Presented By:

Daniel J. Patton, MVSc, MBA&

Will Novak, DVM, MBA ,Dipl ABVP

Prepared For:

About Us

Prevent Plans the parent company of Well Pet Plans is a privately held company.

• Prevent Plans-developed specifically for operating plans in human healthcare (Dental, Vision, Chiropractic & Massage).

Well Pet Plans-developed specifically for veterinary medical practices • Proprietary web based system for processing, and management of

veterinary plans. • First preventive healthcare plans available to all veterinary practices.• Flexible and customized for individual practices.• Current offerings include plans for: Adult Dogs, Cats, Puppies & Kittens

Well Pet Plans Overview• Subscription based financial model for veterinary practices.

• Preventive Healthcare Plans for clients Pets/Horses, purchased through a providers practice, and contracted to that providers practice.

• Membership based plans with monthly payments based on annual agreement with automatic renewal.

• No co-pays or deductibles for the member.

• 3 Plan levels for adult dogs and cats, 2 plan levels for puppies , kittens and 2 levels for horses.

• Client and provider choose the plan level that’s the best fit for the clients Pet/Horse and their budget.

Well Pet Plans Services Include:• Client Services - We handle your clients questions and concerns regarding their plans. We

help to close enrollments and keep cancellations to a minimum.

• A/R & Debt Collection – We handle for your practice all related A/R, including: expiration dates, delinquent payments, etc. For those accounts needing further debt management, we provide full collections.

• Payment Processing – We provide every payment option needed, via credit card, debit card and e-check, both monthly and annual.

• Training – We provide training to your staff on how to use our system, enrolling clients, processing, etc.

• Marketing – We provide your practice with State and Federal DOI approved marketing materials and supplies to get you started, and keep you running.

• Legal/Regulatory – We provide all State and Federal regulatory, legal filings and updated marketing material/contracts.

Preventive Plans Overview• Plan design based on corporate practice model.

• 20+ yrs experience in design, implementation and usage of plans.

• 1 million+ plans in use by pet owners.

• In use in 800+/- small animal corporate practices.

• Consistent performance in all regions of the US.

• Key source of profitability, productivity and growth.

*Based On Corporate Plan Data

Well Pet Plans Overview

Key Results

• Practice Saturation Rate for New/Existing Clients• Renewals• Client Loyalty• Summary• Results

Practice Saturation and New Client Targets

On average, a well managed private practice will enroll

• 44% of their active clients

• 28-33% of new clients

*Based on corporate plan data

Practice #A Scottsdale, AZ

Practice results shown are based on (2) quarters of data.

• 255 Total Pets enrolled on plans in 1st & 2nd qtr• 156 Pets, or 61.1% enrolled are existing clients• 99 New Pets/Clients, 38.8% enrolled on plans• Plan Mix: 67.8% Platinum, 11.3% Gold, 20.7% Silver• Platinum Plan- greater revenue and margins

Renewals

Renewal rate 80%+ annually

• Influenced by client service levels

• Influenced by utilization rates

*Based on combined corporate data and Well Pet Plans data

Practice #1 Practice #2 Practice #3 Practice #484.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

2010 Renewal Rates-Well Pet Plans Practices

2010 Renewal Rates-Well Pet Plans

*Data represents a random sampling of practice renewal rates

2010 Well Pet Plan Rate Average: 89.9%/ 2011 - 91.2%

Client Loyalty

Survey results have shown that an average client will use up to 3 veterinary practices for their services.

• Plans decrease client drift• Additional services outside of plan• Average Annual Patient Charges 2-3x

*Based on corporate plan data

Practice #A-Scottsdale, AZ(2 Qtr Results)

• 156 existing clients enrolled Pets on plans.• Clients who enrolled their Pets spent $433 in previous (12) months in practice.• Clients enrolled on plans spent $624, or $193 more in practice than previous (12) months. • 30.9% increase in revenues from existing clients.

Utilization

• Utilization, or the amount of services used annually, on average, is a defining key in plan profitability.• The average practices overall plan utilization is

between 45-55%.• Clients perceived value in the plans provides

strong annual renewals.

Plan Pricing for Practices

• Practices plan pricing is determined based off of many metrics such as: demographics, costs of services/products, average labor costs, etc.• We have nine different pricing levels for

practices.• Plan pricing is finalized by joint decision with

practice and Well Pet Plans.

Example #1

Each Plan the Client is Charged:$89.95 Membership Fee-Horses & Puppies/Kittens, $59.95-Adult Dogs/Cats (One Time)$36.95/Mo. Payment (Avg. Mix)

Well Pet Plans Costs $3.32/Mo./Plan (9% of monthly fee/pet)$10.00/Membership Fee

What the practice receives: Membership Fees (As Stated Above)$33.63/Mo. Payment (Avg. Mix) or $403.56/plan per yrIf the practice has 1500 active clients and just 33% (500) sign up (1) pet$24,975-$39,975 in Membership fees (Depending on Plan Mix)$201,780 per year in subscription fees or $16,815/mo, Not including other fees spent by client outside the plan, which typically increase by 20-30%

Example #2

Each Plan the Client is Charged:$89.95 Membership Fee-Horses & Puppies/Kittens, $59.95-Adult Dogs/Cats (One Time)$36.95/Mo. Payment (Avg. Mix)

Well Pet Plans Costs $3.32/Mo./Plan (9% of monthly fee/pet)$10.00/Membership Fee

What the practice receives: Membership Fees (As Stated Above)$33.63/Mo. Payment (Avg. Mix) or $403.56/plan per yrIf the practice has 2500 active clients and just 25% (625) sign up (1) pet$31,219-$49,969 in Membership fees (Depending on Plan Mix)$252,225 per year in subscription fees or $21,019/mo, Not including other fees spent by client outside the plan, which typically increase by 20-30%

Royal Canin Program

• Practices will offer RC Veterinary Diets to Well Pet Plan clients, at a 15% discount.• Food is added to clients Well Pet Plan, through

our system, and shipped to clients home.• No-Touch product for practices, with residual

food sales, and solid profit margins.

What can our Equine Plans do for your practice?

• We believe that like our small animal plans, you will see similar revenue increases in your equine clients who enroll on plans.

• Equine clients increased likelihood to utilize only your practice .

• By utilizing the Equine Plans, your clients horses will receive the preventive care they need, to help keep them healthy.

Equine PlansEach Plan the Client is Charged:$89.95 Membership Fee (One Time)$38.95/Mo. Payment (Avg. Mix)

Well Pet Plans Costs $3.50/Mo./Plan (9% of monthly fee/horse)$10.00/Membership

What the practice receives $79.95 Membership Fee$35.45/Mo. Payment (Avg. Mix) or $425.40/plan per yrIf the practice has 600 Equine plans enrolled$47,970 in Membership fees$255,240 per year in subscription fees or $21,270/mo, not including other fees spent by client outside the plan.

Results

• Plans move practices from single sales to subscription based model• Increase revenue from existing clients• Consistent Cash Flow• Increased Client Retention • Increased Productivity• Increased Profitability

Summary

• Enrollment rate target for new clients 28%-33%

• Saturation target of 44% active clients

• Renewal target 80%+

• Improved financial performance

• Utilization at 45-55%, but paid at 100%