Cardinal Health and PTS Announce Agreement to Help Increase Efficiencies and Cost-Effectiveness Across Hospital-Owned Physician Practices

PRESS RELEASE

DUBLIN, Ohio, March 9, 2015 — Cardinal Health today announced an agreement with Pathways to Success Physicians, LLC, (PTS) that can help health system executives and hospital site managers increase efficiencies and cost-effectiveness across hospital-owned physician practices.

Via the agreement, Cardinal Health will market to Integrated Delivery Networks (IDNs) PTS’s financial and operational benchmarking, analysis and insight on managing growing networks of hospital-owned physician practices.

“We know that IDNs are looking for actionable data and best practices they can implement system-wide to improve efficiencies and meet financial goals,” said Steve Inacker, president of Hospital Sales and Services at Cardinal Health. “PTS analytics provide reliable, targeted data that executives and site managers can use to develop concise action plans to improve economic performance for each physician and practice.”

The service offering includes dashboard capabilities that can help identify key levers for practice profitability and reimbursement. Reports can help identify a system’s most profitable practices and most productive physicians; index overall compensation, productivity and staff expenses; and identify potential savings opportunities.

PTS analytics enable health care executives and physicians to:

• Understand physician practice performance relative to regional benchmarks and top performers within or outside of their system
• Isolate key drivers that affect productivity and net physician investment
• Quantify financial impact, prioritize opportunities, and set rational targets for improvement
• Encourage better alignment of providers to help maximize health system referrals
• Understand systemwide revenue streams
• Monitor and measure events impacting reimbursement, penalties and incentives from CMS and other managed care agreements

“Anecdotally, we know that there are benefits to integration across points of care on the continuum,” said Inacker. “As we continue the evolution from a volume-based reimbursement model to one focused on value and quality of care, we want to help health systems pinpoint the best practices that will help the economics of care align with those synergies. This is our opportunity to use real data — not survey results or opinions from self-reported national groups – to do that.”

The service will be offered under the name PTS DataPath and Patient Care Optimizer.

"Our relationship with Cardinal Health will broaden the awareness and availability of our unique physician practice business analytics and enable us to help IDNs improve the business performance of hospital-owned physician offices,” said Penn Krause, chief executive officer of PTS.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $91 billion health care services companythat improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helpspharmacies, hospitals, ambulatory surgery centers, clinical laboratories and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #22 on the Fortune 500, Cardinal Health employs 34,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and@CardinalHealth on Twitter.