Healthcare Services Sector Review: Publicly-Traded ... fileHealthcare Services Sector Review: Public Comps Stock Price Equity Total Last Twelve Forward Company Name As Of 52-Week Market

1

Sources: ThomsonOne, Bloomberg

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($ in millions)

Healthcare Services Sector Review: Publicly-Traded Healthcare Services Summary

Number Aggr. Median TEV / Median Price /

of Equity Mkt. Median % Change LTM Multiples Earnings Ratio

Companies Value 3 mos. 12 mos. Revenue EBITDA 2016 2017

Acute Care Hospitals 5 $52,872 15.9% (9.8)% 1.0x 8.5x 17.3x 12.8x

Alternate Site 16 68,902 6.9 (7.8) 2.4 11.4 21.4 18.2

Assisted Living 1 3,430 13.4 (49.0) 2.0 11.9 7.4 6.7

Clinical Laboratories 4 29,658 14.2 (0.3) 2.5 10.2 14.5 13.9

CROs — Pharma Services 9 29,162 10.1 4.8 2.4 12.5 18.2 16.1

Distribution / Supply 8 107,989 3.2 (3.3) 0.6 10.0 15.1 14.4

E-Health 3 4,722 22.8 42.1 4.1 17.0 19.0 24.2

HCIT 18 47,995 3.1 (10.3) 3.6 13.5 23.5 20.8

HMO Medical — Diversified 4 237,003 9.1 8.1 0.9 9.0 14.6 13.3

HMO Medical — Government 3 17,473 (0.2) (0.0) 0.4 9.7 17.7 13.2

HMO Medical — National & Regional 3 27,641 16.8 6.9 0.4 9.9 18.6 17.8

Home Care / Hospice / Staffing 6 5,436 8.1 4.8 1.0 11.9 18.2 16.8

Long-Term Care 7 4,234 2.1 (35.7) 0.9 7.9 16.0 14.5

Other Services 7 5,530 4.8 (1.0) 1.5 9.9 16.3 13.9

Outsourced Services 11 14,583 (0.9) 11.3 0.9 10.2 16.8 15.7

Pharmacy Benefit Managers 2 156,412 3.3 (6.7) 0.7 10.0 14.4 13.1

Physician Practice Management 5 15,450 2.4 (28.2) 1.4 12.0 15.6 14.6

Total / Median (unweighted) 112 $828,491 6.9% (1.0)% 1.0x 10.2x 16.8x 14.5x

FY2016 FY2017

Value at % Change Price / Earnings Ratio

4/30/2016 3 mos. YTD 12 mos. 36 mos. 2016 2017

Dow Jones Industrial Average 17,773.64 8.1% 3.6% (1.4)% 20.9%

S&P 500 2,065.30 6.5 2.6 (2.0) 30.5 16.8x 15.8x

Nasdaq Composite 4,775.36 3.4 (2.6) (4.6) 44.7

Russell 2000 1,130.85 9.5 2.0 (7.9) 22.4 21.5 17.6

S&P 500 Healthcare Providers & Svs. 629.16 7.8 0.2 (1.3) 76.2

S&P 500 Healthcare Facilities 437.16 14.7 18.1 5.0 33.9

S&P 500 Managed Healthcare 1,207.54 9.9 5.4 8.4 111.5

Healthcare Services Composite 672.44 5.8% (7.6)% (9.6)% 27.1%

Number Aggr. Equity % of Total % of Aggr. Interest Rates

of Mkt. Value Number of Equity Mkt. Median Stock Price Performance

Companies ( millions) Companies Value 3 mos. YTD 12 mos. 36 mos.

>5bln 26 $702,514 23.2% 84.8% 8.3% 3.1% 2.1% 105.3%

1bln - 5bln 42 107,672 37.5 13.0 9.5 6.5 (0.2) 89.0

250mm - 1bln 27 16,768 24.1 2.0 3.3 5.9 (1.9) 99.2

<250mm 17 1,537 15.2 0.2 3.6 (39.7) (11.4) 16.3

Total / Median 112 $828,491 100.0% 100.0% 6.0% 4.5% (1.0)% 94.1%

Capitalization Profile

Market Indices

Sector

2

Source: ThomsonOne

Healthcare Services Sector Review: Publicly-Traded Healthcare Services Summary

Median % Change - 3 Months

Performance of Market Indices for Latest 36 Months (%)

One Year Forward P/E for Latest 36 Months (x)

Outsourced Services

HMO Medical — Government

Long-Term Care

Physician Practice Management

HCIT

Distribution / Supply

Pharmacy Benefit Managers

Other Services

Alternate Site

Home Care / Hospice / Staffing

HMO Medical — Diversified

CROs — Pharma Services

Assisted Living

Clinical Laboratories

Acute Care Hospitals

HMO Medical — National & Regional

E-Health

(5.0)% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

0

25

50

75

100

125

150

175

4/30/2013 8/31/2013 12/31/2013 4/30/2014 8/31/2014 12/31/2014 4/30/2015 8/31/2015 12/31/2015 4/30/2016

DJ Indu S&P 500 NASDAQ Russell 2000 Healthcare Services Composite

0

2

4

6

8

10

12

14

16

18

20

4/30/2013 8/31/2013 12/31/2013 4/30/2014 8/31/2014 12/31/2014 4/30/2015 8/31/2015 12/31/2015 4/30/2016

Healthcare Services Composite S&P 500

3

Source: ThomsonOne

($ in millions, except per share data)

Healthcare Services Sector Review: Public Comps Stock Price Equity Total Last Twelve Forward

Company Name As Of 52-Week Market Enterprise Months (LTM) TEV / LTM TEV / EBITDA PE Ratio PEG

04/30/16 High Low Value Value (TEV) Revenue EBITDA EBIT Revenue EBITDA 2016 2017 2016 2017 2016

Acute Care Hospitals

COMMUNITY HEALTH SYSTEMS INC $15.70 $53.50 $10.59 $1,787 $19,311 $19,540 $2,730 $1,433 1.0x 7.1x 7.0x 6.7x 4.8x 4.4x 0.6x

HCA HOLDINGS INC 80.62 95.49 43.91 31,907 63,207 40,240 7,417 6,011 1.6 8.5 8.2 7.8 12.9 11.7 1.2

LIFEPOINT HEALTH INC 67.56 88.18 58.20 2,933 5,508 5,531 687 378 1.0 8.0 7.1 6.5 18.0 15.3 2.6

TENET HEALTHCARE CORP 31.69 60.93 21.39 3,145 19,832 18,989 2,109 1,479 1.0 9.4 8.1 7.6 17.3 12.8 1.1

UNIVERSAL HEALTH SERVICES INC 133.68 148.57 100.82 13,100 16,791 9,268 1,631 1,274 1.8 10.3 9.9 9.2 17.9 16.4 1.9

5Number of Companies: Mean: Total: $52,872 $124,648 $93,567 1.3x 8.7x 8.0x 7.6x 14.2x 12.1x 1.5x

Median: 1.0 8.5 8.1 7.6 17.3 12.8 1.2

Alternate Site

AAC HOLDINGS INC $20.59 $46.60 $14.36 $473 $594 $229 $42 $28 2.6x 14.0x 11.4x 9.3x 21.5x 18.2x 1.1x

ACADIA HEALTHCARE COMPANY 63.19 85.62 49.77 5,526 9,064 2,046 434 356 4.4 NM 14.2 12.4 22.2 18.5 1.1

ADEPTUS HEALTH INC 68.12 123.97 37.13 1,436 1,636 389 65 65 4.2 NM 14.4 10.5 25.9 17.7 0.3

ALLIANCE HEALTHCARE SERVICES INC 7.19 22.27 6.23 77 712 473 94 57 1.5 7.6 NA NA NA NA NA

AMSURG CORP 80.98 87.42 54.11 4,437 7,556 2,721 519 104 2.8 14.6 12.7 11.3 18.8 16.6 1.2

CIVITAS SOLUTIONS INC 20.04 30.23 15.19 744 1,357 1,392 152 76 1.0 9.0 8.5 7.9 27.5 20.1 2.7

CONCORD MEDICAL SERVICES HOLDINGS LTD 4.89 8.23 4.07 218 352 96 33 3 2.9 10.5 3.9 8.2 14.0 9.8 0.7

DAVITA HEALTHCARE PARTNERS INC 73.90 84.40 61.36 15,231 23,531 14,000 2,392 1,894 1.7 9.8 9.8 9.2 19.0 16.9 1.6

FRESENIUS MEDICAL CARE AG & CO KGAA 86.76 91.77 73.04 26,580 36,109 17,023 2,837 2,327 2.1 12.7 10.3 9.4 21.4 19.1 1.7

HEALTHSOUTH CORP 41.46 48.37 30.26 3,732 7,557 3,332 649 596 2.3 11.6 9.7 9.1 16.9 15.4 1.6

RADNET INC 5.05 8.87 4.66 239 883 833 119 41 1.1 7.4 6.5 6.2 17.8 13.8 1.8

SELECT MEDICAL HOLDINGS CORP 13.38 17.20 7.33 1,757 4,482 4,005 409 275 1.1 11.0 8.9 8.3 15.5 13.6 1.2

SURGICAL CARE AFFILIATES INC 48.35 49.90 27.88 1,933 3,151 1,089 261 196 2.9 7.8 NM NM 22.6 19.8 1.0

SURGERY PARTNERS INC 16.29 22.32 11.76 784 2,509 1,011 158 124 2.5 15.9 13.3 11.1 NM 18.4 NA

U.S. PHYSICAL THERAPY INC 49.86 56.37 42.59 623 696 337 46 47 2.1 15.2 13.0 12.2 25.4 23.2 1.8

VCA INC 62.97 64.98 44.00 5,113 6,019 2,197 435 369 2.7 13.8 12.9 11.8 22.1 19.7 1.6


Median: 2.4 11.4 10.3 9.4 21.4 18.2 1.4

Assisted Living

BROOKDALE SENIOR LIVING INC $18.46 $38.60 $11.28 $3,430 $9,742 $4,966 $822 $56 2.0x 11.9x 10.5x 9.8x 7.4x 6.7x 0.6x


Median: 2.0 11.9 10.5 9.8 7.4 6.7 0.6

Clinical Laboratories

LABORATORY CORPORATION OF AMERICA HOLDINGS$125.32 $128.84 $97.79 $12,794 $18,509 $9,029 $1,819 $1,520 2.1x 10.2x 9.6x 9.0x 14.3x 13.0x 1.4x

PSYCHEMEDICS CORP 14.41 16.30 7.76 78 81 27 3 1 3.0 NM NA NA 9.1 NA 0.5

QUEST DIAGNOSTICS INC 75.17 89.00 59.65 10,633 14,433 7,517 1,459 1,274 1.9 9.9 9.7 9.3 14.8 13.9 1.6

SONIC HEALTHCARE LTD 14.82 17.56 12.11 6,152 7,999 2,036 645 415 3.9 12.4 9.2 8.7 17.6 16.7 1.9


Median: 2.5 10.2 9.6 9.0 14.5 13.9 1.5

CROs — Pharma Services

ALBANY MOLECULAR RESEARCH INC $15.05 $22.48 $13.71 $537 $874 $428 $81 $53 2.0x 10.8x 9.4x 8.5x 14.3x 12.3x 1.2x

CATALENT INC 29.53 34.41 18.92 3,677 5,434 1,813 412 329 3.0 13.3 13.1 11.9 18.2 16.2 2.7

CHARLES RIVER LABORATORIES INTERNATIONAL INC 79.27 82.40 59.99 3,734 4,511 1,398 341 265 3.2 13.2 11.4 10.2 18.2 16.0 1.4

ICON PLC 67.58 84.14 63.20 3,714 3,874 1,587 350 291 2.4 11.1 10.2 9.5 14.4 12.9 0.9

INC RESEARCH HOLDINGS INC 48.13 57.11 29.62 3,082 3,498 941 224 203 3.7 15.6 14.7 12.9 20.3 17.4 1.1

PAREXEL INTERNATIONAL CORP 61.10 76.17 56.00 3,280 3,641 2,165 331 250 1.7 11.0 10.1 9.1 16.5 14.2 1.0

INTERPACE DIAGNOSTICS GROUP INC 0.52 2.74 0.19 9 9 146 (14) (31) 0.1 NM NM NM NM NM NA

PRA HEALTH SCIENCES INC 47.45 51.35 28.28 2,873 3,651 1,416 263 227 2.6 13.9 12.9 11.5 19.7 16.9 1.4

QUINTILES TRANSNATIONAL HOLDINGS INC 69.07 80.45 55.01 8,254 9,971 4,414 839 680 2.3 11.9 11.2 10.2 18.3 16.4 1.6


Median: 2.4 12.5 11.3 10.2 18.2 16.1 1.3

Distribution / Supply

ACETO CORP $22.43 $32.20 $18.03 $663 $722 $562 $79 $70 1.3x 9.1x 9.2x 7.9x 13.5x NA 0.7x

AMERISOURCEBERGEN CORP 85.10 116.28 80.50 19,184 22,707 142,238 2,202 1,939 0.2 10.3 9.6 8.8 14.3 12.7 1.0

CARDINAL HEALTH INC 78.46 91.23 74.73 25,839 29,177 117,709 3,024 2,862 0.2 9.6 9.0 8.3 14.2 12.8 1.1

HENRY SCHEIN INC 168.70 174.75 126.17 13,858 15,141 10,830 899 769 1.4 16.8 14.9 13.8 25.5 23.0 2.2

MCKESSON CORP 167.82 243.61 148.29 38,361 45,135 191,059 4,998 4,502 0.2 9.0 8.8 8.5 12.6 11.8 1.3

OWENS & MINOR INC 36.39 41.48 31.89 2,287 2,699 9,815 288 227 0.3 9.4 9.6 9.2 17.8 16.8 4.1

PATTERSON COMPANIES INC 43.35 53.07 38.51 4,296 5,443 5,398 456 386 1.0 11.9 11.9 11.3 16.7 15.0 1.7

VWR CORP 26.64 28.83 21.56 3,501 5,556 4,356 460 412 1.3 12.1 11.6 10.8 15.8 14.4 1.5


Median: 0.6 10.0 9.6 9.0 15.1 14.4 1.4

4

Source: ThomsonOne





E-Health

EBIX INC $48.12 $49.92 $19.78 $1,619 $1,767 $271 $104 $91 6.5x 17.0x 15.5x 13.9x 19.0x 17.4x 1.9x

HEALTHSTREAM INC 22.62 32.41 17.80 718 567 222 33 17 2.6 17.0 14.9 12.1 NM NM NA

WEBMD HEALTH CORP 62.74 63.98 37.57 2,385 2,664 650 199 125 4.1 13.4 11.9 10.6 NM 31.1 NA


Median: 4.1 17.0 14.9 12.1 19.0 24.2 1.9

HCIT

ACCRETIVE HEALTH INC $2.37 $5.95 $1.77 $262 $158 $117 ($118) ($127) 0.7x NM 22.4x 8.7x NM 25.5x NA

ALLSCRIPTS HEALTHCARE SOLUTIONS INC 13.40 15.78 11.47 2,505 3,025 1,400 254 152 2.2 11.9 11.1 9.9 23.1 19.6 1.4

ATHENAHEALTH INC 133.30 170.42 110.68 5,234 5,431 974 198 102 5.6 27.4 23.3 19.0 NM NM NA

CAREVIEW COMMUNICATIONS INC 0.24 0.40 0.20 33 70 5 (5) (5) 13.6 NM NA NA NA NA NA

CASTLIGHT HEALTH INC 3.60 10.36 2.54 545 425 81 (61) (78) 5.2 NM NM NM NM NM NA

CERNER CORP 56.14 75.00 49.59 18,969 19,061 4,595 1,530 1,075 4.1 12.5 11.2 10.1 23.9 20.8 1.7

COMPUTER PROGRAMS AND SYSTEMS INC 51.33 59.16 36.04 693 658 178 33 28 3.7 20.0 7.6 7.0 15.2 13.4 1.4

EVOLENT HEALTH INC 12.01 23.15 8.14 722 847 97 (32) (39) 8.7 NM NM NM NM NM NA

HMS HOLDINGS CORP 16.89 18.29 8.11 1,421 1,474 479 113 90 3.1 13.0 12.3 11.0 26.7 22.8 2.0

IMPRIVATA, INC. 12.12 21.63 9.00 306 255 123 (15) (16) 2.1 NM NM NM NM NM NA

IMS HEALTH HOLDINGS INC 26.64 33.52 22.36 8,784 12,573 3,039 898 706 4.1 14.0 13.3 12.3 16.9 15.2 1.7

INOVALON HOLDINGS INC 17.10 29.00 15.12 2,811 2,380 442 146 130 5.4 16.3 13.1 11.0 29.1 24.0 1.3

MEDIDATA SOLUTIONS INC 43.63 61.31 30.22 2,496 2,426 404 91 86 6.0 26.5 22.5 18.2 43.3 35.3 2.6

MEDICAL TRANSCRIPTION BILLING CORP 0.99 2.50 0.68 10 10 23 (1) (6) 0.4 NM 5.1 2.4 NM NM NA

NATIONAL RESEARCH CORP 36.51 38.22 27.54 891 855 105 32 26 8.2 26.5 24.8 NA 46.8 40.6 3.6

OMNICELL INC 31.86 40.80 25.06 1,143 1,061 542 94 75 2.0 11.3 9.1 7.9 20.3 17.5 1.2

QUALITY SYSTEMS INC 14.08 17.95 12.00 857 748 493 78 64 1.5 9.6 9.3 7.7 18.0 16.4 1.0

VOCERA COMMUNICATIONS INC 11.72 16.02 10.08 310 194 107 1 (4) 1.8 NM NM NM NM NM NA


Median: 3.6 13.5 11.7 10.0 23.5 20.8 1.6

HMO Medical — Diversified

AETNA INC $112.27 $134.40 $92.42 $39,362 $47,032 $60,899 $5,418 $5,056 0.8x 8.7x 8.7x 8.1x 14.1x 12.8x 1.5x

CIGNA CORP 138.54 170.68 123.54 35,501 39,396 38,405 4,370 3,771 1.0 9.0 8.9 8.5 15.1 13.8 1.4

UNITEDHEALTH GROUP INC 131.68 135.11 95.00 125,124 160,384 165,878 13,019 11,341 1.0 12.3 10.9 9.9 16.7 14.7 1.1

ANTHEM INC 140.77 173.59 115.63 37,016 50,634 79,863 5,682 5,183 0.6 8.9 8.5 8.0 12.9 11.7 1.2


Median: 0.9 9.0 8.8 8.3 14.6 13.3 1.3

HMO Medical — Government

CENTENE CORP $61.96 $83.00 $47.36 $10,563 $14,995 $24,582 $1,229 $821 0.6x 12.2x 6.9x 6.0x 14.8x 12.6x 0.8x

MOLINA HEALTHCARE INC 51.76 82.37 48.00 2,929 3,935 15,244 571 411 0.3 6.9 6.3 5.8 17.7 13.2 1.1

WELLCARE HEALTH PLANS INC 89.99 98.79 69.16 3,982 5,086 13,920 524 392 0.4 9.7 8.5 8.1 20.2 16.4 1.2


Median: 0.4 9.7 8.5 7.7 17.7 13.2 1.1

HMO Medical — National & Regional

UNIVERSAL AMERICAN CORP $7.44 $11.16 $5.55 $610 $580 $1,623 $20 $7 0.4x NM 15.8x 10.9x NM 26.8x NA

HUMANA INC 177.07 219.79 155.24 26,387 29,507 54,216 2,522 2,370 0.5 11.7 9.6 9.1 20.0 17.8 1.3

TRIPLE-S MANAGEMENT CORP 26.04 27.70 17.34 645 669 2,903 82 65 0.2 8.2 9.0 8.2 17.2 15.1 1.7


Median: 0.4 9.9 9.6 9.1 18.6 17.8 1.5

Home Care / Hospice / Staffing

ADDUS HOMECARE CORP $18.50 $38.08 $15.33 $212 $211 $349 $24 $18 0.6x 8.7x 7.2x 6.3x 14.4x 12.1x 1.0x

ALMOST FAMILY INC 42.01 50.48 34.08 432 548 557 46 37 1.0 12.0 10.3 9.6 16.3 15.1 1.4

AMEDISYS INC 51.49 54.29 26.05 1,721 1,795 1,315 110 73 1.4 16.4 14.5 12.1 29.6 23.9 0.4

BIOSCRIP INC 2.64 4.97 1.19 182 670 986 45 2 0.7 14.8 13.6 10.7 NM NM NA

CHEMED CORP 129.78 160.12 115.29 2,159 2,288 1,557 238 204 1.5 9.6 9.6 9.2 18.2 16.8 1.8

LHC GROUP INC 40.34 51.83 29.69 731 839 838 71 68 1.0 11.8 11.1 10.4 20.5 19.3 1.4


Median: 1.0 11.9 10.7 10.0 18.2 16.8 1.4

5

Source: ThomsonOne





Long-Term Care

ADCARE HEALTH SYSTEMS INC $2.20 $4.10 $1.85 $44 $220 $18 $0 ($8) 12.0x NM NA NA NM NA NA

CAPITAL SENIOR LIVING CORP 20.06 26.45 14.58 601 1,340 422 76 19 3.2 17.7 14.9 13.2 NM NM NA

DIVERSICARE HEALTHCARE SERVICES INC 8.47 16.84 6.45 54 110 388 15 7 0.3 7.4 NA NA NA NA NA

FIVE STAR QUALITY CARE INC 2.44 5.07 2.00 121 190 1,378 35 1 0.1 5.4 5.9 4.9 NM NM NA

KINDRED HEALTHCARE INC 14.76 24.57 7.96 1,257 4,420 7,223 562 451 0.6 7.9 4.4 6.6 16.8 15.4 4.2

NATIONAL HEALTHCARE CORP 64.45 69.40 57.16 984 956 907 109 70 1.1 8.8 8.9 8.8 NA NA NA

ENSIGN GROUP INC 22.56 27.04 17.60 1,174 1,230 1,388 141 110 0.9 8.7 7.6 6.7 15.3 13.5 1.0


Median: 0.9 7.9 8.1 7.3 16.0 14.5 2.6

Other Services

AIR METHODS CORP $36.98 $46.49 $32.81 $1,467 $2,173 $1,117 $292 $202 1.9x 7.4x 6.4x 5.9x 10.9x 9.9x 0.6x

ALERE INC 39.00 55.99 31.96 3,364 6,769 2,459 549 469 2.8 12.3 12.1 11.0 16.3 13.9 1.6

DIGIRAD CORP 5.83 6.92 3.50 114 95 78 10 2 1.2 9.5 5.5 5.2 18.8 17.7 1.2

CHINA CORD BLOOD CORP 6.24 7.69 4.61 456 163 106 48 46 1.5 3.4 3.8 3.2 29.4 NA 1.0

CRYO-CELL INTERNATIONAL INC 3.25 3.95 2.12 30 26 21 2 3 1.2 12.8 NA NA NA NA NA

HOOPER HOLMES INC 0.14 0.49 0.05 18 21 32 (6) (7) 0.7 NM NA NA NA NA NA

INFUSYSTEM HOLDINGS INC 3.60 3.75 2.22 81 116 72 17 9 1.6 6.7 NA NA 12.9 NA 0.6


Median: 1.5 9.9 5.9 5.5 16.3 13.9 1.0

Outsourced Services

AMN HEALTHCARE SERVICES INC $35.51 $37.47 $21.24 $1,704 $1,849 $1,582 $173 $129 1.2x 10.7x 8.5x 7.6x 16.8x 14.8x 1.4x

CORVEL CORP 45.20 46.92 29.27 885 858 497 64 44 1.7 13.4 NA NA NA NA NA

CROSS COUNTRY HEALTHCARE INC 12.43 18.76 9.72 407 495 778 37 27 0.6 13.3 10.5 8.7 18.5 14.0 0.7

DIPLOMAT PHARMACY INC 30.29 52.33 22.41 1,997 2,090 3,725 115 81 0.6 18.1 17.5 14.5 NM 28.2 NA

HEALTHCARE SERVICES GROUP INC 37.85 38.49 29.42 2,739 2,637 1,466 101 94 1.8 NM 20.0 17.6 NM 30.7 NA

HEALTHWAYS INC 11.65 17.80 9.18 421 655 770 70 19 0.9 9.4 8.1 7.1 NM 29.6 NA

MAGELLAN HEALTH INC 70.46 73.00 45.40 1,745 1,409 4,655 196 76 0.3 7.2 5.7 5.1 25.7 18.8 NM

ON ASSIGNMENT INC 36.06 51.00 29.34 1,924 2,618 2,217 264 226 1.2 9.9 9.0 8.1 11.5 10.4 0.9

PHARMERICA CORP 23.64 36.96 19.79 727 1,131 2,026 133 89 0.6 8.5 8.5 7.7 11.8 10.4 1.8

ADVISORY BOARD CO 31.64 60.38 18.87 1,294 1,775 798 179 126 2.2 9.9 9.3 8.4 18.8 16.6 1.1

PROVIDENCE SERVICE CORP 49.84 56.92 39.08 741 1,033 1,801 98 103 0.6 10.5 8.3 6.9 16.1 13.0 1.1


Median: 0.9 10.2 8.8 7.9 16.8 15.7 1.1

Pharmacy Benefit Managers

CVS HEALTH CORP $100.50 $113.65 $81.37 $109,775 $134,738 $159,969 $11,973 $9,454 0.8x 11.3x 10.2x 9.4x 17.3x 15.3x 1.2x

EXPRESS SCRIPTS HOLDING CO 73.73 94.61 65.55 46,637 61,465 101,644 6,972 6,626 0.6 8.8 8.4 8.3 11.6 10.9 0.7


Median: 0.7 10.0 9.3 8.9 14.4 13.1 1.0

Physician Practice Management

BIRNER DENTAL MANAGEMENT SERVICES INC $9.50 $13.81 $8.63 $18 $28 $64 $4 ($1) 0.4x 7.7x NA NA NA NA NA

ENVISION HEALTHCARE HOLDINGS INC 22.63 45.95 18.31 4,234 7,076 5,753 614 530 1.2 11.5 9.8 8.8 15.6 13.6 1.1

EXAMWORKS GROUP INC 36.05 42.60 21.98 1,480 1,967 841 126 61 2.3 15.6 12.2 11.4 NM 43.8 NA

MEDNAX INC 71.29 86.09 61.40 6,632 8,022 2,893 671 646 2.8 12.0 11.7 10.7 17.2 15.7 1.2

TEAMHEALTH HOLDINGS INC 41.83 70.21 33.15 3,087 5,467 3,869 410 333 1.4 13.3 10.8 9.5 14.8 12.7 0.9


Median: 1.4 12.0 11.3 10.1 15.6 14.6 1.1

6

Sources: Morgan Markets, Bloomberg

As of April 30, 2016

Debt Capital Markets Overview

6.75%

7.13%

8.05%

5.39%

High Yield Market Overview

High Yield New Issue Volume

High Yield Corporate Credit Yields

($ in billions)

April saw $32.4bln of High Yield issuance compared to $20.8bln in March

– Refinancing: 49.0% year to date vs. 43.4% in 2015

– Acquisition finance/LBO transactions: 26.0% year to date vs. 37.5% in 2015

Two Healthcare issuers hit the High Yield market in April after one last month

– Quorum Health priced $400mln of senior notes (Caa1 / CCC+) at 11.625% for the spin-off from Community

Health Systems

– Regionalcare Capella Healthcare priced $800mln of 1st Lien Notes (B1 / B) at 8.250% for the merger of

Regionalcare and Capella Healthcare

April saw a net inflow from mutual funds of approximately $1.4bln; 2016 year-to-date net inflows are +$9.7bln

The yield on the High Yield index fell from 10.44% on February 11th to 8.05% on April 31st

– Healthcare yields fell 27 bps from 7.02% to 6.75% during the month of April

$33.3

$20.8

$9.2 $10.1

$19.4

$9.1

$22.1

$4.3 $5.5 $9.4

$20.8

$32.4

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

HY - All BB B HY - Healthcare

7



Debt Capital Markets Overview

105 bps

134 bps 139 bps

213 bps

173 bps

Investment Grade Market Overview

Investment Grade New Issue Volume

Investment Grade Corporate Credit Spreads

($ in billions)

April saw $103.7bln of issuance in the Investment Grade market versus $119.9bln in March

Two Investment Grade Healthcare issuers hit the market in April

Thermo Fisher issued $1.0bln (Baa3 / BBB) to fund the acquisition of Affymetrix

Ascension Health System issued $700mln (Aa2 / AA+) for general corporate purposes

In April, Investment Grade funds saw $6.3bln of net inflows; 2016 year-to-date net inflows total $5.8bln

Investment Grade spreads tightened during the month by 17 bps to 173 bps

– Investment Grade Healthcare spreads tightened by 11 bps, ending at 139 bps

– The 10-yr US Treasury yield ended the month higher at 1.83% versus 1.77% at the beginning of the month

$154.9

$97.2

$129.1

$48.6

$102.5 $104.5 $101.6

$54.0

$125.6

$102.0

$119.9

$103.7

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

50 bps

100 bps

150 bps

200 bps

250 bps

300 bps

350 bps

Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

IG - Healthcare IG - All AA A BBB

Amount Rating

Date Issuer Ticker ($mm) Security Coupon Maturity Price Spread Moody's S&P Sector

25-Apr-16 Ascension Health System ASCHEA $700 Sr Unsec 394.500% 11/15/2046 100.000 +122 Aa2 AA+ Healthcare - Facilities & Services

Use of Proceeds: General Corporate Purposes

4-Apr-16 Thermo Fischer Scientific Inc TMO 1,000 Sr Unsec 300.000% 4/15/2023 99.512 +155 Baa3 BBB Life Science Equipment

Use of Proceeds: Acquisition of Affymetrix

22-Feb-16 Express Scripts Holding Co ESRX 500 Sr Unsec 3.300% 2/25/2021 99.790 +210 Baa2 BBB+ Healthcare - Facilities & Services

22-Feb-16 Express Scripts Holding Co ESRX 1,500 Sr Unsec 4.500% 2/25/2026 99.467 +280 Baa2 BBB+ Healthcare - Facilities & Services

Use of Proceeds: Refinancing existing notes

22-Feb-16 UnitedHealth Group UNH 750 Sr Unsec 1.700% 2/15/2019 99.963 +80 A3 A+ Healthcare - Managed Care

22-Feb-16 UnitedHealth Group UNH 750 Sr Unsec 2.125% 3/15/2021 99.695 +95 A3 A+ Healthcare - Managed Care

22-Feb-16 UnitedHealth Group UNH 1,000 Sr Unsec 3.100% 3/15/2026 99.921 +135 A3 A+ Healthcare - Managed Care

Use of Proceeds: Refinancing commercial paper borrowings

8

Recent High Yield Deals



Recent Investment Grade Deals

Year-to-Date Debt Capital Markets Transactions

Amount Rating Issuance

Date Issuer Security ($MM) Moody's S&P Coupon Maturity Price Yield Spread Type Sector

22-Apr-16 Regionalcare Capella Healthcare 1st Lien Notes $800 B1 B 8.250% 1-May-23 100.000 8.250% 659 bp 144A Healthcare - Facilities & Services

Use of Proceeds: To finance the merger of RegionalCare Hospital Partners with Capella Healthcare

8-Apr-16 Quorum Health Sr. Notes 400 Caa1 CCC+ 11.625% 15-Apr-23 98.266 12.000% 1,053 bp 144A Healthcare - Facilities & Services

Use of Proceeds: Spin-off from Community Health Systems

28-Mar-16 Surgery Center Holdings Sr. Notes 400 Caa2 CCC+ 8.875% 15-Apr-21 100.000 8.875% 751 bp 144A Healthcare - Facilities & Services

Use of Proceeds: To repay second-lien term debt, repay the outstanding balance on their revolver and to fund general corporate purposes

4-Feb-16 Vizient Sr. Notes 600 Caa1 CCC+ 10.375% 1-Mar-24 100.000 10.375% 867 bp 144A Healthcare IT

Use of Proceeds: Acquisition of MedAssets’ Spend and Clinical Resource Management and Sg2 businesses

4-Feb-16 Acadia Healthcare Sr. Notes 390 B3 B 6.500% 1-Mar-24 100.000 6.500% 479 bp 144A Healthcare - Facilities & Services

Use of Proceeds: Acquisition of U.K.-based behavioral healthcare services provider Priory Group

28-Jan-16 Centene Corp Sr. Notes 1,400 Ba2 BB 5.625% 15-Feb-21 100.000 5.625% 423 bp 144A Managed Care

28-Jan-16 Centene Corp Sr. Notes 1,000 Ba2 BB 6.125% 15-Feb-24 100.000 6.125% 420 bp 144A Managed Care

Use of Proceeds: To fund the acquisition of Health Net

9

Source: Loan Connector

New Issue

Forward Calendar

None

Loan Market Update

Tranche LIBOR Upfront

Date Company Name Tranche Type Amount Deal Amount Maturity Date Spread Fee Moody's S&P Lead Arranger(s) Use of Proceeds Phase

28-Apr-16 EyeCare Services Partners Other Loan $61,000,000 $61,000,000 NA NA NA NR NR NXT Capital LLC General Purpose Completed

22-Apr-16 St. Lawrence Health Systems, Inc. Term Loan 6,500,000 6,500,000 22-Apr-23 NA NA NR NR NA General Purpose Completed

1-Apr-16 Trilogy Health Services Inc Revolver/Line >= 1 Yr. 60,000,000 60,000,000 21-Mar-21 400 NA NR NR Capital One Bank, Wells Fargo & Co General Purpose Completed

10



Yield Curve Suggests Continued Low Rate Environment Forward LIBOR Rate

10-yr UST Yield Remains Near All-Time Lows % of Time the 10-yr UST was Below a Specific Yield (1962 – Present)

Current Interest Rate Environment

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

3 Mo 6 Mo 12 Mo 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 30 Yr

Forward Yield Curve - April 31 Yield Curve -March 31

Forward Yield Curve - Year End 2016

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16

0.1%3.5%

7.2%10.7%

13.1%

19.3%

29.5%

36.5%

42.0%

49.1%

56.5%

62.8%

70.1%

77.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0%

15 28 14 8 6 13 10 0 0 4 2 7IPO Pricings

by Month

$0.0

$2.5

$5.0

$7.5

$10.0

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Dea

l Val

ue

Prior Period

Current Period

68 57 52 47 27 23 44 32 31 18 51 31FO Pricings

by Month

$0.0

$10.0

$20.0

$30.0

$40.0


Dea

l Val

ue

Prior Period

Current Period

Follow-Ons LTM ($ in billions)

11

Sources: Capital IQ, Dealogic, Lipper


Initial Public Offerings LTM ($ in billions)

LTM Aftermarket Follow-On Performance (%) Relative IPO Aftermarket Performance

Equity Capital Markets: Deal Volume & Aftermarket Performance Trends

2-Year Avg. Proceeds 2-Year Avg. Proceeds

(10.0%)

(7.5%)

(5.0%)

(2.5%)

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%


1-Day 1-Week 1-Month

60

70

80

90

100

110

120

130

Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16

Renaissance IPO Index

Russell 2000 Index

NASDAQ Composite

12

Source: Dealogic

Healthcare Services Initial Public Offerings

Healthcare Services Follow-On Offering

Equity Capital Markets: Year-to-Date Healthcare Services Pricings

Healthcare Services Convertible Offerings

Healthcare Services IPO Backlog

None

Filing Pricing Deal Market Shares % Filing Offer Pricing % Change in Price

Date Date Issuer Ticker Value Cap Offered Secondary Range Price Range 1 Day 1 Week 1 Month Healthcare Sector

08/31/15 04/20/16American Renal Associates

Holdings IncARA $190.0 $654.0 8.625 0% 20.00 - 23.00 $22.00 In Range 20.5% 25.0% NA Healthcare Services

Mean $190.0 $654.0 8.625 20.5% 25.0% -

Median $190.0 $654.0 8.625 20.5% 25.0% -

Filing Expected Expected

Date Date Issuer Ticker Value Sector Issuer Description

4/22/16 TBA Performance Health Holdings Corp PHC $100.0 Healthcare Services Health and wellness company that offers pain management, fitness, therapy, and wellness products

Filing Pricing Deal Market Shares % Offer Discount to % Change in Price

Date Date Issuer Ticker Value Cap Offered Secondary Price Filing Last 1 Day 1 Week 1 Month Healthcare Sector

03/02/16 03/03/16 PRA Health Sciences Inc PRAH $214.0 $2,693.0 5.000 0% $42.70 4.4% 4.4% 2.9% 1.3% 3.0% Healthcare Services

01/05/16 01/06/16 Acadia Healthcare Co Inc ACHC 702.0 5,029.0 11.500 0% 61.00 (4.1%) (0.9%) 0.9% (4.7%) (3.3%) Healthcare Facilities

Mean $458.0 $3,861.0 8.250 0.2% 1.8% 1.9% (1.7%) (0.1%)

Median $458.0 $3,861.0 8.250 0.2% 1.8% 1.9% (1.7%) (0.1%)

Announcement Date Target(s) Buyer(s) Target Business DescriptionDeal Value

($mm)

04/27/16 ExamWorks Group, Inc. Leonard Green & Partners, L.P.Provides independent medical examinations, peer and bill reviews, Medicare

compliance, case management and other related services$1,981

04/26/16 Lifeguard Medical Solutions, LLC Allied 100, LLCDistributes automated external defibrillators and offer an online monitoring system, onsite

training programs and medical oversight servicesNA

04/26/16Healthsouth Rehabilitation Hospital Of

Beaumont LLCPost Acute Medical, LLC

Owns and operates a rehabilitation hospital that provides treatment for strokes,

amputations, arthritis, brain injuries and other injuriesNA

04/22/16 Dimensional Management Corporation Waud Capital Partners, L.L.C. Offers dental care services and operates 23 dental offices NA

04/21/16 Stat Read, LLC Teleradiology Specialists, PLLC Provides radiology report reading services under the name UrgentRad Radiology NA

04/19/16 Prospective Payment Specialists, Inc. Receivables Outsourcing, Inc.Provides compliance and revenue cycle services to teaching hospitals, regional medical

centers, and critical access hospitalsNA

04/19/16 Today's Options of New York, Inc. Molina Healthcare, Inc.Offers healthcare plans to its members in Central NY including Medicaid Managed Care,

Child Health Plus and health benefit exchange plans41

04/19/16 Avadyne Health, Inc. MTS Health Investors, LLCProvides outsourced revenue cycle management services and technology solutions to

hospital clientsNA

04/18/16 The Meadows of Wickenburg, Inc. Kohlberg & Company, L.L.C.Provides addiction and psychological trauma treatment services for conditions including

trauma, PTSD, alcohol addiction and more180

04/11/16 Sequence Therapy, LLC Advantis CorporationProvides pain management and physical therapy services and develops digital

application for healthcare providersNA

04/11/16ACSH Urgent Care of Virginia and ACSH

Primary Care of VirginiaUrgeMedical Group, Inc.

ACSH Urgent Care of Virginia, LLC and ACSH Primary Care of Virginia, LLC own and

operate urgent care centers1

04/11/16 Wunderlich, M.D., S.C. DuPage Medical Group, Ltd.Offers services for chronic medical conditions; evaluation of new illnesses, pre-surgical

clearance, surgery and prevention screeningsNA

04/08/16 Mountain View Medical Group, P.C. DaVita HealthCare Partners Inc. Operates as a multiple-physician medical practice group in the Pikes Peak region NA

04/08/16Autoclave Testing Supplies and Autoclave

Testing ServicesMesa Laboratories Inc.

Autoclave Testing Supplies, Inc. and Autoclave Testing Services, Inc. distribute dental

sterilizer testing productsNA

04/08/16 Aging Family Services, Inc. LifeLinks,LLCProvides professional geriatric care management services to older adults in Raleigh,

Durham, and Chapel HillNA

04/06/16 Evergreen Rehabilitation, LLC Encore Rehabilitation Services, LLCProvides physical, occupational, and speech therapy services to long-term care

communities and outpatient therapy centersNA

04/06/16 Legend Healthcare, LLC The Ensign Group, Inc.Offers nursing and rehabilitative care, restorative care, physician services coordination,

pharmacy services, social service and care planningNA

04/06/16 Prairie View Healthcare Community Welcov Healthcare, LLC Operates a 52-bed nursing facility providing transitional, long-term and memory care NA

04/05/16 Upper Valley ENT Premier HealthNet Offers ears, nose and throat treatment services NA

04/05/16 Forty seven Medical Office Facilities Physicians Realty Trust Forty seven Medical Office Facilities throughtout the United States 611

04/04/16 Moore Physical Therapy and FitnessProfessional Orthopedic and Sports

Physical Therapy, P.C.

Offers physical therapy services, MLS Laser Therapy, post-surgical recovery, and athletic

training, fitness, ergonomics and nutrition servicesNA

04/04/16Victory Park Nursing Home and Victoria

Retirement CommunityCareTrust REIT, Inc.

Victory Park Nursing Home and Victoria Retirement Community comprises nursing and

retirement facilitiesNA

04/04/16 Cedar Falls Health Care Center CareTrust REIT, Inc. Cedar Falls Health Care Center comprises an 82-bed skilled nursing facility 5

04/04/16Kindred Healthcare, Inc., 12 Long Term

Acute Care HospitalsCurahealth, LLC 12 Long Term Acute Care Hospitals 28

04/04/16 Children's Emergency Services, Inc. Team Health Holdings, Inc. Provides emergency healthcare services for Dayton Children's Hospital NA

04/04/16 North Florida Anesthesia Consultants, Inc. Sheridan Healthcare, Inc.Provides anesthetic services for surgery centers and physician offices in Jacksonville,

Florida and the surrounding areasNA

04/01/16 Physicians' Specialty Hospital, LLC Community Health Systems, Inc.Offers spine surgery, urology, podiatry, pain management, minimally invasive general

surgery, bariatric surgery and other surgery servicesNA

04/01/16 CryoGen Management Signet Interactive LLCOffers cryogenic services including careful preparation, cooling and long-term patient

care in liquid nitrogenNA

13

Source: Capital IQ

M&A Activity

April 2016 March 2016 January 2016 December 2015 November 2015 November 2015 September 2015

has acquired has acquired

has acquired has been acquired by

Follow-On Offering Follow-On Offering Senior Secured Credit Facilities Senior Secured Credit Facilities Senior Secured Credit Facilities

a portfolio company of $2,553,750,000

$401,625,000 $466,777,280 Senior Unsecured Notes $150,000,000

$545,000,000 Joint Lead Arranger, Joint Lead Arranger,

Left Bookrunner Exclusive Buy-Side Advisor Exclusive Buy-Side Advisor Co-Manager Co-Manager & Joint Bookrunner & Sole Bookrunner &

Administrative Agent Administrative Agent Administrative Agent

14

Select Transactions

For additional information on KeyBanc Capital Markets,

please contact any of the individuals listed below

127 Public Square

Cleveland, OH 44114

575 Fifth Avenue

New York, NY 10017

227 West Monroe Street

Chicago, IL 60606

Vamsi Botla

Director

Healthcare

(312) 730-2708

[email protected]

Healthcare Investment Banking Team

Karan Jolly

Director

Healthcare

(216) 689-4535

[email protected]

Colby Kittrell

Vice President

Healthcare

(212) 476-7463

[email protected]

Mike Jackson

Managing Director & Segment

Leader – Diversified Industries Group

(216) 689-4441

[email protected]

Jim Lilly

Managing Director

Healthcare

(212) 476-7460

[email protected]

Slava Girzhel

Managing Director

Healthcare

(216) 689-4010

[email protected]

Steve Alcauskas

Managing Director

Healthcare

(212) 476-7430

[email protected]

Select KeyBanc Capital Markets Transaction Experience

Documents

Healthcare Services Sector Review: Publicly-Traded ... fileHealthcare Services Sector Review: Public Comps Stock Price Equity Total Last Twelve Forward Company Name As Of 52-Week Market