THE NICHOLS MANAGEMENT GROUP, LTD.

THE NICHOLS MANAGEMENT GROUP, LTD.

KEY SERVICES PROVIDED BY

THE NICHOLS MANAGEMENT GROUPTO CLINICAL ANDANATOMIC LABORATORIES

Advisory and ManagementServices to the

Medical Diagnostics IndustryP.O. BOX 1288571 YORK STREETYORK HARBOR, MAINE 03911207.363.8230 TEL207.363.2377 FAXNICHOLSMANAGEMENTGROUP.COM

S E L E C T E D C L I E N T S T O D A T E C L I E N T S

• Aetna/Hartford, CT• Asia Pacific Laboratories/Agana, Guam• BioDiagnostic Labs/Torrance, CA• Blue Cross Blue Shield Assoc./Chicago, IL• Care New England/Providence, RI• Clinical Diagnostic Services/Englewood, NJ• Cottage Health System/Santa Barbara, CA• DaVita Laboratory Services/Deland, FL• Diagnostic Laboratory Services/Honolulu, HI• Galen Health Partners/New York, NY• Genomic Health/San Francisco, CA• Hartford Hospital/Hartford, CT• Horizon Blue Cross/Newark, NJ• IDEXX Laboratories/Portland, ME• Independence Blue Cross/Philadelphia, PA• John Muir Health System/Walnut Creek, CA• KPMG/Chicago, IL• LabCo/Paris, France• LabCorp/Burlington, NC• Mass General Hospital/Boston, MA• Mt. Sinai/New York, NY• Northwestern Memorial Hosp./Chicago, IL• Novartis/Bulach, Switzerland• NYU Health System/New York, NY• Ohio Health/Columbus, OH• PacLab/Seattle, WA• PAML/Spokane, WA• Pathology Inc./Los Angeles, CA• Predictive Biosciences/Lexington, MA• Providence Health System/Portland, OR• Quest Diagnostics/Teterboro, NJ• Ruka/Pyka/Helsinki, Finland• Sonic Healthcare USA/Austin, TX• Specialty Laboratories/Santa Monica, CA• Spectra Lab/Waltham, MA• State of California/Sacramento, WA• Sutter Health System/Sacramento, CA• Swedish Health System/Seattle, WA• Tenet Health System/Dallas, TX• University of Alabama/Birmingham, AL• University of Texas SW/Dallas, TX• Western Connecticut Health Network/Danbury, CT

NMG clients encompass industry leaders and decision-makers in large integrated health systems, independentlaboratories, diagnostic companies, venture-capitalfirms and managed care organizations. NMG advisesa nationwide clientele in the not-for-profit, governmentand commercial sectors of business. Although TheNichols Management Group welcomes short-termprojects, many client relationships span over fiveyears.

M A R K E T- S E N S I T I V E S T R A T E G I E S

NMG has been the driving force behind many of themost successful ventures in laboratory management.It has maintained close ties with the medical venture-capital community, recommending and implementingthe formation of new companies as well as stayingabreast of developments throughout the medical indus-try. It also concentrates its considerable resources ondisseminating information to serve individual andcorporate investors, health-care providers and othermedically-oriented organizations.

I M P L E M E N T A T I O N

Working on-site with key personnel in each area ofneed, NMG provides expertise in improving overalleffectiveness and in implementing such strategies assales force development, market planning, compli-ance/financial auditing, and in selected cases,hands-on management responsibilities.

Due diligence capabilities include third-party eval-uations of the outlook, relative position and value ofpotential candidates for acquisition, divestiture, orstrategic alliance. Since 1989, NMG has performed duediligence studies with a combined transaction valueof more than $1 billion.

ADVISORY SERVICES

> Strategic Planning

> Acquisition, Divestiture and Partnering Services

> Integration of Laboratory Information Systems

> Funding and Resourcing Capital Services

MANAGEMENT SERVICES

> Managed Care Contracting and Reimbursement

> Project, Interim and Turnaround Management

> Quality Assurance Audits and Improvement Plans

> Health System Laboratory Optimization

THE NICHOLS MANAGEMENT GROUP, LTD. (NMG) IS A CONSULTING FIRM FOCUSED ON THE MANAGEMENT AND HEALTHCARE ISSUES

OF CLINICAL AND ANATOMIC LABORATORIES.

O R G A N I Z A T I O N

The Nichols Management Group, LTD., (NMG)provides laboratory management services focusedon lowering costs, increasing revenue, and opti-mizing operations in healthcare organizations. Weprovide our clients the tools and guidance theyneed for positive results, from the planning andimplementation stages of any strategic plan tomanagement support throughout the process.NMG has set the standard in laboratory strategicplanning and operations for more than twenty fiveyears. NMG consultants are experts in strategicplanning, consolidations, mergers, acquisitions,and divestitures and laboratory operationsimprovement.

DAVID NICHOLS, MBA & NMGPresident & FounderSince founding NMG, Mr. Nichols has been funda-mental in identifying, negotiating and closingeleven acquisitions worth over $1 billion, andlaunching three start-ups worth $750 million. Mr.Nichols provides laboratory planning strategy andimplementation services for a number of hospitalsystems, independent laboratory, biotechnologyand managed care clients. He has conductednumerous industry seminar presentations and hasfrequently been quoted in The New York Times, TheWall Street Journal and other leading publications.

SCOTT ALLOCCOMr. Allocco has extensive experience in state andfederal laboratory regulatory compliance and man-aged care contracting. He advises clients to providestrategic public affairs leadership, create new busi-ness opportunities and expand into new marketswhile utilizing his knowledge of both private andgovernment payer systems to maximize coverageand reimbursement.

ROBERT DECRESCE, MD, MBA, MPHDr. DeCresce possesses extensive experience in allaspects of laboratory operations as a pathologist.He has also published extensively on laboratoryautomation, workflow, and laboratory economics.He has served on the editorial boards of LaboratoryMedicine, Clinical Laboratory Management Review,Human Pathology, Medical Laboratory Observer,Physician Office Laboratory Advisor and CAPToday.

MARK EPPLY, CPA, MBAMr. Epply has a strong background in the financialaspects of the clinical and anatomic laboratoryindustry. He was previously the Chief FinancialOfficer of PathLab, Inc. where he was responsiblefor the company’s financial management, budgetingand financial reporting and analysis.

THOMAS HIRSCH, MBAMr.Hirsch has an extensive background in consulting,financial management, and operations of hospitaland independent laboratories. Mr. Hirsch has beenan industry leader working with institutions anddeveloping innovative solutions to enhance lab per-formance for thirty years

HAROLD KISNER, PhD, MBADr. Kisner has extensive experience in the technicaland operational aspects of clinical and anatomicesoteric laboratories. Dr. Kisner is a nationally rec-ognized expert in instrument selection, workflowdesign and optimization, and laboratory automation.He also consults with several in-vitro diagnosticcompanies, serves on several scientific advisoryboards, and advises private equity firms on invest-ment in the diagnostics sector.

DREA LANGSTON,MBAMs. Langston has hands on knowledge and experiencein laboratory field service, customer service operations

andmarketing. She possesses an innate understandingof meaningful use criteria and connectivity solutionsfor enhancing customer relations.

ROBERT LEWISMr. Lewis is a laboratory operations expert withextensive experience in management and finance.Mr. Lewis has held several C-Level positions at variouslaboratory and healthcare organizations and is anexpert in enhancing profitability, organization structureand laboratory design. He also serves on committeesat the American Association of Clinical Chemistry(AACC) and the Medical Group ManagementAssociation.

MIKE MCNULTYMr. McNulty is a senior diagnostics executive pos-sessing strategic expertise in business developmentand laboratory operations. He is also experienced inlaboratory in-vitro diagnostics development andcommercialization. Mr. McNulty has held numeroussenior positions at large independent laboratoriesand Board of Director positions.

MIKE NAPOLITANO,MPAMr. Napolitano has lab experience across multi-siteoperations, contract negotiations, process improve-ment and interim laboratory management. He hasheld executive positions at a number of laboratoriesand has over 25 years of experience in leading bothNational and Regional laboratory operations.

MARILYN OWENS, PhD, MBADr. Owens has extensive experience in esoteric andanatomic pathology reference laboratory operations.Dr. Owens is an expert in developing and establishingflow cytometry, immunohistochemistry, imageanalysis, cytogenetics, infectious disease andmolecular genetics laboratories. Dr. Owens is wellknown for technology transfer, innovative newproducts and product launch skills. She is an expert

O U R C O N S U LT A N T S

in next generation sequencing test developmentand strategy.

LOUISE PELTIERMs. Peltier is a laboratory executive with extensiveexperience in regulatory affairs including directagency interactions in the US, Canada and EU. Shehas experience in developing regulatory strategy atall development stages for in-vitro diagnostic, ther-apeutic biologics and new chemical entities andadministration of regulatory compliance programs.

KURT ROGERS, CPA, MBAMr. Rogers is a senior financial laboratory executivewith expertise in financial modeling, reporting,budgeting, valuations, operations cost improvement,benchmarking and due diligence activities. He hasserved in senior executive positions at severalnational laboratories where he cultivated growth inpartnership and outreach revenues.

WAYNE WECKSLER, PhD, MBADr. Wecksler has developed immunochemistry andtherapeuticdrugmonitoring tests.Upon leaving researchanddevelopment hemoved into laboratory operationsmanagement at theworld’s largest esoteric laboratory.Dr.Wecksler is currently serving as the NMGGeneralManager of the largest clinical laboratory betweenSan Francisco and Los Angeles, California.

SONNY VARADAN, MBA, PMPMr. Varadan possesses a strong software design anddevelopment background in healthcare infrastructureand financial applications environments. He haspreviously served as the Chief Information Officerat the largest network of outreach clinical laboratoriesin theUnited States. He is a highly creative, organizedand analytical consultant with proven capabilities inIT led laboratory strategy. Key skills include strategicplanning, organizational design, operations, perform-ance audits and project management.