVIC

ES: Data Aggregation RESEARCH HEALTH INFORMATION EXCHANG

E P

RAC

TIC

E TR

AN

SFO

RMA

TIO

N: C

linic

al C

olla

bo

ratio

n •

Qua

lity Im

provement

Allscripts MyWay

OCHIN Epic EHR

e-Clinical Works

88

286

434

480

569

666

782

895

1002

1213

0

200

400

600

800

1000

1200

1400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dis

tinc

t Pro

vid

er C

oun

t

YEAR

OCHIN Provider Count Growth by Year

* “Providers” are defined as any performing provider who has had a recorded visit in our system during the given year. Counts include only providers with a specialty of ‘Dentist’, ‘MH Nurse Practitioner’, ‘Osteopath’, ‘Physician’, ‘Physician Assistant’, or ‘Psychiatrist’.

PRACTICE MANAGEMENT, ELECTRONIC HEALTH RECORD AND OCHIN BILLING SERVICES Number of Member Organizat ions By Year

FISCAL YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TOTAL

PM 4 8 12 14 17 18 22 27 37 51 37

EHR 3 4 11 16 31 45 31

OBS 1 2 4 4 5 6 12 7

2011 Annual Report

A committed network of medical providers serving the underserved OCHIN member medical providers are the reason that we exist. Day in and day out they help thou-sands of individual patients, support hundreds of public and community health based initiatives and at the same time they are key to Health IT advancement that benefits OCHIN providers and others outside of our organization. As our provider numbers grow, OCHIN continues to actively listen and anticipate the needs of our providers so that together we can meet our collective goals to improve healthcare for all.

BENEFITS AND PERKS:

OCHIN provides a rich benefit package with a generous paid time off (PTO) plan, employer paid health and dental benefits for our employees where a large percentage of the monthly cost for their families is also paid by the company. We also provide, tax qualified savings plans, company paid disability and life insurance in addition to commuter supported public trans- portation services. To support a healthy work environment, employees can receive an occasional chair massage and also participate on the OCHIN Dragon Boat Racing Team.

2011 Annual Report

INTERNSHIPS:

As a learning organization we offer an established Internship Program to students who are continually seeking knowledge in the healthcare arena. This program provides a great foundation for practical Healthcare IT experience. We put to the test our interns academic training in Medical Informatics, Health Informatics, Health Information Technology, Public Health, and Healthcare Administration using state of the art EMR software systems in a live medical practice.

The Power of Our EmployeesOur employees are the backbone of our organization. They are committed to our mission as we strive to deliver exceptional service and seek new and innovative ways to get things done for our members and clients.

In turn, OCHIN is committed to investing in our people – whether through professional development or personal growth – we know that our future depends on having top notch employees skilled in the ever changing and dynamic world of health information technology.

We believe in developing talent internally and reaching out into the communities that we serve so that we are always diversifying our workforce with skilled and mission driven people. With continued business growth in 2011, we hired our 100th employee.

A Learning OrganizationAt OCHIN, we understand our success comes from our culturally diverse team of employees, members, and the communities we serve. We relish the freedom to work and help transform the delivery of healthcare in an environment designed to foster collaboration, creativity, community, member focus, learning and personal growth.

2011 Annual Report

EMPLOYEE EDUCATION STIPEND:

OCHIN will pay up to $2,500 per budged fiscal year for eligible full-time employees for continuing education, training and professional development that offers growth in an area related to the employee’s position or advancement (promotional) opportunities.

VOLUNTEER OPPORTUNITIES:

OCHIN sponsors quarterly events where team members can participate in a variety of community organizations and volunteer opportunities to enhance the communities in which we live, work and play. Most of these events have a connection to OCHIN’s mission, and resonates with our employ-ees spirit of collaboration. Annually our employees’ lead a drive for items big and small, donating items to Outside In which supports the ongoing work with homeless youth, and offers healthcare services, transitional housing and educational support. Oregon Food Bank is another community that OCHIN’s team members have supported. The Food Bank offers nutritious food for families in need throughout every county in Oregon. A paid volunteer program is in development to further enhance our contributions to our community.

2011 Annual Report

OUR EXECUTIVE LEADERSHIP TEAM

The Depth of Our Experience OCHIN has an outstanding board and leadership team. Our board represents community clinic executives, medical professionals and business professionals all of whom are committed to serving the most vulnerable individuals in our nation’s healthcare system.

OUR BOARD OF DIRECTORS

Bob Marsalli Board Chair and Chair Executive Committee CEOMontana Primary Care Association Helena, Montana

John Saultz, M.D.Past Chair Professor Family Medicine Oregon Health & Science University Portland, Oregon

Hermann SpetzlerCEO/Executive Director Open Door Community Health Centers Arcata, California

Vanetta Abdellatif Secretary, Chair Governance Committee Director of Integrated Clinical Services Multnomah County Health Department Portland, Oregon

Homer ChinChair O-HITEC Advisory Committee Medical Director Clinical Information Systems Northwest Permanente, PC Portland, Oregon

Tom FronkAdministrative Services DirectorBenton County Battle Ground, WA

Craig Hostetler Chair Data Stewardship Committee Executive Director Oregon Primary Care Association Portland, Oregon

Gil MuñozCEOVirginia Garcia Memorial Health Center Hillsboro, Oregon

Joel Young Treasurer, Chair Audit and Finance Committees Oregon Health Division Portland, Oregon

Dian Cooper CEO Cowlitz Family Health Center Longview, Washington

Jean PolsterExecutive Director Neighborhood Family Practice Cleveland, Ohio

Lupita Salazar Weeks, BSN, MS Robert Wood Johnson Health Policy Fellow Kingsville, Texas

Mario Gutierrez At LargeInterim Executive DirectorCenter for Connected Health Policy Sacramento, California

Denise Honzel Chair Elect ConsultantCamas, Washington

Abby Sears Ex-Officio, CEO OCHINPortland, Oregon

Sean Whiteley-Ross Ex-Officio, CFOOCHIN Portland, Oregon

Susan Chauvie VP Quality Improvement / Practice Transformation

Paul MatthewsChief Technology Officer

Ruby Haughton-Pitts VP Marketing/Communications

Glenn KulmVP Central Oregon Operations

Clayton Gillett Director, O-HITEC

Phil Skiba VP Business Services

Kevin Geoffroy VP Epic Operations

Chip Taylor Medical Director, O-HITEC

2011 Annual Report

REVENUE FY 2010 FY 2011 INCREASE %

Implementation Fees 3,040,258 3,251,662 211,404 7%

User Fees 4,780,072 7,485,787 2,705,715 57%

Grant Revenue 5,483,747 7,719,079 2,235,332 41%

Other Revenue 1,142,549 87,828 (1,054,721) -92%

Gift in Kind –– –– –– 0%

TOTAL 14,446,626 18,544,356 4,097,730 28%

EXPENSES

Salaries and Benefits 7,755,325 10,314,783 2,559,456 33%

Maintenanceand Support 1,830,335 2,582,538 752,203 41%

Administration 3,726,243 4,777,998 1,051,755 28%

TOTAL 13,311,903 17,675,319 4,363,416 33%

CHANGE IN NET ASSETS 1,134,724 869,037 (265,687) -23%

EBITDA 1,797,543 1,907,281 109,738 6%

Our Financial Strength As a non-profit organization, OCHIN helps clinics and practices to collaborate by pooling scarce resources to afford state-of-the art Health IT and services that improve patient care.

2011 Annual Report

OCHIN Epic Clinic Members

AH Feather River CHC AH Tillamook Medical GroupAlliance Medical Center ARCW Medical Center Asher Community CHC Benton Health Services Care Alliance Cincinnati Health Dept Clackamas County Health Dept Clatsop County Public Health Coastal Family CHC Community Health Alliance-Chapter Community Health Center Cowlitz Family CHCCrook County Deschutes County Health Dept

Open Door CHC Pasadena Public Health Dept Pike Market Medical Clinic Placer County Community Clinic Roanoke Chowan CHCSanta Cruz County Sky Lakes Medical Center National College Natural Medicine Santa Cruz Women’s CHCThe Rinehart Clinic The Urology Clinic, P.C . Tillamook County Health Dept Virginia Garcia Memorial Waterfall CHC Westside Healthcare Assn Winding Waters Clinic, P.C.

Klamath Open Door Kodiak Community CHC La Clinica Del Carino La Clinica Del Valle Family CHC La Pine Health Center Lane County CHCLincoln County Health and Human Services Metropolitan Community HealthMonterey County Health Dept Mosaic Medical Multnomah County Health Dept Neighborhood Family Practice Neighborhood CHC OHSU Richmond and Scappoose Clinics

OCHIN eClinical Works Members

Bend Spine & Pain Specialists

Cascade Internal Medicine Specialists

St. Charles, Family Care, Redmond

St. Charles, CPC

Central Oregon Dermatology

Central Oregon ENT

Columbia Gorge Family Medicine

Corvallis Family Medicine

Deschutes Rim Health Clinic

East Cascade Women’s Group

Fall Creek Internal Medicine

Inkwell Medical Group

Johnson and Cade Family Practice

Junction City Medical Clinic

Juniper Ridge Clinic

McKenzie Family Practice

NW Brain and Spine

Optima Foot and Ankle

Pacific Women’s Center

Pediatric Care Associates

Portland Family Practice

Prineville Associates

Redmond Medical Clinic

River Road Medical Group

Rod Wigle, MD

South Hilyard Medical Clinic

Springfield Family Physicians

Surgical Associates – Cascades

The Laura Center

Klamath Pulmonary and Critical Care

Central Oregon Family Medicine

Sally Suzanne Marie LLC

Idaho Allergy

Bobbie Behrens LLCCentral Peninsula Family Practice Kenai, Fireweed, Kobuk Clinics

Central Peninsula Neurology

Central Peninsula Orthopaedics

Central Peninsula Pain Mgmt

Central Peninsula Pediatric Clinic

Central Peninsula Specialty Svcs

Family Medical Clinic

Kenai Medical Clinic

Kenai Peninsula Urology LLC

Peninsula Medical Center Assoc

Theodore Barton, MD

Central Peninsula Women’s Health

707 SW Washington St. • Suite 1200 • Portland OR 97205-3529 Phone: 503.943.2500 • Fax: 503.943.2501• www.ochin.org

Improving Medical Practiceswith Health and IT Solutions