1. 35th Annual J.P. Morgan Healthcare Conference
San Francisco, California
January 9, 2017
Jim Skogsbergh
President and Chief Executive Officer
Lee B. Sacks, M.D.
Executive Vice President and Chief Medical Officer
Dominic J. Nakis Chief Financial Officer and Treasurer

2. The following material and presentation contains information which is forward looking within the meaning of federal securities law. These forward-looking statements are based on the current plans and expectations of Advocate Health Care Network (“Advocate”) that, although believed to be reasonable, are subject to a number of known and unknown uncertainties and risks inherent in the operation of health care facilities, many of which are beyond Advocate’s control, that could significantly affect current plans and expectations and Advocate’s future financial position and results of operations. These forward-looking statements speak only as of the date made. Investors are cautioned not to unduly rely on such forward-looking statements. This presentation should be reviewed in conjunction with Advocate’s December 31, 2015 and September 30, 2016 continuing disclosure reports.

3. Overview & Strategic Focus
Jim Skogsbergh
President and Chief Executive Officer

5. Advocate Health Care $6.4 billion of revenue
1.6 million unique patients
865,000 value based lives
35,000 associates
Physicians/Ambulatory
1,400 employed APCs
Over 6,000 physicians
Over 450 sites of care
Hospitals (11)
4 teaching
1 children's
1 critical access
5 level 1 trauma centers
2 LTACH
Post-acute
Home health, hospice, SNF and palliative care

6. Advocate Well Positioned
Top decile safety and health outcomes
Strong brand
Clinically integrated network with 5,000 physicians
High performance network products
Population health leader
Robust ambulatory & retail clinics
Financial strength

8. Serious Safety Events Down 37%
Goal – 0 by 2020
AHRQ survey 81st percentile. Improvements over 5 years signal change in culture

9. Top Decile Complications/Mortality
Consistent with creating a high reliability culture- risk adjusted complications continue to improve and are in top decile
Risk Adjusted Mortality hovers at top decile
For adult ICU patients- actual mortality is .44 of the APACHE predicted resulting in over 1000 lives saved in 2016

10. Focus on Service Excellence
Top decile associate engagement
Patient NPS 79
Physician engagement 71st percentile
Service Initiatives
Monthly Loyalty Dashboards to Monitor Key Drivers
New Patient Engagement Strategic Framework
New Leader Service Onboarding

11. Growth in patients, revenue, channels
Unique patients up 4%
Revenue up 5%
Advocate Medical Group visits up 9%
New channel of distribution
#1 in brand awareness
Increase in # of physicians and APNs

12. Significant Growth in Attributed Lives
Compounded Growth Rate = 16%
Up 321K
Have focused on growing lives in benefit plans that keep over 80% of care inside of Advocate, i.e. HMOs, Advocate Only networks, and Medicare Advantage
Since CAGR for risk lives has been 16%

13. Changing Business Model
Lee B. Sacks, M.D.
Executive Vice President and Chief Medical Officer

14. Changing Business Model
Maximize unit reimbursement.
For given unit reimbursement, maximize quantity.
Take financial risk for managing the health of a population, lowering costs and serve a greater number of unique patients.

15. Value-Based Agreements Grow
Contract
Lives
Total Spend
Commercial Risk
473,000
$ 1.6 B
Commercial Shared Savings
85,000
0.5
Medicare ACO
137,000
1.7
Medicaid
94,000
0.2
Medicare Advantage
46,000
Advocate Associates
30,000
0.1
Total
865,000
$ 4.6 B

16. Over 1 Million Patients in Registries
Chronic Disease
Hypertension
236,193
Coronary Artery Disease
98,045
Diabetes
67,521
COPD
46,982
Asthma
11,169
Wellness
Influenza Vaccination
1,224,235
Adult Wellness
897,502
Depression Screening
824,273
Cancer Screening
565,563
Pediatric Wellness
349,334
Childhood Immunization
19,583
Communication
10,125
Maternal Depression
4,173
Use of registries to assure evidence based care
Over last 10 years standard deviation across PHOs on control measures for diabetes has decreased from 11% to just over 2%
overcoming Socioecomonic status of inner city service area versus affluent suburbia and onboarding of new Advocate sites to get performance up to network median in first year

17. AdvocateCare® Outperforms National Trend
National Medical Expense Trend
Advocate HMO Medical Expense Trend
*BLS CPI-U Medical Care Services US City Average
**Non-Risk Adjusted HMOI/BA Medical Expenses PMPM

18. Top 3 in 2015 Medicare Shared Savings
Performance Year 2015
% Change
Person-Years
145,365
+10.8%
Benchmark
$11,729
+4.0%
Expenditure
$11,229
-0.8%
Quality Score
94.2%
+3.5%
Total Savings
$73 M
Earned Savings
$34 M
Benchmark grew
Expenses reduced
Quality improved 1 2 3
DRAFT

19. Post Acute Network (PAN)
Infusion
RT/HME
Hospice
Home Care
Palliative Care
Transition Program
SNF
LTACH IP
Rehab
Assisted Living
Physician at Home
Owned and in place
Build/
Partner

20. PAN - Improved Care at a Reduced Cost
38 dedicated MD/APN teams
Length of stay
Cost Savings
Readmissions
-4%
-20%
$19M

21. Medicaid Family Health Plan
Improved quality
Enhanced access
Reduced cost
Medical loss ratio 3% better than market *

22. Blue Care Direct Exchange Product
Growth product – 53,000 lives
Surplus
(prior to risk transfer)
Significant 2017 premium increase

23. Going Forward…
High Performance Network & Medicare Advantage are growth opportunities
Positioned for managed Medicaid
Favorable cost trend
Conservative approach to public exchange
Private exchanges 2015
Medicaid accountable care entity July 2014

24. Financial Profile Dominic J. Nakis
Chief Financial Officer and Treasurer

25. Risk Based Revenues Growing
9% in 2012 to projected 20% in 2017

26. Operating Performance Remains Strong// 24

27. Operating Cash Flow is Solid// 25

28. 2016 Positive Investment Returns//
Note: Both investment income and yield are net of fees
Expected return of 6.8% 27

29. Debt Profile
Tax-exempt debt of $1.6 billion, annual debt service is level and average life is 19 years

30. Well Diversified Debt Portfolio
Fixed Rate
$911 Mm / 58%

31. Strong Coverage and Capitalization
Note 2014 q1 is a rolling 12 month period // 31

32. Robust Cash to Debt Ratio// 32

33. Pension Plans Well Funded// 33

34. Substantial Liquidity Position// 34

35. Significant Capital Spend Past 3 Years// 35

36. Advocate Well Positioned
National leader in safety and health outcomes
Population health leader
Brand strength
Growth through new risk based products
Balance sheet strength and solid operating performance
AA bond ratings with stable (M/F) and positive (S&P) outlooks
Health outcomes and safety
Market position and brand strength
Financial strength
Track record of integrating new hospitals and physician practices
Pluralistic approach to physician relationships
Large and growing employed medical group
Success with clinical integration 42