Empowering Healthier Lives

Agenda

• Community-Based Member Services and Population Health

• Introducing Rite Aid, Heritage and Cornerstone

• Introducing the Health Alliance Program

• Implementing the Health Alliance Program

• Program Results

• Conclusions

Community Services & Population Health

Population health requires community-based member touch points beyond the PCP’s office

Disease Management Programs Senior and Community Centers, Health Fairs

Apps and Other Web-Based Media Alternate-Site Care Delivery Socioeconomic Assistance

Public Agencies

Leveraging the PCP’s Office

Primary Care

Community Access

Case Management

Home Care

Lab, Imaging,

Ancillaries

Urgent Care

Emergency Care

Ambulatory Care

In-patient Specialty

Care

Achieving the Triple Aim

Disease Management Programs Work

427.1

1521.55

306.85

926.86

0

200

400

600

800

1000

1200

1400

1600

Admits/1000 Bed Day/1000

Overall admits/1000 and bed days/1000

July to December 2013

September 2014 to February 2015

* Heritage Care Management Data

Attributes of Alternate Site Delivery

Pharmacists

Coaches

Associates

Healthcare Delivery Ecosystem

Population Health Management Ecosystem

Program operating playbook 50MM customers National platform

Pharmacy data

Two-way data exchange with

physicians

Population management analytics Predictive modeling

Evidenced based guidelines Patient education and decision support

Heritage and Cornerstone Physicians

(any MU2 EHR)

Patient information (conditions, meds, coaching progress, etc.)

Patients

A Vital Aspect in the Continuum of Care

Leading National Retail Pharmacy Chain

4,500+ stores

$27B in annual revenue

Approx. 300M prescriptions filled each year

26% of the US population visits a Rite Aid at least once each year

Strong National Footprint

Rite Aid States / Store Count

Rite Aid Distribution Centers

As of 8/29/2015

139

13

72

1

575

22

20

276

10 224

116

81

62

26 93

91

224

537

104

79

191

37

68 146

44 77

257

42

7 D.C.

179

605

141 MD

Envision Rx

Retail Healthcare Strategy

Our Mission: To Improve the health and wellness of our communities through engaging experiences that provide our customers with the best products, services and advice to meet their unique needs.

Consumers / Patients Rite Aid / Retail Healthcare

Third-Party Payers

Traditional Providers

• Traditional, Specialty & Expanded Pharmacy Services

(Rite Aid Pharmacy)

• Convenient & Urgent care / Telehealth (RediClinic/HealthSpot)

• In-store & Remote Coaching / Nurse Line / Patient

Education / Analytics (Health Dialog)

PBM/Mailorder/Specialty Pharmacy (EnvisionRx/Orchard)

Need New Picture

2010 2011 2012 2016

March – PCA Program launched – Adoption of new Cornerstone

Credo July

– Service Lines implemented October

– Shareholders vote to move to PFV

January – Value-based compensation formula

implemented February

– Care Outreach & Life Care Clinics launched – Transitions of Care implemented – Launch of CHESS

November – Rite Aid Alliance – Labcorp Partnership – Strategic Partnership with WFBMC &

CHESS

January – CHC goes full-risk – CHESS MSSP ACO – CHESS Select – Lightbeam launch – Nephrology Medical Home Launched – Touchcare telemedicine begins – Lovongo launched

April – Cornerstone Convenience Care opened

at Premier building

December – CHC goes live on

Humedica Mindshare

2015

January – CHC & Oliver Wyman Redesign – Care Pathway Redesign – Optum & Teradata Tech partners – VBR: Negotiating Contracts

March – Personalized Cardiac Care Program launched

April – Personalized Cancer Care w/ embedded Primary Care

launched June

– CHC opens its first practice in Hickory July

– MSSP ACO Personalized Primary Care Program launched

2013 2014

January – 13 CHC practices earn 2011 PCMH Recognition – COPD Model Launched

March – FastMed partnership

April – Cornerstone Convenience Care opened at

Westchester building July

– Shareholders approve Cornerstone Compact December

– Gainshares paid out – Catawba Valley Medical Center signs contract

with CHESS

Cornerstone Timeline

1995

January – Cornerstone Health Care, PA

formed – CHC on EMR

January – Westchester Building built – Extended and weekend hours

now offered

2007

January – Premier Building built – NCQA Medical Home designations

2008

Heritage at a Glance

• One of the largest integrated healthcare delivery systems in the US

• Patient-centric, physician-driven model designed and operated for managing care

• Significant scale with operations in California, New York, Arizona, and beyond

• Preferred full-risk partner for health plans

• Unique delivery model focused on quality outcomes

Total enrollment: 1M+

Primary Care Physicians: 4,000+ Specialist Physicians: 33,000+ Facility-Based Physicians: 1,000+ Acute Care Contracts: 150+

35-Year Track Record of Success

15

1979 1984 1992 1994 2003 2006 2008 2009 2010

Heritage Medical Group

Desert Medical Group

Oasis Independent

Medical Associates

Regal Medical

Group

Heritage Victor Valley

Medical Group

Coastal Communities

Physician Network

Sierra Medical Group

Lakeside Medical Group

Affiliated Doctors of

Orange County

High Desert Medical

Group

Bakersfield Family

Medical Center

Heritage Provider

Network

2011

Arizona Health

Advantage

1996

Healthcare

Partners IPA

1982 2014 2015

Rite Aid Health

Alliance

Trinity Health

Partnership

Fresenius

Partnership

Introducing the Health Alliance Program

Program Aspects

Medication Management Comprehensive Medication

Reviews Medication Adherence Nutrition Counseling Diabetes Education Smoking Cessation

Weight Loss Education Health Coaching Health Literacy

Value & Efficiency

Provides support and motivation to patients

along their journey to achieve favorable

health care outcomes and increases

quality of life

Requires the development of a trusting relationship with the patient and

uses techniques such as motivational interviewing to elicit patient

engagement during the process

Referral Process

PCP and Case

Management

Electronic referral and limited access to patient’s record Patient care plan

returned to PCP

PCP and Case

Management

Touchpoints in between physician office visits

Medication Management Comprehensive Medication Reviews

Medication Adherence Nutrition Counseling Diabetes Education Smoking Cessation

Weight Loss Education Health Coaching Health Literacy

Providing Community-Based Health Management

Program Overview

Chronic and poly-chronic population health management program

Extension of your practice; Convenient In-store face to face visits, supplemented telephonically

Physician-identified wellness goals & comprehensive medication reviews

Bi-directional data exchange of care coach document

Connects Patients with an Extended Care Team

Targeting Patients with Multiple Chronic Conditions

CHF

Diabetes

Hypertension

Hyperlipidemia

COPD

Depression (as comorbid)

Outcome: Patients Manage and Improve Their Health

Health Alliance Targets Patients with Multiple Chronic Conditions

Care Coach Activities

Exercise Coaching

Nutrition / Weight Mgmt.

Tobacco Cessation

Pharmacist Activities

Medication Reconciliation

Comprehensive Med. Review

Medication Adherence

Integrated Care Team Within Health Alliance

Implementing the Health Alliance Program

Health Alliance Locations – Cornerstone Healthcare

RAHA Stores Cornerstone Offices

Health Alliance Locations – Heritage

RAHA Stores

Dedicated pharmacist and coach team

Appropriate ED / hospital utilizations

Frequent, extended interactions

Improved health status

Personalized advice & support

Better health literacy

Out-of-pocket cost savings

Greater medication adherence

Convenient locations

Higher quality of life

Patient Benefits Value to Cornerstone and Heritage

Patients Improve Their Overall Health Status

Improved outcomes

Lower cost of care

Increase market share

Collaborative relationship

Patient stratification, outcomes data and analytics

Benefits all Stakeholders

Extending Physicians’ Practices

Convenient locations for patients

Highly-trained coaches and pharmacists

Relevant healthcare merchandise

Trusted healthcare brand

Bi-directional data exchange

Patient ID and stratification

Participating physicians

Data for initial patient ID and stratification

Support for establishing data exchange

Alerts for urgent situations

Ongoing pt. referrals and follow-up

Training and marketing materials

Performance reporting

Cost savings analysis

Patient Success Story

“I never felt stress and I was able to take advantage of my team's reliable enhancements and their knowledge”

“My team invigorated, informed and inspired me”

“My team wove prominent ideals into my thinking; I feel very fortunate”

Patient Success Story

“My HEALTH was spiraling out of control”

“I was doing everything I knew … but it was NOT WORKING”

“Rite Aid along with my physician taught me how to live. I am now so much healthier….I FEEL so much better”

Cornerstone Results

Cornerstone Results

Program Expectations

• Pharmacists as collaborative physician extenders

• Improved medication adherence and comprehensive medication reviews

• Less man-power and more efficient clinical collaboration

• Preventive care

• Better quality of care for patients

• Reduction in admission and bed days

• Clinical values improvement

• Quality measures improvement

Coach Reported Outcomes Data

comprehensive medication review

77%

medication adherence 80%

8.0 lb average

weight loss

63% lowered weight

76% lowered

blood pressure 22%

lowered cholesterol

*

14% tobacco

cessation

HbA1c

1.5% reduction

*

*limited results due to data availability

94% 88% 91% 93%

0%

20%

40%

60%

80%

100%

Overall satisfaction Met healthcare goals Pt/Care Coach Satisfaction Pt/RPh Satisfaction

Rates

High Patient Satisfaction

Telephone Survey

Patient Knowledge Improvement

Telephone Survey

0%

20%

40%

60%

80%

100%

Understand Condition Understand Treatment Symptoms Response

Improved

6th visit

12th visit

66%

77%

74%

86%

62%

80%

Summary

Cornerstone and Heritage are Successfully Integrating Rite Aid Health Alliance into their

Respective Care Organizations in order to Achieve Positive Outcomes

Thank You/Questions?

Empowering Healthier Lives