Healthcare Market Monitor

Mergers & Acquisitions Capital Raise Strategic Advisory

Q2 2021 CTIVITY Q2 2021 M&A A Mergers & Acquisitions Capital Raise Strategic Advisory

Highlights Total M&A Volume: Q2 2020 vs. Q2 2021

▪ In Q2 2021, total Healthcare M&A volume was up 94.5% compared to Q2 1,200 nd 2020. YTD volume through the 2 quarter isalso up 80.2%. 1,020 M &A Volume 1,000 ▪ Large sales in the senior / assisted living, hospitals and eHealth segments helped drive the aggregate deal value to increase 93.9% in Q2 2021 over Q1 800 2021, reaching$110B. 566 Notable ▪ Deal volume throughout the sector is being driven by capital availability, 600 494 Transactions regulatory shifts, evolving competitive dynamics, promising technologies and commitments to patient-centricity. Additionally, the Biden 400 administration has been pushing for government-backed health coverage 254 further attractinginvestors. 200 Public Indexes

- Q2 2020 Q2 2021 YTD Q2 2020 YTD Q2 2020 M&A Volume by Segment: Q2 2020 vs. Q2 2021 HCA Overview

120 Q2 2020 107 100 Q2 2021 100 88 Services 80 70 60 55 60 50

40 35 32 E xperience 26 23 21 15 20 11 10 11 11 13 5 5 0 Behavioral eHealth Home Health / Hospitals Labs / Managed Care Other Services Physician Post-acute Senior / Assisted C ontact Us Health Care Hospice Diagnostics Medical Groups Care/Rehab Living

Source: CapitalIQ, Healthcare M&A News 2 ELECT OTABLE CTIVITY S , N M&A A Mergers & Acquisitions Capital Raise Strategic Advisory

$ in millions Announced Transaction Date Category Target Acquirer/Investor Short Description Value Provides services including radiology, ultrasounds, primary care, Jul-21 Labs & Diagnostics DNF Medical Centers Cardona Medical Center, Inc. $109.4 laboratory tests and more M &A Volume Substantially all of the Assets and certain Jul-21 Other Services Cano Health, LLC Operates medical centers that provide primary care services $300.0 Liabilities of Doctors Medical Center, LLC

Offers home hospitalization programs to manage episodic risk Jun-21 Home Health Care Contessa Health, Inc. Amedisys, Inc. $250.0 initiatives Notable Transactions Provides outsourced healthcare services to hospitals and healthcare Jun-21 Labs & Diagnostics Alliance Healthcare Services, Inc. Akumin Corp. $820.0 providers

Jun-21 Hospitals Five General Acute Hospitals in South Florida Medical Properties Trust, Inc. Operates five acute care hospitals in Florida $900.0 Public Indexes Offers a patient engagement platform that prompts proactive Jun-21 ehealth Twistle, Inc. Health Catalyst, Inc. $169.8 conversations with patients

Jun-21 Hospitals 5 hospitals of Tenet Healthcare Corporation Steward Health Care System LLC Operates five hospitals $1,100.0 HCA Overview Develops and operates hospitals that treat mental illness and Jun-21 Hospitals Springstone, Inc. Medical Properties Trust, Inc. $950.0 substance abuse

Jun-21 ehealth CIOX Health Datavant, Inc. Facilitates and manages the movement of health information $7,000.0

Services Harrison Street Real Estate Operates 24 senior housing facilities which focus on assisted living and Jun-21 Senior / Assisted Living 24 Class A Senior Housing Properties Portfolio $1,200.0 Capital, LLC memory care

Jun-21 Other Services 14-property medical office portfolio Healthpeak Properties, Inc. Comprises of 14 medical offices $371.0

E xperience Provides technology solutions that help healthcare providers reduce Jun-21 ehealth Sentry Data Systems, Inc. Craneware plc $400.0 care costs, manage compliance and improve outcomes

Jun-21 Labs & Diagnostics Intrinsic Imaging LLC WCG Clinical, Inc. Operates a medical imaging core lab $92.1

C ontact Us May-21 Hospitals Redmond Park Hospital, LLC AdventHealth Provides inpatient and outpatient programs in Georgia and Alabama $635.0

Source: CapitalIQ, Healthcare M&A News 3 ELECT OTABLE CTIVITY CONT S , N M&A A ( .) Mergers & Acquisitions Capital Raise Strategic Advisory

$ in millions Announced Transaction Date Category Target Acquirer/Investor Short Description Value

May-21 ehealth OODA Health, Inc. Cedar Cares, Inc. Provides payment administration to the healthcare sector $425.0 M &A Volume Computer Programs and May-21 ehealth TruCode, LLC Designs and develops medical coding software $77.5 Systems, Inc.

May-21 Senior / Assisted Living All Assets of Henry Ford Village, Inc. Sage Healthcare Partners Operates a senior living community $76.3 Notable Eastside Medical Center/Cartersville Medical Transactions May-21 Other Services Center/Coliseum Health System/Coliseum Piedmont Healthcare, Inc. Operates acute care medical centers $950.0 Center Develops an online patient revenue platform for patients to manage May-21 ehealth VisitPay LLC R1 RCM Inc. $298.0 their own account Public Indexes

Apr-21 Senior / Assisted Living Sonata Senior Living Portfolio Fortress Investment Group LLC Comprises of senior living properties $64.0

Offers long-term acute care hospitals and inpatient rehabilitation Apr-21 Hospitals Kindred Healthcare, LLC Humana Inc. $5,700.0 facilities HCA Overview Apr-21 Labs & Diagnostics Round Hill Health Partners LLC Maitri Health Technologies Corp. Offers labs and testing solutions $71.5

Apr-21 ehealth PeriGen, Inc. Halma plc Designs and develops perinatal and fetal monitoring software solutions $58.0

Services Apr-21 Hospitals Lake Health Beachwood Medical Center Montecito Medical Operates an acute care hospital $58.3

Operates as a telemedicine provider that connects doctors with Apr-21 ehealth PlushCare, Inc. Accolade, Inc. $435.0 patients Texas Medicaid and Medicare-Medicaid Plan E xperience Comprises Medicaid and Medicare programs and insurance and Apr-21 Managed Care (MMP) Contracts and Certain Operating Assets Molina Healthcare, Inc. $60.0 related products of Cigna

Apr-21 Labs & Diagnostics Seven plasma centers in the U.S. Grifols, S.A. Operates seven plasma donation centers $55.2

C ontact Us Operates as a senior home care company that connects professional Apr-21 Home Health Care SH Franchising, LLC Advocate Aurora Enterprises $187.0 caregivers with seniors who wish to live at home

Source: CapitalIQ, Healthcare M&A News 4 EAL POTLIGHT IFE OINT EALTH TO CQUIRE INDRED EALTHCARE D S : L P H A K H Mergers & Acquisitions Capital Raise Strategic Advisory

▪ Announced June 2021 ▪ LifePoint Health and Kindred Healthcare announced that they have entered into a definitive merger agreement under which Transaction LifePoint willacquire KindredHealthcare. M &A Volume Overview ▪ LifePoint Health provides healthcareservices in growingregions, rural communities andsmalltowns. ▪ Kindred Healthcare is a post-acute healthcare services company that operates long-term acute-care hospitals and provides services across the UnitedStates.

Notable Transactions ▪ The combination of LifePoint Health and Kindred Healthcare creates a leading community healthcare platform and benefits from a full array of complementary services Transaction supporting patients across the healthcare continuum; standardized care at the bedside that advances clinical, quality and compliance excellence; opportunities to develop and Announced Considerations Public Indexes expand critical behavioral health services across the country; and investments in June 2021 services and technology for patients in newand existingmarkets. ▪ LifePoint expects that the transaction between two companies offering complementary services will improve healthcare outcomes and access without increasing costs for patients. HCA Overview ▪ LifePoint isset to invest $1.5 billionover threeyears across the combinedorganization. ▪ The purchase adds 62 long-term acute care facilities, 25 inpatient rehabilitation Data Points facilities, more than 100 acute rehabilitation facilities and 2 behavioral facilities to LifePoint. to be acquired by Services ▪ The resulting organizationwill staff roughly77,000 employees across the United States.

▪ “Adding Kindred Healthcare to LifePoint is one of the most significant demonstrations, in our company’s history, of LifePoint’s commitment to our deeply rooted mission of E xperience Making Communities Healthier. Kindred’s focus on healing and hope, provided through Other Details its long-term acute care hospitals, rehabilitation centers and most recently its behavioral health services – an important and growing need across the country – is highly complementary to the current LifePoint network”, said David Dill, president and chief C ontact Us executive officer of LifePoint.

Source: Company press releases, S&P CapitalIQ, Reuters 5 EAL POTLIGHT UMANA TO CQUIRE INDRED AT OME D S : H A K H Mergers & Acquisitions Capital Raise Strategic Advisory

▪ Announced April2021 ▪ Humana (NYSE:HUM) and Kindred at Home announced that they have entered into a definitive merger agreement under which Transaction Humana will acquire the remainingstake in Kindred atHome. M &A Volume Overview ▪ Humana is a for-profit health insurance company based in Kentuckyand rated as the third largest health insurance company in the nation. ▪ Kindred at Home is one of the nation’s largest providers of home care services. Over the last 50 years their care has grown to 775 locations across 40 states. Notable Transactions ▪ Humana isdeepening its investment in becoming a care provider as well as a payer, with a particular focuson the quickly growingadult population in the UnitedStates. Transaction ▪ Senior living providers may interpret the Kindred at Home transaction as further proof that large insures are looking to own more of the care continuum, in order to better Announced Considerations Public Indexes control costs and outcomesfor their largeMedicare Advantagerolls. April 2021

▪ The transaction values Kindred at Home at $8.1 billion; Humana holds an existing HCA Overview equity value of $2.4 billion – a 40% stake througha deal executed in 2017. ▪ The agreement calls for the acquisition of the remaining interests in Kindred at Home Data Points for $5.7 billionto take full ownership. to be acquired by Services

▪ “Humana embarked on a journey with Kindred at Home in 2018 with the belief that a key component of the next generation of its integrated care delivery model was the ability to E xperience provide care to consumers, including Humana members, in their home at scale, meeting Other Details them where they want to be, in a preferred lower-cost setting, while also recognizing that the traditional volume-based, fee-for-service model limited innovation in home health”, said Susan Diamond, Humana’s interim CFO. C ontact Us

Source: Company press releases, S&P CapitalIQ, Reuters 6 UBLIC OMPANY ALUATION IMELINE P C V T Mergers & Acquisitions Capital Raise Strategic Advisory

100.0x eHealth; 2021 YTD Average: 74.2x Home Health / Hospice; 2021 YTD Average: 23.9x Senior / Assisted Living; 2021 YTD Average: 11.6x 90.0x M &A Volume Post-acute Care / Rehab; 2021 YTD Average: 9.7x Hospitals; 2021 YTD Average: 8.4x 80.0x Medical Product Distributors; 2021 YTD Average: 8.2x Labs / Diagnostics; 2021 YTD Average: 7.3x Notable Transactions 70.0x

60.0x Public Indexes

50.0x

EV / TTM EBITDA / TTM EV HCA Overview 40.0x

30.0x Services

20.0x

E xperience 10.0x

0.0x

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Jul-18 Jul-19 Jul-20

Jan-21 Jan-18 Oct-18 Jan-19 Oct-19 Jan-20 Oct-20

Feb-18 Feb-19 Feb-20 Feb-21

Jun-20 Jun-18 Jun-19 Jun-21

Apr-18 Apr-19 Apr-20 Apr-21

Mar-19 Mar-18 Nov-18 Nov-19 Mar-20 Nov-20 Mar-21

Sep-18 Sep-19 Sep-20

Dec-18 Dec-19 Dec-20

May-18 May-19 May-20 May-21

Aug-18 Aug-19 Aug-20

Source: CapitalIQ, company filings. 7 UBLIC OMPANY ALUATIONS P C V Mergers & Acquisitions Capital Raise Strategic Advisory

$ in millions, except per share data 6/30/21 TTM Data EV Multiple Share Market Enterprise EBITDA TTM TTM NTM NTM Category Company Name Price Cap Value Sales Gross Profit Gross Margin EBITDA Margin Sales EBITDA Sales EBITDA

Veeva Systems Inc. $310.95 $47,550 $45,460 $1,562 $1,131 72.5% $447 28.6% NM NM NM NM M &A Volume Teladoc Health, Inc. 166.29 25,696 26,403 1,367 902 66.0% (369) NA NM NA NM NM

Cerner Corporation 78.16 23,551 23,944 5,482 4,573 83.4% 1,300 23.7% 4.37x 18.4x 4.05x 12.4x

Change Healthcare Inc. 23.04 7,146 11,923 3,090 1,559 50.4% 574 18.6% 3.86x 20.8x 3.47x 11.2x

Omnicell, Inc. 151.45 6,541 6,523 914 429 46.9% 99 10.9% 7.13x NM 5.73x 25.7x Notable Transactions Inovalon Holdings, Inc. 34.08 5,313 6,202 691 519 75.2% 204 29.6% 8.98x 30.3x 7.88x 22.0x

Allscripts Healthcare Solutions, Inc. 18.51 2,613 2,379 1,490 704 47.2% 35 2.4% 1.60x NM 1.57x 9.3x eHealth Health Catalyst, Inc. 55.51 2,471 2,402 200 98 49.2% (60) NA NM NA 9.90x NA

Evolent Health, Inc. 21.12 1,804 1,864 1,016 245 24.1% 8 0.7% 1.83x NM 2.08x 40.6x Public Indexes NextGen Healthcare, Inc. 16.59 1,112 1,070 557 318 57.1% 32 5.7% 1.92x 33.4x 1.85x 9.8x

CareCloud, Inc. 8.42 121 110 113 44 38.7% 5 4.6% 0.97x 21.2x 0.79x 4.3x Median $5,313 $6,202 $1,016 $519 50.4% $35 10.9% 2.89x 21.2x 3.47x 11.8x Average $11,265 $11,662 $1,498 $957 55.5% $207 13.9% 3.83x 24.8x 4.15x 16.9x HCA Overview Amedisys, Inc. $244.93 $7,978 $8,237 $2,117 $954 45.1% $270 12.8% 3.89x 30.5x 3.45x 23.2x

Chemed Corporation 474.50 7,568 7,495 2,091 724 34.6% 367 17.6% 3.58x 20.4x 3.54x 17.4x

LHC Group, Inc. 200.26 6,341 6,258 2,075 836 40.3% 219 10.5% 3.02x 28.6x 2.71x 20.8x

Hospice Addus HomeCare Corporation 87.24 1,374 1,488 780 233 29.9% 66 8.5% 1.91x 22.4x 1.66x 15.6x Services

Median $6,955 $6,876 $2,083 $780 37.5% $244 11.7% 3.30x 25.5x 3.08x 19.1x Home Health / Health Home Average $5,815 $5,870 $1,766 $687 37.5% $231 12.3% 3.10x 25.5x 2.84x 19.2x

HCA Healthcare, Inc. $206.74 $68,360 $102,295 $52,649 $20,062 38.1% $10,761 20.4% 1.94x 9.5x 1.84x 9.3x

Universal Health Services, Inc. 146.43 12,479 15,749 11,742 4,747 40.4% 1,936 16.5% 1.34x 8.1x 1.27x 8.5x E xperience Tenet Healthcare Corporation 66.99 7,154 23,133 17,901 6,441 36.0% 2,595 14.5% 1.29x 8.9x 1.17x 7.4x

Community Health Systems, Inc. 15.44 1,962 13,854 11,777 4,515 38.3% 1,111 9.4% 1.18x 12.5x 1.14x 8.1x Hospitals Median $9,817 $19,441 $14,839 $5,594 38.2% $2,265 15.5% 1.32x 9.2x 1.22x 8.3x Average $22,489 $38,758 $23,517 $8,941 38.2% $4,101 15.2% 1.44x 9.8x 1.35x 8.3x

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Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts. Source: CapitalIQ, company filings. 8 UBLIC OMPANY ALUATIONS P C V Mergers & Acquisitions Capital Raise Strategic Advisory

Laboratory Corporation of America Holdings $275.85 $26,934 $31,425 $15,316 $5,880 38.4% $4,437 29.0% 2.05x 7.1x 2.28x 10.9x M &A Volume Quest Diagnostics Incorporated 131.97 17,240 20,795 10,335 4,262 41.2% 2,965 28.7% 2.01x 7.0x 2.36x 10.5x

Tivity Health, Inc. 26.31 1,295 1,696 386 194 50.1% 153 39.7% 4.39x 11.1x 3.37x 10.9x Labs Labs / Median $17,240 $20,795 $10,335 $4,262 41.2% $2,965 29.0% 2.05x 7.1x 2.36x 10.9x Diagnostics Average $15,157 $17,972 $8,679 $3,445 43.3% $2,519 32.5% 2.82x 8.4x 2.67x 10.8x Notable McKesson Corporation $191.24 $29,578 $34,318 $238,228 $11,967 5.0% $4,005 1.7% 0.14x 8.6x 0.14x 7.5x Transactions

AmerisourceBergen Corporation 114.49 23,746 24,362 196,282 5,558 2.8% 2,754 1.4% 0.12x 8.8x 0.11x 7.7x

Cardinal Health, Inc. 57.09 16,565 19,801 156,570 6,893 4.4% 2,713 1.7% 0.13x 7.3x 0.12x 7.0x

Henry Schein, Inc. 74.19 10,438 12,387 10,615 2,959 27.9% 786 7.4% 1.17x 15.8x 1.06x 12.5x Public Indexes

Distributors Owens & Minor, Inc. 42.33 3,181 4,240 8,684 1,455 16.8% 458 5.3% 0.49x 9.3x 0.43x 10.4x

Medical Product Product Medical Median $16,565 $19,801 $156,570 $5,558 5.0% $2,713 1.7% 0.14x 8.8x 0.14x 7.7x Average $16,702 $19,022 $122,076 $5,766 11.4% $2,143 3.5% 0.41x 9.9x 0.37x 9.0x

Select Medical Holdings Corporation $42.26 $5,698 $10,121 $5,664 $1,197 21.1% $721 12.7% 1.79x 14.0x 1.72x 11.8x

Healius Limited 3.47 2,078 3,132 1,338 487 36.4% 167 12.5% 2.34x 18.7x 2.23x 8.8x HCA Overview

U.S. Physical Therapy, Inc. 115.87 1,494 1,727 418 105 25.1% 74 17.8% 4.13x 23.3x 3.56x 25.0x

Median $2,078 $3,132 $1,338 $487 25.1% $167 12.7% 2.34x 18.7x 2.23x 11.8x Post-acute Post-acute

Care / Care Rehab Average $3,090 $4,994 $2,473 $596 27.5% $321 14.3% 2.75x 18.7x 2.50x 15.2x

The Ensign Group, Inc. $86.67 $4,714 $5,681 $2,440 $429 17.6% $283 11.6% 2.33x 20.0x 2.10x 16.4x Services Genuit Group plc 8.45 2,088 2,126 544 213 39.2% 80 14.7% 3.91x 26.6x 2.88x 13.8x

Brookdale Senior Living Inc. 7.90 1,463 6,413 2,805 657 23.4% 245 8.7% 2.29x 26.1x 2.11x 29.7x

Living Capital Senior Living Corporation 49.50 102 949 300 90 30.1% 37 12.5% 3.17x 25.4x NA NA Median $1,775 $3,904 $1,492 $321 26.8% $163 12.0% 2.75x 25.8x 2.11x 16.4x E xperience

Senior / Assisted Senior Average $2,092 $3,792 $1,522 $347 27.6% $161 11.9% 2.92x 24.6x 2.36x 20.0x

Overall Healthcare Services Median $6,020 $7,009 $2,104 $869 38.4% $277 12.5% 2.01x 18.6x 2.10x 11.0x Average $11,287 $14,293 $22,575 $2,688 38.0% $1,161 13.8% 2.56x 17.7x 2.53x 14.3x

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Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts. Source: CapitalIQ, company filings. 9 HAT E RE BOUT W W ’ A Mergers & Acquisitions Capital Raise Strategic Advisory

E xperienced Investment A 20-year firm with professionals with 120 years combined experience in middle market Banking Professionals mergers & acquisitions and corporate finance advisory services M &A Volume

Real-time pulse of sector activity, corporate, family office & private equity participants and Notable In dustry Expertise Transactions enterprise valuation metrics

Public Indexes Meticulously craft a transaction blueprint with steadfast commitment to achieve our clients’ Results Driven g oals

HCA Overview Capital is a commodity … the investor behind the capital is targeted based on our clients’ Th e Right Capital ob jectives

Services

We provide frank advice, backed with analysis and perspective, to map out and execute a Ob jective Advice p rocess to reach our clients’ transaction objectives

E xperience

From engagement inception through post-closing transaction functions, our senior bankers Senior Banker Immersion are front and center C ontact Us

10 ERVICES NDUSTRIES S & I Mergers & Acquisitions Capital Raise Strategic Advisory

With more than 250 completed transactions, HCA’s investment bankers maintain P a p er, H e a lt h & P l a st ic & M &A Volume relationships with key decision-makers W e lln ess A u tomotive P a c kag ing among strategic buyers and investors and comprehensive coverage of relevant private A p p arel & Industrial Tech nolog y F o ot w ear Notable equity groups and family offices Transactions

F o od & Consumer B e v erag e Industrial Merger and Acquisition Advisory Public Indexes B e au t y & C h emicals P e r s onal & Equity and Debt Capital Placement C a r e Ingredients

V i t amin s, Logistics & O u td oor & Minerals & S u p p ly HCA Overview Strategic Alternatives Assessment R e c reation N u t r ition C h ain

C o n tract O T C Exclusive Sales and Divestitures P a c kag ing P r o d ucts Services & M f g . Strategic Planning Healthcare

E xperience Management Buy-outs D e n tal H o s p it al Products & S e r v ices S e r v ices Recapitalizations P h y sician C ontact Us & Clinical S e r v ices 11 ROVEN RACK ECORD OF UCCESSFUL EALTHCARE RANSACTIONS P T R S H T Mergers & Acquisitions Capital Raise Strategic Advisory

M &A Volume

Notable Transactions

Public Indexes

* * * * HCA Overview

Services

E xperience * * * * * * * *

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*Represents a transaction executed by principals of Hexagon Capital Alliance at a prior firm

12 CONTACT US Mergers & Acquisitions Capital Raise Strategic Advisory

M &A Volume

Notable Transactions

Mergers & Acquisitions Capital Raise Strategic Advisory Public Indexes

P a ul Kacik Managing Director Head of Healthcare Investment Banking HCA Overview (949)-232-4446 [email protected]

THANK YOU Services

The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without E xperience limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought.

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