Corporate Overview

A brief word about healthcare today and where we fit in

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1. Today's Healthcare Environment

   Cost Savings a Paramount Concern

   Today’s Healthcare Environment is more challenging than ever, as providers are faced with lower operating budgets, reduced capital expenditures and revenue short-falls. Despite modest recoveries from the troughs of 2008, as many as 20% of the hospitals in the United States still face negative operating margins today. In light of these financial conditions, cost savings is still a paramount concern for many healthcare organizations.

   Finding Savings in Equipment Service Alternatives

   Clinical engineering services is one area that is being analyzed for greater savings as the cost of maintaining equipment, even for smaller hospitals, can easily surpass $1.0 million per year. As capital reductions have led to longer equipment life, healthcare providers are finding more attractive trade-offs between the "savings" and "risks" of non-OEM service alternatives.

   OEM Service Organizations are modeled on approximately half of their equipment installed base generating service revenues with annual service contracts between 10 and 15% of the original price of the equipment. As the installed base of equipment continues to age, the customer's cost of maintaining these contracts through the OEM becomes increasingly more expensive relative to alternatives.

   With the advantage of being focused, vendor neutral and cost effective, Full Service Organizations are able to offer competitive alternatives to the OEM, especially for equipment entering its mid-cycle. In addition to the growing prominence of alternative service providers, many healthcare providers are analyzing or moving toward In-House service strategies as they seek to reduce costly service contracts by OEMs.
   

2. Masterplan Overview

   A Full Service Provider

   Masterplan is the nation’s leading Full Service Provider, serving more than 230 hospitals and managing over 300,000 pieces of medical equipment over a broad range of facilities nationwide. Masterplan provides a comprehensive solution for all medical equipment with a strong reputation for competency in high end diagnostic imaging equipment.

   Since its inception in 1974, Masterplan has established a strong national reputation as a leader in clinical technology management and medical equipment maintenance management programs. As the nation's leading independent organization of its kind, Masterplan has the unique ability to offer vendor-neutral, flexible and cost-effective service for a wide range of sophisticated equipment technologies.

   Our nationwide staff of over 500 imaging and clinical engineers distinguish themselves from the competition through unbiased technology assessment, consulting, and regulatory compliance assistance.

   A Worldwide Organization

   In 2009 Masterplan embarked on its most ambitious expansion by successfully contracting with one of the largest imaging centers in Europe covering over 12 countries. Masterplan has offices in Chatsworth, California, Nashville, Tennessee and Lugano, Switzerland. Masterplan is a Berkshire Partners portfolio company, a top quartile private equity firm with over $6.7 billion dollars under management, based in Boston, Massachusetts.

3. History

   In 1974, Malcolm Ridgway PhD received a grant from the W.K. Kellogg Foundation to start one of the nation's first biomedical engineering shared service organizations. At that time the organization was a subsidiary of the Healthcare Association of Southern California (HASC), a 240-member regional association that represents a variety of healthcare organizations including hospitals, hospital systems, and integrated delivery networks systems.

   During its early years, the company helped HASC's members address new technical challenges such as the early concerns about electrical safety for catheterized patients, the introduction of computerized patient monitoring systems, the efficient management of scheduled equipment maintenance, and energy conservation. The group quickly developed a national reputation for creative solutions to technical problems and became a major participant in the development of meaningful safety standards for hospitals.

   In 1986, the company embarked on an ambitious growth path, determined to transform itself from a regional player in Southern California to a national independent service organization with capabilities in the new imaging technologies, and a presence in the emerging non-acute (but healthcare-related) market. In the early 90s, this growth accelerated through the acquisition of a number of small regional and local businesses with similar or complementary technical services.

   Today Masterplan serves the full range of healthcare-related markets from individual hospitals, surgery and diagnostic imaging centers, to some of the nation’s largest hospital systems and integrated delivery networks. Masterplan has systematically grown its customer base from about 300 in 1992 to more than 4,000 nationwide today.

What Our Customers Should Expect

• A cost effective alternative to OEM contracts
• Independent, unbiased support for all brands
• Competitive solutions that meet or exceed the performance of existing service contracts
• Industry knowledge gained from years of experience and access to a large database of medical technology know-how and metrics from over 300,000 medical devices serviced today
• Flexibility to adapt to your needs