Blackstone Inc. · NYSE:BX
Blackstone — Equity Healthcare — Vestar HR Leadership Conference (November 2010)
10 slides from Blackstone's conference presentation, Nov 9, 2010
Slide 1: Equity Healthcare Status Update
Equity Healthcare Status Update November 9, 2010 Vestar HR Leadership C f Conference
Slide 2: Health Costs: A Major C-Suite Concern
Health Costs: A Major C-Suite Concern Premiums are Outpacing Wages Why Costs Increase 100% ■ Waste and uneven quality 87% ■ Unhealthy lifestyles 80% 73% ■ Lack of engaged employees 60% 59% ■ G Government t costt shifting hifti 43% ■ Malpractice 40% ■ Provider p payment y systems y 25% 20% 20% 10% 12
Slide 3: The Equity Healthcare Value Proposition
The Equity Healthcare Value Proposition ■ A Private Equity Initiative focused on helping portfolio companies manage health care costs ■ EH uses volume to get below-market rates AND: ◘ Customized clinical model outreaches to at-risk employees Decreases unnecessary care Increases employee engageme
Slide 4: Strategic Focus
Strategic Focus Growth….will look for compatible PE firms, other partners Evolution of the core product….move earlier and later in the health-illness spectrum, more focus on wellness and provider choice Expanded p EH services….more use of the integrated g data base,, more customized recommenda
Slide 5: Equity Healthcare Integrated Clinical Model
Equity Healthcare Integrated Clinical Model Member and Provider Outreach Behavioral 24-Hour Health / EAP Vendors External Vendors Nurse Line EH Model Centers of Medical D provided Excellence Claims A through T P Personal Health Advocate Pharmacy A R Maternity Aetna Claims Preadmission calls E Pharma
Slide 6: Equity Healthcare Reaches Critical Mass
Equity Healthcare Reaches Critical Mass One of the Largest Private Employer Purchasers 6 Participating Private Equity Companies 300,000 members and $1.5B annual spend 34 Portfolio Company Members as of 1/1/2011 TOTAL ENROLLMENT: EMPLOYEES – 144,362 MEMBERS – 298,212 W l Welcome New N V Vesta
Slide 7: Equity Healthcare Model Results
Equity Healthcare Model Results Overall aggregate EH ROI of 13:1 which includes ASO fee reductions and claims savings 3-5% decrease in cost trends due to: ◘ Higher identification and engagement results than standard models ◘ Double digit improvement in population health ◘ Improvement in utilizat
Slide 8: EH Hospital Utilization is Down
EH Hospital Utilization is Down Days/1000 EH BOB 2009 EH BOB 2010 Represents $8.1M in Annual Savings Milliman 180 200 220 240 260 280 300 ER Visits/1000 EH BOB 2009 Represents $1.1M EH BOB 2010 in Annual Savings Milliman 160 165 170 175 180 185 190 BOB and year over year results reflect employers en
Slide 9: What's New with EH
What’s New with EH New CEO (Dr. Robert Galvin) ◘ 20 years on employer side (GE): health benefits, CMO, policy ◘ Primary Care Physician – still doing clinical care Creation of Employer Advisory Group ◘ 8 employers representing full diversity of size, industry, and PE Firms EH website used for n
Slide 10: Portfolio Company Due Diligence Process
Portfolio Company Due Diligence Process ■ EH contract with vendors expires 12/31/11 ◘ Currently in a RFP process with national carriers ◘ Anticipated A ti i t d fifinalization li ti mid-February id F b 2011 ■ EH portfolio company marketing process to begin late February 2011 ◘ Determine if portfolio
Equity Healthcare — Vestar HR Leadership Conference (November 2010) on 6ix