Medassets - Shareholder.com

Jefferies Healthcare Conference
June 24, 2008
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Safe Harbor
This presentation contains forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These statements speak only as of
the dates on which they are made, are based upon current assumptions and expectations, and involve
a number of risks and uncertainties. Investors are hereby cautioned not to place undue reliance on
th these fforward-looking d l ki statements, t t t iincluding, l di bbut t nott li limited it d tto, statements t t t about b t MMedAssets’ dA t ’ bbusiness i
and prospects, statements about the company’s ability to maintain or expand market share within its
industry, statements about the integration of recent or proposed acquisitions, and statements about the
market acceptance of its products and services services. These statements are subject to significant business business,
economic, regulatory, competitive and other risks and uncertainties identified in MedAssets’ Form 10-K
filed with the Securities and Exchange Commission on March 24, 2008. Consequently, actual financial
and operating results may differ materially from those expressed in these forward-looking forward looking statements statements.
MedAssets undertakes no obligation to update or revise any such forward-looking statements.
The MedAssets SEC filings can be accessed for free by visiting the Investor Relations section of the
Company’s Company s corporate website at www www.medassets.com, medassets com or the SEC Web site at www www.sec.gov. sec gov
1

Overview
Leading provider of revenue cycle and spend management solutions focused entirely on
delivering measurable, sustainable financial improvement for hospitals & health systems
� Serving 125+ health systems, 3,300+ hospitals and over 30,000+ alternate site providers
�� Founded in 1999; headquartered in Alpharetta, Alpharetta GA (metro Atlanta); approx approx. 11,600 600 employees
� Major offices: Dallas, TX; El Segundo, CA; Englewood, CO; Cape Girardeau & St. Louis, MO;
MMahwah, h h NJ NJ; SSeattle ttl & Yakima, Y ki WA
� Demonstrated consistent growth, with 2007 net revenue* reaching $209.5 million
� 40.6% compounded annual growth rate from 2004 (~70% derived from organic growth)
� 2007 adjusted EBITDA* was $66.2 million
�No single customer or GPO vendor accounts for more than 4% of total net revenue
* Gives effect to the acquisitions of MD-X and XactiMed, and the 2006 and 2007 Financings as if they had occurred at the beginning of the period
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Business / Investment Highlights
Compelling value proposition for hospitals: improve margins and operating cash flow
� Comprehensive, customer-centric solutions deliver measurable and sustainable financial
improvement through increased revenue capture and reduced supply cost trends
$6.5 billion opportunity in underpenetrated market with strong growth potential
� Underlying 4-6% growth in hospital supply expenses
� Complex and ever-changing reimbursement environment drives need for RCM expertise
Strong organic growth profile with recurring and predictable annual revenues
� Highly visible due to multi-year contracts and 85+% contractually-recurring revenue
� Organic growth driven by share gains and successful growth of acquired businesses
3

Hospital Industry – Financial Challenges
Revenue Cycle Management
Revenue Integrity Pressures
Spend Management
Cost Pressures
� Complex payor mix
� Consistently higher growth in hospital costs
� Declining reimbursement growth
versus overall inflation
�� Denied claims claims, partial payments
�� Complexities inherent in procuring the vast
− Approximately 14% of hospital invoices were
number and quantity of supplies
rejected by payors in 2006 − 35,000 SKUs used by a typical hospital
− MedAssets maintains unique 4MM SKU
(1)
� Changing gov’t reimbursement requirements
− Medicare: Increase in number of DRGs from
538 to 745 (with medical-severity tiers)
master item file with 40MM price points
� Historically profitable procedures are
� Rise of consumer-directed healthcare / high-
deductible health plans
becoming less profitable
− “Retail” model vs traditional “wholesale” model
− Ten-fold increase in individuals covered by
consumer-directed accounts since 2004
� Hospitals’ existing information infrastructure are
poorly equipped to adapt
− Medicare Recovery Audit Contracts (RAC)
(1) Source: America’s Health Insurance Plans
(%) Joint Implant C Cost as % of f Reimbursement
MS DRG 470 Total Joint Replacement – Lower Extremities
Source: Orthopedic Network News, January 2006
4

The MedAssets Solution
MedAssets can improve customer operating margins by 1.5% to 5.0%
Strategic Sales and Account Management
� MedAssets successfully
mitigates hospitals’ trend of
declining revenue growth /
increasing supply cost growth
� ASP-based solutions with
minimal or no capital p expense p
� ROI-driven consultative sales
� Improved cash flow measured
in months, not years
� Behavior change measured
through financial targets
Flexible ASP-based Technology
Enterprise p Implementation
p Enterprise p Financial Performance Targets g
5

PProduct/Service d t/S i Overview O i
6

Hospital Revenue Cycle Solutions
The MedAssets RCM solution set can increase net patient revenue by 1-3%
Front End
Scheduling, Pre-Registration,
Patient Admission
Current MedAssets Solutions
Partnered Solution / In Development
Scheduling,
Registration,
Registration
Bill Estimation
& POS Cash
Collection
Insurance
Eligibility &
Verification
Medical
Necessityy
Financial
Counseling
Hospital Revenue Cycle Operations
Clinical Operations
Charging, Coding, Utilization
Charge
Capture
Product / Service Offerings
Coding and
Documentation
Case Mgmt
Utilization Review
Data Management
Chargemaster and Strategic Pricing
Claims
Scrubbing &
Electronic
Billing
Business Intelligence (Revenue / Margin Analytics & Decision Support)
Consulting & Transformational Services / Software Tools & Workflow
Back End
Billing, Follow-up, Collections
Expected
Reimbursement,
Contract
Modeling
Denials
Mgmt,
Payment
Collections
A/R Mgmt,
Cash Posting
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Accuro: Highly Strategic & Complementary
Accuro Significantly Enhances MedAssets’ total RCM Solution Offerings
� Contract Manager ranked #1 and CodeCorrect CDM ranked #2 in charge master by KLAS
� CarePricer (patient bill estimator) is an important product historically not offered by MedAssets
Expanded Customer Base in a Fragmented Market
�� Accuro is a leading RCM player in a highly fragmented industry
� Combined install base now includes 3,300+ hospital customers
� Underpenetrated customer base offers significant cross selling opportunities for MedAssets’
comprehensive RCM and Spend Management solutions
Additional RCM Sales Force Should Accelerate Growth
� Combined national sales team should accelerate penetration of expanded customer base
Substantial Number of Growth and Synergy Opportunities
� Leverage sales force to win new business and cross-sell comprehensive RCM and Spend
Management capabilities to existing customers
� Create EBITDA margin expansion through coordination of product development resources,
segmentation of overlapping products, and elimination of duplicative corporate overhead
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Hospital RCM Solution Sets
Front End
Scheduling, Pre-Registration,
Patient Admission
Patient Access
Management
• Patient Access
Workflow
• Patient Bill
Estimation
• Point-of-Service
Collections
• Medicare Advanced
Beneficiary
Notification (ABN)
• Medicaid Eligibility
and Charity
Screening
Charge Data
Integrity Solutions
Clinical Operations
Charging, Coding, Utilization
Hospital Revenue Cycle Operations
Revenue Capture
Solutions
Claims & Denial
Management
• Chargemaster
• Charge Capture Audit, • Claims Management
Management
Claims Audit &
• Medicare Direct
• Pricing Management RRecovery SServices i
Claims Management
• Billing and Coding • Clinical
• Remittance
Research Tools
Documentation
Management
• Comparative Rate
Improvement
• Denial Management
Modeling
• Coding and
• Reports Management
• Defensible Pricing
Compliance p
• Claims Status
Modeling
• Case Management • Payer Contract
• Supply and Revenue Workflow
Management
Linkage
• Concurrent Denials
Recovery
(underpayment analysis)
Decision Support and Performance Analytics
• Budgeting
• Cost Accounting
• Contract Management
• Clinical Analytics
• Key y Indicators • Performance Management
Back End
Billing, Follow-up, Collections
Collections & A/R
Services
• Accounts Receivable
Services
• A/R Valuation
• Silent PPO Recovery
Services
• Underpayment
Recovery Services
• Denials Management
Services
• Medicare RAC Services
• Collections
Management
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Spend Management Solutions
MedAssets’ Spend Management solutions can save 3-10% of total supply expenses
MedAssets
Spend Management
Commodities Medical Devices Capital Equipment
� 3 � Routinely saves providers 5% to 18%
� Data-enabled group buys
on physician preference items (PPI)
� Proprietary market research and
� Clinical outcomes-driven, fact-based demand forecasting
approach to achie e ph sician
rd largest and fastest growing GPO
� Customized solutions and flexible
contracting model
� Data mgmt & transparency delivers
additional savings of 200-400 bps
approach to achieve physician
ownership and behavior change
� Transparency of provider data
enhances basis for pricing
�
�� Programs: med/surg, pharma, lab,
dietary, purchased services
Portfolio consists of 1,300+ 1 300+ contracts
with 1,000+ manufacturers,
distributors and other vendors
� Local, customized contracting and
solutions enabled by proprietary
technology and data
�
negotiations
Small but important ancillary
component p of GPO offering g
Software Tools and Workflow
Business Intelligence
Consulting Services
10

CrossWalk ®
The leading industry data solution that efficiently integrates a hospital’s supply chain and the revenue cycle
Revenue Cycle y
Management Solutions
CDM Integrrity
Chargemaster
Data
Master
Item File
Spend Management
Solutions
CrossWalk ®
1641$6478%140754673657#3146598795%21558
1641$6478%140754673657#3146598795%21558
$ 2
• Automatically and continuously links providers’ supply cost data to charge data
• Critical to hospitals’ ability to assess the true profitability of their services
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Sales Organization
RCM Sales
Specialists
Sales Team
SVP
of Sales
(Enterprise)
VP of New Customer
Development
(New Customers) pp
VP of Existing Customer
Development
(Upsell and Cross-sell)
SM Sales
Specialists
130+ Person National Sales Force
� Sales cycle ranges from 3-12 3 12 months
� Long-term customer relationship
management
− Allows for sustainable financial
improvement
− Customer development costs efficiently
applied
− Innovation input on key unsolved issues
� Barriers to competitive entry include:
− Broad, demonstrated customer value
− C-suite credibility and access in a single
partner
− National sales infrastructure
− Flexible technology and service platform
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MedAssets’ Unique Value Proposition – Case Studies
Financial Improvement Examples
Revenue cycle management solutions improved net patient
revenue by $8.3mm (vs. prior year), and Spend management
savings totaling $6.5mm, or 3.2%, of annual supply spend of
$200mm.
Spend management savings (vs. prior year) totaling $24mm,
or 5.5%, of annual supply spend of $434mm.
Revenue cycle management solutions improved net patient
revenue by $1.2mm, or 1.1%, over prior year.
– $110mm not-for-profit not for profit hospital in the Southeast
100% Success Rate in Meeting Guarantees
2007
2006
2005
Expanding Penetration &
Value Over Time
Added additional revenue cycle
management tools, spend management
consulting, decision support solutions
and CrossWalk
Added revenue cycle management
solutions – chargemaster
management, charge capture and
pricing tools
2004 Engaged MedAssets for group
purchasing
13

Competitive Landscape
Revenue Cycle Management MedAssets’ Competitive Strengths:
SSpend d Management M t CConsulting lti
� Comprehensive and flexible suite
of solutions
� Long-term and expanding customer
relationships
� Superior proprietary data & technology
− Claims management software ranked
#1 by KLAS
− Payer contract management software
ranked #1 by KLAS
− Decision ssupport pport soft software are ranked #1
by KLAS in 5 of last 8 years
14

Fi Financial i l Overview O i
15

Key Financial Characteristics
� Highly recurring revenue base
� Very high customer retention
� Strong g organic g ggrowth
� Strategic acquisition-based growth
� Minimal capital expenditure or working capital needs
� High free cash flow conversion
�� No direct reimbursement risk
� Highly profitable
16

Annual Net Revenue – excluding Accuro
Net Revenue Contribution by Segment
($MM) � Organic growth driven primarily by
% RCM
% SM
18%
82%
21%
79%
45%
55%
48%
52%
AAs RReported d PPro F Forma* * (unaudited)
( di d)
increased penetration p of existing g
customers and addition of new
customers
� Highly recurring and visible due to
long-term customer contracts
�� Acquisitions primarily focused on
product and service expansion
� Balanced revenue contribution from
RCM and SM
* Gives effect to the acquisitions of MD-X and XactiMed, and the 2006 and 2007 Financings as if they had occurred at the beginning of the period
17

Revenue Predictability
Annual revenue is highly visible…
SSource RRecurring i
ASP-Subscription fees (RCM / SM) �
Administrative fees (SM) �
PPer-transaction t ti fees f (RCM) ��
Contingent fees (RCM / SM) �
Implementation fees (RCM / SM)
CConsulting lti / PProfessional f i l f fees (RCM / SM)
…but but may exhibit some quarter quarter-to-quarter to quarter variability
� GPO vendor reporting of hospital purchases
� Financial improvement acceptance
� Software acceptance (ASP and installed applications)
18

Adjusted EBITDA (1) – excluding Accuro
Adjusted EBITDA
($MM) � Scalable, ASP-based technology
model
% EBITDA Margin
(As Reported)
33.0% 31.7% 34.7% 32.1%
% EBITDA Margin
31.6% 31.6%
(Pro Forma)
As Reported Pro Forma* (unaudited)
� Highly fixed-cost business
� Leverage infrastructure to deliver
new products and services
� Ability to expand Adjusted EBITDA
margins over the long term
(1) Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations, net income (loss), cash flows from
continuing g operating p g activities or any y other measure of pperformance or liquidity q y derived in accordance with GAAP. Investors are strongly gyurged g to review the reconciliation of net income ( (loss) ) to Adjusted j
EBITDA, along with the Company’s consolidated financial statements included in its Form 10-K filed with the SEC on 3/24/08. In addition, because Adjusted EBITDA is not a measure of financial performance
under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure, as presented, may differ from and may not be comparable to similarly titled measures used by other companies.
* Gives effect to the acquisitions of MD-X and XactiMed, and the 2006 and 2007 Financings as if they had occurred at the beginning of the period
19

Accuro – Revenue & EBITDA Growth
Highly-predictable business on a forward 12-month basis
� Nearly 90% of Accuro’s revenue is recurring due to ASP-related subscription fees, which is
very comparable to MDAS’s current trends
Accuro is expected to deliver $37-40 million in revenue in 2H-08, with adjusted EBITDA
margins 200 bps higher than consolidated 2007 Medassets adjusted EBITDA margin
� Assumed a 7.1.08 transaction close; not adjusted for potential deferred revenue discounts
Consolidated adjusted EBITDA margins is expected to increase 75-100 bps in 2009 due to
potential Accuro revenue/operating synergies and reduced risk of operating strategy
(excluding any acquisition-based charges)
� Transaction expected to be break-even break even to slightly dilutive to 2008 adjusted EPS
� Expected to be accretive to 2009 adjusted EPS, including synergies and exclusive of
purchase accounting adjustments
Transaction details: MedAssets paid ~ $207 million in cash and 8.85 million shares of MDAS
common stock, plus a deferred, non-contingent payment of $20 million (in cash or stock) due
on the 1st on the 1 anniversary of transaction closing
20

Capitalization Table
(In $000s) At 3.31.08
Cash and Cash Equivalents $ 127,977
Debt
Revolving Credit Facility
(Capacity: current $110MM; pro forma $125MM)
Notes Payable, Including Current Portion 197,779
Finance Obligation, Including Current Portion 10,108
Total Long-Term Debt, Including Current Portion 207,887
TtlSt Total Stockholders' khld 'E Equity it 231 231,960 960
Total Capitalization 439,847
–
Pro
forma
(estimated)
Debt / LTM Adj. j EBITDA 3.3x 3.5x
Net Debt / LTM Adj. EBITDA 1.3x 3.3x
21

Investment Highlights
� Compelling value proposition for hospitals
�� Best Best-of-breed of breed technology technology-enabled enabled solutions
� $6.5 billion opportunity in underpenetrated market with strong growth potential
� St Strong organic i growth th
� Highly recurring revenue base
�� Very high customer retention
� Strategic acquisition-based growth
�� Minimal capital expenditure or working capital needs
� High free cash flow conversion
OOur Mission Mi i
To partner with hospitals and health systems to enhance their financial
strength st e gt tthrough oug improved p o ed ope operating at g margins a g s aand d cas cash flow o
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