CoreTrust Capabilities OverviewMedical Device Supply Chain Council

June 4, 2014

Scott Miller, VP Sales, CoreTrust

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Delivering unparalleled cost savings for indirect supplies and services via the collective multi‐billion dollar purchasing power of commercial and healthcare industry leaders.

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Pressures Options

• Vendor price increases

• Deliver cost savings with better service levels

• Finite sourcing resources

•  Reverse Auctions

•  eProcurement

•  Consultants

Committed Group Purchasing

• Unmatched volume• Aligned decision‐making• Expert‐led, sourcing and 

process rigor

Business Challenges

Increased OperatingMargin Pressure

Innovate to beLow‐Cost Provider

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A History of Creating Value HealthTrustformed

1999

$12B spend

First HR and Procurement 

Summit

2008

1,400 HealthTrust members$23B spend

2013

400 hospitals$8B spend

2005

CoreTrust  formed

2006

HealthTrust Europe expansion

Global Sourcinglaunch

2010

CoreTrust Europe 

leadership

IT advisory board

2011

750+ CoreTrustmembers

$3B indirect spend75+ categories

Today

Consorta merges

AdvantageTrustlaunches

2007Blackstone,KKR & Bain  sponsor

2007

415 CoreTrust members, 

sponsored by 6 of the top 10 PE 

Firms

2012

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Aligned, Member‐Driven Model

CoreTrust

Vendor/Supplier

Member

• Savings “audit”• Procurement  Advisory Board• Portfolio reporting

• RFP process• Vendor agreements• Vendor management• Dispute resolution

• Day‐to‐day procurement relationship• Vendor dialogue

Confidentiality agreementOpportunity assessmentAdvisory boards / summitsAccount management

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Working with Industry Leaders

Private Equity CompaniesHealthcare

We work with  7 of the top 10 PE Firms

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Categories:

• General Indirect Spend• Information Technology• Human Resources• Facility Infrastructure

Office Supplies, Paper, PromotionalRental Cars and TravelCorporate Purchase and Travel CardsFurniture, Case Goods, LightingArt, Books, Custom Media, Printing

Broad Coverage – Indirect Spend Portfolio

15%‐20%Average Savings 

AcrossPortfolio

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IT Hardware (PCs, Servers, Printer)Copiers, Multi‐Function DevicesIT Storage and MaintenanceTeleconferencingSoftware DistributionExtended Warranties

Categories:• General Indirect Spend

• Information Technology• Human Resources• Facility Infrastructure

Broad Coverage – Indirect Spend Portfolio

10%‐15%Average Savings 

AcrossPortfolio

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Pharmacy Benefits ManagementLife and Disability InsuranceEmployee Background ScreeningsDrug and Biometric ScreeningsMoving/RelocationEmployee Assistance ProgramsEmployee Purchase Website

Unparalleled Pricing on PBMLeveraging $1B+Spend

Categories:• General Indirect Spend• Information Technology

• Human Resources• Facility Infrastructure

Broad Coverage – Indirect Spend Portfolio

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Doors, Hardware and AccessoriesElevator/Escalator ServiceIce Machines and Medical RefrigerationHVAC Equipment and GeneratorsHousekeeping SuppliesValet Shuttle and Greeter ServicesPaint, Roofing, Walls and CeilingsWater Treatment

Categories:• General Indirect Spend• Information Technology• Human Resources

• Facility Infrastructure

Broad Coverage – Indirect Spend Portfolio

10%‐15%Average Savings 

AcrossPortfolio

• No membership fees– No charge for due diligence 

services or membership

• Member requirements– $1M minimum spend

and at least one vendor conversion

– Participation agreement: 80% compliance in chosen categories

Engagement Requirements CoreTrustMembership

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Sign non‐disclosure agreement

Provide information for market pricing 

analysis

Review savings assessment

Sign participation agreement

Vendors are notified and programs are implemented

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

• Rules of engagement– No benchmarking 

– No conflicting RFPs

Process

Testimonials about CoreTrust

“We believe that CoreTrust is by far the most efficient way to provide leverage agreements to over 20 portfolio companies… and the speed to savings has driven us to continue to use CoreTrust as they add new categories.

‐ Jeff Gallant‐Operating Executive

‐Welsh Carson Private Equity Firm

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Visit www.coretrustpg.com/private‐equity to hear from our Private Equity partners

“By and large, we found that there is no true competitor to CoreTrust. The additional benefits they bring are efficiency, ease of adoption and the ability for our operating companies to provide data and have analytics done by the CoreTrust team.”

‐ Danica Oldford‐Director of Corporate Administration

‐ Onex

Questions about CoreTrust

“CoreTrust provides a one‐stop shop process —meaning they have the ability to take an idea of a new category all the way through execution, and the full resources to make that happen.”

‐ Greg Beutler‐ Operating Partner

‐ The Blackstone Group

CONTACT US

Scott MillerVice PresidentCoreTrustScott.miller@coretrustpg.com615‐344‐3036

Scott SmithermanDirector of SalesCoreTrustScott.smitherman@coretrustpg.com615‐344‐3325

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Appendix: Category Portfolio

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Type Supplier Name Contract Description MWBEService ALLIED BARTON SECURITY SERVICES LLC Security Guard ServicesService AMERICAN EXPRESS Purchase & Travel CardService BEST VENDORS LLC Vending Operations And ManagementService CARTER BROTHERS Security Guard Services YesService CINTAS CORPORATION Document Shredding & Media DestructionService ENTEGRA PROCUREMENT SERVICES Food Procurement & DistributionService ENVIROLIGHT & DISPOSAL, INC. Specialized Recycling Services YesService GUY BROWN Promotional Products YesService HILTON PUBLISHING Custom Publishing YesService HOSPITAL COURIERS CORP Courier ServicesService NATIONAL RENTAL US INC/ENTERPRISE/ALAMO Rental Car ServicesService ORBITZ FOR BUSINESS Travel ManagementService TRUE MEDIA LLC Media Planning & BuyingService VARIES HotelsEquipment INTERIOR DESIGN SERVICES INC Furniture & Case goodsEquipment PITNEY BOWES INC Mailing Equipment and FurnitureEquipment SYNERGY BUSINESS ENVIRONMENTS Furniture & Case goodsSupply AMP&M LLC Promotional Products YesSupply ARAMARK Office Coffee ServicesSupply ARTONOMY INC. ArtworkSupply GUY BROWN Recycled Toner YesSupply HEALTH ENVIRONMENT ART SERVICES LLC Artwork YesSupply KOCH FILTER CORP Air FiltersSupply METRO OFFICE SOLUTIONS INC Remanufactured Toner YesSupply QUANTUM STORAGE SYSTEMS Storage/Mobile Shelving Supply STAPLES ADVANTAGE Office SuppliesSupply STORAGE SYSTEMS UNLIMITED INC Storage/Mobile Shelving Supply THE AMBIANCE GROUP Artwork

General Indirect

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HR BenefitsType Supplier Name Contract Description MWBESupply MEDLINE INDUSTRIES UniformsSupply PHOENIX TEXTILE Uniforms YesService ACRO Temporary Labor YesService ATLAS VAN LINES INC Residential Moving & StorageService BUDD VAN LINES INC Residential And Commercial Moving And StorageService CVS CAREMARK Pharmacy Benefits Management ServicesService DEPENDABLE AUTO SHIPPERS INC Automobile Moving And StorageService EHEALTHSCREENINGS LLC Biometric ScreeningService EWING MOVING SERVICE INC Residential Moving And Storage  YesService GENERAL INFORMATION SERVICES INC Background and Drug ScreeningService GRAEBEL VAN LINES INC Residential MovingService IMPACT HOLDINGS LLC Employee Purchase WebsiteService MANAGED CARE ADVISORY GROUP LLC Settlement Recovery ServicesService METROPOLITAN LIFE INSURANCE Dental ASO ServicesService MULLIN TBG INSURANCE AGENCY SERVICES LLC Deferred Compensation ServicesService PRECHECK, INC. Background and Drug ScreeningService PRUDENTIAL INSURANCE Co. OF AMERICA Life And Disability InsuranceService SIRVA INC Commercial & Residential Moving & StorageService STERLING RESOURCES Background and Drug ScreeningService VALUEOPTIONS INC Employee Assistance ProgramService VAXAMERICA, INC Employee Flu VaccinationsService VETERINARY PET INSURANCE Pet InsuranceService WAGE WORKS Flexible Spending Account/HSA

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Information TechnologyType Supplier Name Contract Description MWBEService CDW IT Storage Products and ServicesService CYRACOM INTERNATIONAL INC Language Translation ServicesService GUY BROWN Managed Print Services YesService INSIGHT DIRECT USA INC IT Storage Products and ServicesService INSIGHT DIRECT USA INC Printer Maintenance ServicesService INTERCALL INC. Teleconferencing, Web  & Video ConferencingService KONICA MINOLTA BUSINESS SOLUTIONS USA INC Managed Print ServicesService LANGUAGE SERVICES ASSOCIATES INC Language Translation Services YesService METRO OFFICE SOLUTIONS INC Managed Print Services YesService NATIONAL RECORD CENTERS, INC. Record & Media StorageService OPTIMAL PHONE INTERPRETERS INC Language Translation ServicesService STAPLES ADVANTAGE Managed Print ServicesService SYSTEM MAINTENANCE SERVICES IT Storage Maintenance ServicesService XEROX CORP Managed Print ServicesEquipment CDW & HP DT/LT, Monitors,  Servers, Printers & PeripheralsEquipment COMMERCIAL SALES & SERVICE TelevisionsEquipment GRAINGER INC TelevisionsEquipment IMAGENABLE TelevisionsEquipment KONICA MINOLTA BUSINESS SOLUTIONS USA INC Copier Equipment & LeasesEquipment RICOH AMERICA'S CORP Copier Equipment & LeasesEquipment SHI Televisions YesEquipment TELEHEALTH SERVICES TelevisionsEquipment Verizon Wireless Wireless mobile phone service & equipmentSupply CDW Software Distribution and ServicesSupply SOFTMART Software Distribution and ServicesSupply XEROX CORP Copier Equipment & Leases

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Type Supplier Name Contract Description MWBEService AFFLINK, LLC Jan/San DistributionService API NATIONAL SERVICE GROUP Fire & Life Safety SystemsService CINTAS CORPORATION Floor Mat, Uniform, Restroom, Tile & Carpet Cleaning Service ECOLAB INC / WATER ENERGY & WASTE Water Treatment Products & ServicesService GARRATT‐CALLAHAN CO. Water Treatment Products & ServicesService JOHNSON CONTROLS INC. Total Building SolutionsService KONE INC Elevator Service ‐Maintenance & RepairService METROPOLITAN HEALTHCARE SERVICES Valet Parking, Shuttle & Greeter ServicesService NETWORK SERVICES Jan/San DistributionService OTIS ELEVATOR CO Elevator Service ‐Maintenance & RepairService SIEMENS INDUSTRY INC Building Systems Controls & ServicesService STAPLES ADVANTAGE Jan/San DistributionService THE STERITECH GROUP, INC. Pest Prevention ServicesService THYSSENKRUPP NORTH AMERICA, INC. Elevator Service ‐Maintenance & RepairService YALE ENFORCEMENT SERVICES Valet Parking, Shuttle & Greeter Services YesEquipment FOLLETT CORP Ice Machines and RefrigerationSupply ENERGY SYSTEMS SOUTHEAST Power GeneratorsSupply GARLAND Roofing Materials & SurfacesSupply GEORGIA PACIFIC Paper ProductsSupply GRAINGER INC Doors, Frames & Hardware, Lighting ProductsSupply HERITAGE BAG COMPANY Can LinersSupply J. REYNOLDS & COMPANY Roofing Materials & SurfacesSupply JOHNSONITE Floor Coverings & AccessoriesSupply MANNINGTON MILLS, INC. Floor Coverings & AccessoriesSupply MCQUAY INTERNATIONAL HVAC EquipmentSupply REMAR INC. Signage ‐ Interior & ExteriorSupply SHERWIN‐WILLIAMS COMPANY Paint and Related ProductsSupply STONHARD Floor Coverings & AccessoriesSupply TREMCO ROOFING Roofing Materials & SurfacesSupply L&W SUPPLY CORP Walls & Ceilings: Building Materials

Facilities Infrastructure