Guiding Successful Settlements Between Insurance Companies and Their Customers

1. Guiding Successful Settlements Between Insurance Companies and Their Customers CRG Solutions Strategic Thinking, Meaningful Results 888-870-3143 www.crgsvcs.com

2. CRG is a unique consulting firm specialized in providing medical equipment guidance and decision support to healthcare providers and healthcare support companies Since 1996, by combining current technology expertise with best in class business practices, we have assisted Clients to efficiently plan, acquire and maintain high technology medical equipment We specialize in the valuation, specification, planning, and acquisition of high tech equipment, as well as providing guidance in the resolution of difficult maintenance and equipment replacement issues Our Clients include imaging centers, hospitals, international insurance companies, Fortune 100 companies and the top seven largest healthcare systems in the country Who We Are

3. How We Work With Insurers • CRG assists insurers nationwide and internationally in the risk assessment and claims settlement of medical equipment losses • We apply the expertise and skills developed over many years assisting hospitals plan, acquire, maintain and salvage medical equipment to assist insurers achieve fair claims settlements • Our back office and field teams work with underwriters and adjusters to reduce risk and to minimize manufacturer overcharges

4. Our Methodology • CRG works closely with adjusters to minimize costs while ensuring that both the insured and insurer are treated fairly and professionally • From Underwriting assistance, to compete claim management, to desktop claim reviews, CRG works with insurers to improve claim outcomes and the insured’s satisfaction • The best return when using CRG services is realized in claims greater than $50,000

5. Craig Gemmill, Senior Partner Over 30 years of senior management in the Healthcare industry assisting organizations of all sizes in the acquisition, deployment and maintenance of high technology equipment Darren Vianueva, Senior Partner Over 20 years of experience in the Healthcare industry, with extensive expertise in capital asset management, service line excellence, and operations improvement George Gallant CRES, Senior Technical Advisor Over 25 years in the Healthcare industry. A Certified Radiology Equipment Specialist (CRES) and a member of various Biomedical Associations and the Association for the Advancement of Medical Instrumentation (AAMI) James Wilson, Senior Associate Over 30 years of experience as an Independent insurance agent, represents CRG Solutions nationally with insurance carriers. Extensive background in medical equipment breakdown programs Leadership Team

6. CRG Insurance Support Services • Underwriting Support • Claims Assistance and Resolution • Equipment Disposal

7. CRG Underwriting Support • Risk Assessment • Desktop Assessments • Client Site Assessments • Risk Mitigation Consulting • Coverage Terms • Equipment Mix • Replacement Considerations • Equipment Valuation • Equipment Evaluation

8. CRG Claims Assistance • Complete Claim Management • Turn-Key Adjuster Support • Full Process Management • Full Process Reporting • Menu Services(Remote or On-Site) • Loss Investigation, Validation and Evaluation • Loss Remediation • Rapid Locator Sourcing for Like Equipment Replacements • New Equipment Sourcing at BIC Pricing • Equipment Deinstallation and Salvage • Adjuster Training • Business Interruption Mitigation • Temporary Rental Equipment Sourcing, Negotiation and Deployment Coordination • Replacement Equipment Sourcing and Expediting

9. CRG Equipment Disposal • Equipment Deinstallation • Complete Process Management • Negotiation of All Deinstallation Costs • Coordination of Deinstallation Process • Equipment Salvage • Individual Sale of High Technology Equipment • Distinctly Improved Results Versus an Auction Process • Complete Coordination of Sale and Removal

10. Our Experience

11. Most medical equipment is purchased by healthcare providers at a deep discount from list price – most insurers pay list price or greater Much medical equipment is insured for new replacement value instead of like replacement value – a difference of 40% to 70% Often, medical equipment is purchased refurbished, but insured for new replacement cost Business interruption can be significantly reduced by rapid deployment of rental equipment and expedited sourcing of replacements What Insurance Underwriters and Adjusters Should Know

12. What Insurance Underwriters and Adjusters Should Know • Exact replacement equipment with warranty is available for more than 60% of medical equipment - at less than 50% of the cost of new equipment • Virtually all medical equipment is repaired using refurbished (not new) parts from the manufacturer and other sources • There is no government requirement that repairs on medical equipment be performed by the equipment manufacturer • Most medical facilities throughout the U.S. use service organizations other than the manufacturer to repair and maintain their high technology equipment

13. Our Claims Process • Adjuster notifies CRG of claim, via fax or online • CRG evaluates the claim information and notifies the Adjuster of recommended actions • Adjuster engages CRG • CRG resolves claim with constant communication with adjuster • Determination if an on-site presence is necessary • Evaluation of cause, if necessary • Confirmation of loss and valuation • Remediation / Mitigation actions as necessary • Negotiations • Rentals • Sourcing • Disposal • CRG provides adjuster with complete Claim report

14. Case Studies CRG Solutions Strategic Thinking, Meaningful Results 888-870-3143 www.crgsvcs.com

15. Claim: > $90,000 loss due to water damage to a new MRI On-site loss evaluation by a CRG engineer uncovered that a fluid line at the top of the MRI cabinet was not secured during the installation resulting in leakage into the electronics within the cabinet. Our inspection further determined that only a portion of the components inside were actually affected, much less than claimed. Outcome: The claim was rejected since the damage was caused by improper installation by the insured. Case Study #1: Claim Evaluation

16. Claim: >$500,000 loss due to water damage to an electron microscope On-site evaluation by a CRG senior engineer determined the claim to be valid and that the only option from the equipment manufacturer was complete replacement with 120 day delivery and no rentals available. Business interruption for 120 days was an issue to both the insured and the insurer. Result: Sourcing by CRG identified an alternate new replacement acceptable to the insured that included a 60 day delivery and an interim rental, at a 24% reduction in cost and virtually eliminating business interruption. Case Study #2: Claim Remediation

17. Claim: $647,000 loss from water damage to MRI CRG was engaged to review repair charges by an equipment manufacturer on a fixed site MRI damaged by a building water leak. CRG conducted an off-site evaluation of all repair records and determined that significant overcharges were made for parts not replaced, excess labor charges, and repairs performed that were unrelated to the water damage. CRG negotiated with the manufacturer for reduction of charges. Result: The manufacturer’s repair costs were reduced by $188,000 Case Study #3: Claim Mitigation

18. Complete Claim Management • Claim: $1,250,000 loss - fire damage to a mobile CT • The insured’s local service provider had declared the unit a total loss. A CRG senior engineer conducted an on-site evaluation within 3 days of notification and: • Determined that damages were repairable • Sourced a facility to completely restore the unit to “like new” condition with full one year warranty • Sourced a rental system, acceptable to the insured, that did not require retraining of the insured’s staff • Coordinated installation of the rental unit and transportation of damaged unit to and from repair facility • Results: Insured back in service in approximately 3 weeks from date of loss, savings of greater than $800K and minimal business interruption loss.

19. Conclusion CRG Solutions Strategic Thinking, Meaningful Results 888-870-3143 www.crgsvcs.com

20. Improved communications with your insured Skilled in communicating with CEO’s, doctors, directors, technicians (operators), repair technicians (service engineers), electricians, parts suppliers, contractors and designers Reduced business interruption Infrastructure and systems to rapidly source alternative suppliers for parts, service, rentals or entire systems Fair claim settlements Recognized experts in all areas of medical equipment pricing and repair Engineering expertise to accurately evaluate cause and remediation costs Extensive knowledge on manufacturers’ and service organizations’ pricing and performance practices Reduced Salvage costs Risk reduction assistance Flexible pricing options with significant ROI Why CRG Makes Sense

22. CRG Engagement Options • Annual Retainer Program • Reduced Hourly Fees • Priority Response • Optional Underwriter/Adjuster Training • Hourly • Percent of Claim • Contingency Percentage

23. Guiding Successful Settlements Between Insurance Companies and Their Customers CRG Solutions Strategic Thinking, Meaningful Results 888-870-3143 www.crgsvcs.com