Bariatric Hospital Marketing Campaign

Asclepius Marketing Solutions San Antonio, TX T 210-595-9045

Executive Summary 2

INTRODUCTION 2

BACKGROUND & HISTORY 2

THE GENERAL MARKET 2

Demographic Portfolio 3

Introduction 3

Population Trends 3

INCOME 4

RACE ETHNICITY 4

Insurance Portfolio 5

Introduction 5

Insurance Detail 5

Major PPO Providers 5

HMO / PPO Coverage 5

Media Outlets 6

Television 6

Radio 6

Advertising Rates 6

Coverage Map 7

Radio Schedule 8

TV Schedule 8

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Previous Practice Output 9

Executive Summary

INTRODUCTIONThe strength and legacy of our business model comes from the successful development of real estate and the ongoing study of patient markets. The traditional delivery of quality health care in America has been deficient in finding the right opportunity in the right market at the right time. At Corporate Zombies our commitment is to precisely research and identify market direction and match key physician relationships with quality health care services.

The purpose of this summary is to portray the characteristics of the Killeen 10 mile market and to relate that market data to the appropriate investors. It is our belief that this market represents the opportunity for a substantial relationship between the Corporate Zombies and our partners.

BACKGROUND & HISTORY In June 2005, Corporate Zombies conducted a study of the Killeen 10 mile market with four

objectives in mind:

1. Benchmark what exists and how it is processed

2. Determine the growth characteristics of the market 3.Determine the viability of establishing physician partner relationships and redistributing cases in the market

4. Build a medical facility concept that meets the market’s needs embracing the current and anticipating the future needs

After a study of the market demographics, a series of meetings with key physicians and a search for the appropriate land opportunity, the decision to move forward as a surgery center was made.

THE GENERAL MARKET A zip code definition of the Killeen 10 mile market represents the following demographics as of 2004 unless otherwise indicated:

Current Population: 160,319 Current Average Household income: $48,509 Projected Market Growth Rate: 9.3% Caucasian Population: 45.4% Hispanic Population: 19.1% African American Population: 25.8% All in Household insured: 84.5% (Data for Expanded Area, Insufficient data available for local area) HMO Households: 27.9% (Data for Expanded Area, Insufficient data available for local area) PPO Households: 42.2% (Data for Expanded Area, Insufficient data available for local area)

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Demographic Portfol io

IntroductionThe Demographic Portfolio of a specified target market area is designed to provide a greater understanding of the areas people and the lives that they live. With this information Corporate Zombies can become aware of the possible services needed within the market is gained enabling a more complete market picture.

Population TrendsToday in the Killeen 10 mile area there are a total of 160,319 people with projections to 175,186 people by 2009 yielding a 9.3% increase in the population of the targeted area. Within the area there are a total of 84,597 males and 75,722 females including 37,739 within child bearing age.

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

INCOMEThe Average household income of this area is $48,509 which is below the national average at $63,301. 3,729 of the 52,472 households in the area report incomes over $100,000.

RACE ETHNICITY The market area is relatively diverse in its population ethnicities. The dominating race at 45.4% is Caucasian and the next largest groups is African Americans at 25.8%. Hispanics make up 19.1% of the population.

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Insurance Portfol io

IntroductionProfiles of local managed care statistics offer specific market insurance capabilities. Included in the markets insurance profile are Medicare and Medicaid numbers to provide a complete understanding of all insurance avenues within the targeted market area.

Insurance DetailThe Killeen 10 mile area boasts strong insurance membership with 90.3% of households having at least 1 person insured and 84.5% of households with all persons insured. Only 6.8% of households are not insured in some form.

Major PPO ProvidersBeech Street Corp Firstcare Preferred PPO United Health CareBlue Cross Blue Shield of Texas

Great West Healthcare Tricare

Brazos Valley Health Network

Aetna Texas True Choice/ Ethix Southwest

HMO / PPO CoverageThe total HMO penetration of Killeen 10 mile is 27.9% while the PPO rate is at 42.2% in a 79.9% saturated managed care market. Major providers include Blue Cross Blue Shield, Humana, United Healthcare, United Health, Great West, PHCS, and Unicare.

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Media Outlets

TelevisionABC News 25 is the largest TV station in the tri-city area with a local office located in Killeen, TX.

RadioCummulus Media KSSM FM ranks #2 on Arbitron.

Advertising Rates

Medium Description CostABC Local News M-F 18 Spots $3,600 MonthKSSM Radio M-F Mornings 63 Spots $2,616 MonthTotal Combined TV, Radio $6,216 Month

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Coverage MapKilleen, Temple, Waco, Bryan

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Radio Schedule

TV Schedule

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

Previous Practice Output

Report Summary 2007 2008 2009 2010

Number of Referrals for the Year 2636 2825 2473 3051

Referrals Scheduled 792 1125 779 1198

Referrals Scheduled Rates 30% 39% 31% 39%

Referrals No Show Re Schedules -613 671 1042 1503

Referrals No Show Re Schedules Rates -23% 23% 42% 49%

Total Scheduled 179 1796 1821 2701

Total Scheduled Rate 6.7% 64% 73% 88%

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign

JOIN US

Allen Buck - The Corporate ZombieFacebook.com/AsclepiusSolutions

AsclepiusMarketing.com

E-MAILallen@asclepiusmarketing.comPHONE210-595-9045Office300 Convent St STE 1330San Antonio TX 78205USA

Asclepius Marketing Solutions

Bariatric Hospital Marketing Campaign