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The Advisory Board Company THE ADVISORY BOARD COMPANY ANNUAL REPORT THE ADVISORY BOARD COMPANY 2445 M Street, NW • Washington, DC 20037 Telephone: 202.266.5600 • Fax: 202.266.5700 www.advisoryboardcompany.com Washington, DC • Portland, Oregon • Austin, Texas • Nashville, Tennessee Vernon Hills, Illinois • San Francisco, California • Chennai, India BOARD OF DIRECTORS Frank J. Williams Peter J. Grua † ‡ Robert W. Musslewhite Leon D. Shapiro †‡ Executive Chairman Director Director Director The Advisory Board Company Partner, Chief Executive Offi cer, Senior Vice President, HLM Venture Partners The Advisory Board Company Warner Music Group Sanju K. Bansal ‡ Kelt Kindick* † ‡ Mark R. Neaman* ‡ LeAnne M. Zumwalt* ‡ Director Lead Director Director Director Vice Chairman, Chief Financial Offi cer, President and Chief Executive Vice President, Executive Vice President and Bain & Company Offi cer, North Shore University DaVita, Inc. Chief Operating Offi cer, Health System MicroStrategy Incorporated * Member of the Audit Committee of the Board of Directors † Member of the Compensation Committee of the Board of Directors ‡ Member of the Governance Committee of the Board of Directors EXECUTIVE OFFICERS AND SENIOR MANAGEMENT Robert W. Musslewhite Frank J. Williams David L. Felsenthal Chief Executive Offi cer Executive Chairman President Seth B. Blackley Martin D. Coulter John A. Deane Executive Director Executive Director Chief Executive Offi cer, Southwind Christopher B. Denby Evan R. Farber Scott M. Fassbach Executive Director General Counsel and Chief Research Offi cer Corporate Secretary James L. Field Michael T. Kirshbaum Matthew S. Klinger Executive Director Chief Financial Offi cer Vice President, Finance Nicole D. Latimer Cormac F. Miller Charles W. Roades Executive Director Executive Director Chief Research Offi cer, Health Care Scott A. Schirmeier Richard A. Schwartz Franziska R. Shaw Executive Vice President Executive Vice President Executive Director Adam R. Spiegel J. Michelle Stevens Mary D. Van Hoose Executive Director Executive Director Chief Talent Offi cer THE ADVISORY BOARD COMPANY THE ADVISORY BOARD IN BRIEF The Advisory Board Company is the leading service provider to the health care and education industries, hardwiring performance improvement through best practice research and analysis, business intelligence and software tools, installation support, and management and advisory services. Our services are provided through discrete membership programs to nearly 3,000 hospitals, health systems, pharmaceutical and biotech companies, health care insurers, medical device companies, colleges, universities, and other educational institutions. Our business model is predicated on the view that there are economies of intellect in the sectors we serve; that is, there are compelling advantages to large numbers of health systems, clinicians, and corporations (as well as colleges, universities, and educators) collaborating to identify specifi c opportunities that have potential to shape their industries. Through our membership programs, we illuminate these opportunities and provide the services and support to hardwire the critical performance improvement required for meaningful change. By providing a standardized set of services, we are able to spread our largely fi xed program cost structure across our membership base of participating organizations. This economic model permits members to learn about industry best practices and access hosted software solutions at a fraction of the cost of customized analysis, consulting, services, or software development provided by other business services fi rms. For example, for a fi xed fee, members of each of our programs typically have access to an integrated set of services designed to provide valuable, timely information and tools derived from lessons learned from the industry’s most progressive participants. These services can include, among others: • Best practice research studies • Business intelligence and software tools • Executive education seminars • Customized research briefs • Program website with content databases, daily news publications, and on-demand webconferences We strive to provide our members with an unparalleled level of service. Our hope is that our members recognize our dedication to intelligent support and, therefore, maintain a long-term commitment to working with us. 1 REPRESENTATIVE ADVISORY BOARD MEMBERS Academic Medical Centers Grady Health System Cedars-Sinai Medical Center Harborview Medical Center Clarian Health Partners, Inc. Beth Israel Medical Center Harper University Hospital Continuum Health Partners Brigham and Women’s Hospital Harris County Hospital District Fairview Health Services Glendale Adventist Medical Center Johns Hopkins Bayview Medical Center HCA-The Healthcare Company Hospital of the University of Pennsylvania Lenox Hill Hospital HealthEast Care System Indiana University Medical Center Long Beach Memorial Medical Center Henry Ford Health System Johns Hopkins Health System Overlook Hospital IASIS Healthcare Corporation Loyola University Health Systems Parkland Health and Hospital System Intermountain Health Care, Inc. Massachusetts General Hospital Queens Hospital Center Legacy Health System Montefi ore Medical Center Rhode Island Hospital New York City Health & Hospitals Corporation MUSC Medical Center Saint Mary’s Hospital OSF Healthcare System New York University Langone Medical Center Scott and White Memorial Hospital Partners HealthCare Northwestern Memorial Hospital Sinai Hospital of Baltimore Providence Services Ohio State University Medical Center St. Luke’s Episcopal Hospital Scripps Health Ronald Reagan UCLA Medical Center St. Luke’s-Roosevelt Hospital Center Sharp HealthCare Stanford Hospital and Clinics St. Vincent Healthcare SSM Health Care Corporate Offi ce UCSF Medical Center University Health Systems of Eastern Carolina Sutter Health UMass Memorial Healthcare Swedish Health Services University of Arkansas for Medical Sciences Medical Center Major Health Systems Tenet Healthcare Corporation University of Colorado Hospital Texas Health Resources University of Michigan Health System Adventist Health Trinity Health University of Virginia Health System Advocate Health Care UPMC University of Wisconsin Hospital and Clinics Ardent Health Services Veterans Integrated Health Networks Wake Forest University Baptist Medical Center Atlantic Health Yale-New Haven Hospital Aurora Health Care Baptist Health System Clinics and Specialty Hospitals Teaching Hospitals Baylor Health Care System Baptist Memorial Hospital for Women BJC Healthcare Children’s Healthcare of Atlanta Albert Einstein Medical Center Bon Secours Health System, Inc. Childrens Hospital of Los Angeles Beaumont Hospitals Carilion Clinic Children’s Medical Center of Dallas Detroit Medical Center Catholic Health Initiatives - Corporate Offi ce Children’s National Medical Center Detroit Receiving Hospital & University Health Center Catholic Healthcare Partners Cleveland Clinic Foundation Fletcher Allen Health Care Catholic Healthcare West Dana-Farber Cancer Institute 2 Gillette Children’s Specialty Healthcare Northside Hospital McKesson Corporation Hospital for Special Surgery Norwalk Hospital Medtronic, Inc. Kaiser Foundation Hospitals Corporate Offi ces Resurrection Medical Center Microsoft Health Solutions Group Karmanos Cancer Institute Rural Wisconsin Health Cooperative Novartis Pharmaceuticals Corporation Mayo Foundation Saint Joseph Regional Medical Center Ortho-McNeil Pharmaceutical Memorial Sloan-Kettering Cancer Center Sibley Memorial Hospital Philips Healthcare Methodist Specialty and Transplant Hospital St. Francis Hospital Sanofi -Aventis Pharmaceuticals Moffi tt Cancer Center St. Luke’s Hospital Sheridan Healthcare, Inc. Nemours St. Luke’s Regional Medical Center Siemens Medical Solutions USA Ochsner Clinic Foundation St. Mary’s Regional Medical Center SmithGroup RML Specialty Hospital The Reading Hospital & Medical Center Stryker Orthopaedics Mahwah Campus Roswell Park Cancer Institute Tucson Medical Center Varian Medical Systems University of Texas MD Anderson Cancer Center West Georgia Health System University Specialty Hospital Universities Health Care Corporations Baylor University Community Hospitals Abbott Vascular Carnegie Mellon University Battle Creek Health System Aetna Life Insurance Company Duke University Cape Cod Hospital Amgen USA Georgetown University Cape Fear Valley Health System Aptium Oncology Indiana University Charleston Area Medical Center Boston Scientifi c Corporation Kent State University Danbury Hospital Bristol-Myers Squibb New York University DCH Regional Medical Center California HealthCare Foundation Oregon State University East Jefferson General Hospital Cardinal Health Inc. Syracuse University Eastern Maine Medical Center Covidien Ltd. University of California, Berkeley Gratiot Medical Center Edwards Lifesciences Corporation University of Nebraska Heartland Regional Medical Center Eli Lilly & Company University of Utah Huntington Memorial Hospital GE Healthcare Integrated IT Solutions Group Vanderbilt University Lancaster General Hospital Hammes Company Wake Forest University Lutheran Hospital Hewlett-Packard Company Washington University Maimonides Medical Center Hill-Rom William Marsh Rice University Maine Medical Center HOK Group, Inc. Medical Center of Central Georgia Kaiser Permanente Mississippi Baptist Health System Kimberly-Clark Corporation 3 Annual Revenues Contract Value per Member for Fiscal Years Ending March 31 as of March 31 (In Millions) (In Thousands) $239.3
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