1. Simple Low Cost Interventions Yielding Extraordinary Outcomes

3. The Industry Today Centers for Disease Control (CDC) Center for Medicare/Medicaid Services (CMS) –POA 10/1/08 Mandatory Reporting Institute for Healthcare Improvement (IHI) Consumerism Food and Drug Administration (FDA)

4. The Industry Today Infection tracking begins Oct. 1, 2007 Reporting begins Oct. 1, 2008 Pressure Ulcers Vascular and Urinary Tract Infections from catheters Mediastinitis Falls “Never Events” VAPs (2009) Center for Medicare/Medicaid Services (CMS) Source: Federal Register, Vol 72, No 162, August 22, 2007

5. The Challenges Pressure Ulcers$30,000 1 UTI’s$4,700 2 SSI’s$25,500 3 MRSA SSI’s$100,000 4 VAP’s$40,000 5 Hospital Acquired Infection (HAIs) costs cited in the literature (per event) 1. Amlung SR, et al, Adv Skin Wound Care, Nov/Dec 2001; 14(6):297-301. 2. Chen Yin-Yin, Chou Yi-Chang, Chou Pesus. Impact of nosocomial infection on the cost of illness and length of stay in intensive care units. Infection Control Hosp Epidemiology 2005; 26:281-7. 3. Stone PW, et al, Am J Infec Control. Nov 2005; 33(9): 501-9. 4. Engemann JJ, et al, Clin Infec Dis 1 March 2003; 36(5): 592-8. 5. Rello J, et al, Chest, Dec 2002; 122(6):2115-21.

6. The Sage Solution Fundamental belief in prevention versus treatment Simple, low cost interventions Documented success as Best Practice Focused effort

7. Bathing Risk factors for HAI’s and Early Detection of Skin Injury Incontinence Care, Heel Floatation Risk Factors for Pressure Ulcers Oral Care Risk factors for Hospital Acquired Pneumonia Preoperative Skin Preparation Risk of Surgical Site Infection Interventional Patient Hygiene

8. The Sage Solution Second most common pressure ulcer 1 Many products on market are ineffective Proven outcomes in heel ulcer reduction 2 Issue: Pressure Ulcers — Heels 1 Whittington KT, Briones R, Adv Skin Wound Care. Nov/Dec 2004; 17(9):490-4 2 Walsh JS, Plonczynski DJ, Journal of Wound, Ostomy & Continence Nursing. March/April 2007; 34(2):178-183

9. Cost of intervention: $100 per patient Garrett D, Intervention with a new heel protection device and silver alginate dressing to prevent amputation of lower leg due to stage IV ulcer of the heel and malleolus. Case study conducted at Salem Village Nursing and Rehabilitation Center, Joliet IL, Oct 2006 The Sage Solution Issue: Pressure Ulcers — Heels

10. All-in-one approach to Incontinence Associated Dermatitis (IAD) Barrier solution in the cloth Proven reduction in IAD of up to 62% Driver S., Crit Care Nurse 2007 Aug: 27(4): 42-46 The Sage Solution Issue: Skin Injury (Pressure Ulcers)

11. Cost per LOS for the patient with fecal incontinence: $12 Sluser S, Consistency the key for treating severe perineal dermatitis due to incontinence. Poster presented at the Clinical Symposium on Advances in Skin and Wound Care (ASWC), Las Vegas, NV, 2005 Oct. Issue: Skin Injury (Pressure Ulcers) The Sage Solution

12. Unique solution of 2% CHG left on skin Documented reduction of MDROs Proven reduction in infections The Sage Solution Issue: Surgical Site Infections — MRSA 1 Prospective evaluation of six pre-operative cutaneous antiseptic regimens for prevention of surgical site infection, Poster presented at SHEA Conference, March 2006, Maki DG, Paulson DS. 2. Pre-operative Skin Preparation Protocol Results in Reduced SSI Rates, Rhee H, MD, Chair Infection Control Committee and Harris B, CIC, Infection Control Practitioner, Presented at Institute for Healthcare Improvement (IHI) Orlando, FL, December 2007.

13. Cost per patient per surgery: $5.50 per day Issue: Surgical Site Infections — MRSA The Sage Solution

14. Comprehensive approach to oral care Market share leader 1 Five years of clinical success documenting dramatic reduction and even elimination of VAP 2 The Sage Solution Issue: Ventilator Associated Pneumonia (VAP) 1 Based on GHX market share data, 2007 Suction Oral Care and Non-Suction Oral Care categories 2 Studies and symposia presentations found at http://www.sageproducts.com/education/vsymposiaPres.asp and http://www.sageproducts.com/education/varticles.asp

15. Average cost per patient in ICU: $100 Issue: Ventilator Associated Pneumonia (VAP) The Sage Solution

16. Revenue Preservation Potential investment per ICU patient Incontinence$12/stay Prevalon Boot$100/pair Comfort Bath$6/stay CHG$11/stay Oral Care$100/stay TOTAL$229/stay * * Assumes ICU average LOS 3.2 days. Additional $44.25./day after 3 days

17. ConditionCost per eachInterventionCost per intervention Pressure Ulcers$30,000 per 1 Comfort Shield$12/stay* VAPs$40,000 per 2 Oral Care$100/stay UTIs$4,700 per 3 Comfort Bath$6/stay Heel Ulcers$30,000 per 1 Prevalon$100/pr MRSA SSIs$100,000 per 4 CHG$11/stay 1. Amlung SR, et al, Adv Skin Wound Care, Nov/Dec 2001; 14(6):297-301. 2. Rello J, et al, Chest. 2002. Dec; 122 (6):2115-21. 3. Chen Yin-Yin et al, Infect Control and Epidem. March 2005; 26:281-7. 4. Engemann JJ, et al., Clin Infect Dis. 1 Mar 2003; 36(5): 592-3-8. * Assumes ICU average LOS 3.2 days. Simple, low cost interventions

18. Focus Educate Implement Measure Delivered Outcomes Sage Commitment

20. Thank You For Your Time