AtlantiCare at a Glance

• Medical Center founded in 1898; Health System founded in 1993

• 2 Hospitals / 600-beds / Unique Regional Services

• Over 60 additional healthcare facilities in Atlantic, Cape May, and southern Ocean Counties

• 5,300 employees and 600 physicians

• $50 million in charity care provided in 2010

• A 2009 Malcolm Baldrige National Quality Award Recipient

Annual Economic Contributions of HospitalsAtlantic County Hospitals

• Total expenditures: $767.3 million

• Total full time equivalent jobs: 4,465

• Total employee payroll: $290.0 million

• Estimated state income taxes paid by employees: $16.0 million

• Purchased Services: $84.4 million

• Uninsured patients treated at Atlantic County hospitals: approximately 97,000 occasions-of-service

Source: New Jersey Hospital Association

Health Care and Employment Growth

• Latest U.S. Bureau of Labor Statistics Change in Employees Statistics (September)

– Total non-farm employee growth August-September: 103,000

– Health Care Segment: 44,000

• Greater than 50% of job growth in the Ambulatory Care area

• Latest U.S. Bureau of Labor Statistics Unemployment Rate by Industry (September)

– Education and Health Services ranked 2nd behind Financial Activities as having the lowest, private sector unemployment rates at 5.7%

Health Care and Employment Growth(continued)

• New Jersey Department of Labor Market and Demographic Research Reports

– 3 of every 5 jobs created over the last twenty years has been in the healthcare industry

– Similar to national trends, out-of-hospital employment growth has lead the sector

– There continues to be strong short and long-term demand for nurses

• Over the next 10 years there will be an additional 10,000 RNs projected

• However, Home Health Aids are projected to grow by 40,000 over this period

Recent Healthcare Facility InvestmentExamples

AtlantiCare• ARMC City Campus Harmony Pavilion (Atlantic City): $130M; 200,000 sf, 2007• ARMC Ambulatory Campus (Hammonton): $20M; 40,000 sf, 2011• ARMC Mainland Campus Project (Pomona): $150M; 200,000 sf, Planned

Shore Medical Center• Hospital expansion for surgical services (Somers Point): $125M; 138,000 sf, 2011

Southern Ocean Medical Center• Emergency Department Expansion (Manahawkin): $20M

Virtua• Hospital relocation and expansion (Voorhees): $600M; 680,000 sf, 2011• Ambulatory Care Campus Development (Moorestown): $96M; 200,000 sf, 2013

Future Healthcare Investment

• Creating the Integrated Network of Facilities for Population Health

– Ambulatory and Physician Practice vs. Inpatient Hospital focused

• This is where the greatest job growth is projected over the next 10 years

• AtlantiCare Special Care Center in Galloway: 15,000 sf

• AtlantiCare Urgent Care Center / Physician Complex in Somers Point: 15,000 sf

• AtlantiCare Physician Group Specialty Center in EHT: 15,000 sf

• Partnering with Primary Care and Specialty Providers around the New Model of Healthcare

• Partnering with Employers, Commercial, and Government Payers around the New Model of Healthcare

• Substantial Information Technology Investments to facilitate the integration required for success in the New Model of Healthcare

Conclusion

• Healthcare will continue to be a major source of economic activity and growth in this region

• Facility Investment emphasis will shift from Inpatient to Ambulatory and Physician Network Development

• Employment growth will continue to focus on clinical areas required to support the New Health Care Model

• The percentage of Investment will start to shift from Bricks and Mortar to People and Technology

• There is still a great deal of uncertainty for us to plan for