Change Healthcare : Investor Presentation

Change Healthcare

Inspiring a Better Healthcare System

January 2020

© 2020 Change Healthcare LLC and/or one of its subsidiaries. All Rights Reserved.

Legal

FORWARD LOOKING STATEMENT:

This presentation includes forward-looking statements that are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including information concerning our possible or assumed future results of operations; any statements of the plans, strategies and objectives of management for future operations; any statements regarding product or service developments, extensions or integration; any statements of expectation or belief; any statements regarding general industry conditions and competition; any statements regarding economic conditions; and any statements of assumptions underlying any of the foregoing. Forward-looking

statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be

materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on any forward-looking statements in this presentation. All forward-looking statements are based on information currently available to Change Healthcare and are qualified in their entirety by this cautionary statement. The statements herein speak only as of the date such statements were first made. Except to the extent required by law, Change Healthcare assumes no obligation to update any such forward-looking statements or other statements included in this presentation.

NON-GAAP MEASURES DISCLOSURE:

In the Company's earnings releases, prepared remarks, conference calls, slide presentations and webcasts, there may be use or discussion of non-

GAAP financial measures. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between the comparable GAAP financial measure and each non-GAAP financial measure are included in this press release after the consolidated financial statements. These non-GAAP financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP.

ADOPTION OF NEW REVENUE RECOGNITION STANDARD:

Change Healthcare adopted the new revenue recognition accounting standard Accounting Standards Codification ("ASC") 606 effective April 1, 2019

on a modified retrospective basis. Financial results for reporting periods during fiscal year 2020 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to fiscal year 2020 are presented in conformity with the prior revenue recognition standard ASC 605. This presentation and the related press release includes additional information to reconcile the impacts of the adoption of the new revenue recognition standard on the Company's financial results for the three and six month periods ended September 30, 2018. This includes the presentation of financial results during fiscal year 2019 under ASC 605 for comparison to the prior year.

© 2020 Change Healthcare LLC and/or one of its subsidiaries. All Rights Reserved.	2

Change Healthcare: Investment Highlights

Leading Independent Healthcare Technology Company Providing Data and Analytics Driven Solutions For Payers, Providers and Consumers

$3 Billion	31%	$1 Trillion	88%	14 Billion
Revenue	Adj. EBITDA	Market Opportunity	Recurring Revenue	Transactions
Highly Diversified	Strong Margin Profile;	30% of U.S. Healthcare	Predictable Revenue Base;	Largest Independent
Revenue With No	Expected To Expand 50-75	Spending is Waste(1);	30,000 Customers and 700	Network; Over $1 Trillion
Customer More Than	Bps Per Year with Strong	$3.6T US Healthcare	Channel Partners	in Claims and $150 Billion
4% Of Revenue	Free Cash Flow	Market Growing ~5-6%		in Payments Distributed

per year

Note: All numbers are approximate.

Note (1): JAMA Study 10.7.19 - "Waste in the US Healthcare System"

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Innovating from the Center of the Healthcare Ecosystem

Data and Connectivity

Unique position at the center of the healthcare ecosystem

Unparalleled transaction volume

14B transactions $1T in claims

In-the-workflow connectivity

5,500 hospitals

900,000 physicians

Comprehensive Solutions

Serving payers, providers, labs, pharmacies, consumers, others

Software &

Analytics

Network

Solutions

Technology

Enabled

Services

Technology Partner of

Choice

700 industry-leading partners to drive innovation in healthcare

Solutions powered by the Intelligent Healthcare Platform

Note: All numbers are approximate.

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Delivering Differentiated Value for our Customers

Enhance

engagement &

access

Improve clinical

outcomes

Improve financial

outcomes

Software &	Network	Technology
Analytics:	Solutions:	Enabled Services:
Solutions across revenue	Leverages our network to	Services to support financial
cycle, payment accuracy,	enable financial,	and administrative
clinical decision, value-based	administrative and clinical	management, value-based
payment, engagement, and	transactions, electronic	care, communication and
workflow	payments, and provides	payment
	clinical and financial data
	analytics

Synergies drive innovation for customer value and growth

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Well Positioned to Address Industry Tailwinds
	Increasing	Inspiring a Better Healthcare System
	Consumerism
		Consolidation
Growing		and Vertical
Government		Integration
Influence
New entrants &	Rise of Value-
Based Care
competitors	System	Reducing	Building a	Focusing on
	Inefficiency	healthcare's	connected	outcomes for
		cost burden	healthcare	healthcare
	Increasing	Emerging	ecosystem	stakeholders
	Regulation +
	Technology
	Compliance

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Unparalleled Reach Across Healthcare

One of the largest healthcare financial and administrative networks in the United States

Leading analytics solutions		Pervasive network providing insights		Leading payer and provider relationships

Note: All numbers are approximate.

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Offering a Full Suite of Modular Integrated Solutions

Comprehensive suite of solutions allows modular or enterprise delivery / sales

Strategic leverage between solutions

All solutions necessary to solve emerging issues - Change Healthcare is partner of choice

Providers

Acute

Ambulatory

Post Acute

Labs

Other

Technology-Enabled Services

Revenue Cycle		Value-Based					Communication
	Consulting			and Payment
Management		Services
						Services
				Software & Analytics
Network &	Risk Adjustment & Consumer	Clinical Decision	Revenue Cycle	Imaging &
Financial	Quality		Engagement	Support	Technology	Clinical Workflow
Management	Performance						Solutions
		Intelligent Healthcare Network
✓• One of the largest	✓•	Enables a broad set	✓• Data platform with	✓• Interoperable
financial and		of data and	modern architecture	capabilities and user
administrative		analytics offerings					experience
healthcare network

Payers

Commercial

Blue Cross Blue

Shield

Medicare

Medicaid

Other

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Our End-to-End		Member
	Experience
Solutions Help Payers	Medical Network	Consumer Payments
& Communications
Improve Financial,
Clinical, and Member
Experience Outcomes	Payment
	Risk &
	Accuracy	Quality
		Value-based
		Care

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Our End-to-End Solutions Help Payers Improve Member Satisfaction, Clinical Care & Revenue Performance

Medical Network

Delivering reliability and optimal impact at every stage of the eligibility and claims continuum

Payment Accuracy

Drive efficiencies earlier, optimize fee for service, and identify opportunities for fee for value with a connected healthcare ecosystem

Value-based Care Solutions

Collaborate with Provider Networks to Achieve the Triple Aim by enhancing the patient experience, improving population health and reducing healthcare costs

	Member
	Experience
Medical	Consumer
Payments &
Network	Communications

Solutions

Payment	Risk &
Accuracy	Quality

Value-based

Care

Member Experience Solutions

Engage with members so they can increase their understanding of medical costs, locate appropriate funding sources for medical bills, and access easier payment options

Consumer Payments & Communications Solutions

Simplify the provider payment process with a broad array of payment networks and solutions and improve member communications, member portal engagement, and the member healthcare financial experience

Risk & Quality

Mitigate risk, optimize savings across the claim lifecycle and providing high medical record retrieval and clinical review rates, accuracy, transparency for risk adjustment and HEDIS

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Our End-to-End		Patient
	Experience
Financial Solutions	Communication	Financial
& Payment
Clearance
Solutions
Help Providers Improve
Patient Satisfaction &
Revenue Performance		Financial
Financial	Solutions
	Revenue
	Analytics	Integrity
		Reimbursement
		Management

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Our End-to-End Solutions Help Providers Improve Patient Satisfaction & Revenue Performance

Communication & Payment Solutions (Experience)

Acquire & retain patients and improve the consumer experience

Financial Analytics Solutions

Access insights across your claims cycle performance, benchmark performance with peers, and quickly address obstacles

Reimbursement Management

Solutions

Improve cash flow, mitigate workflow inefficiencies, minimize denials.

Our financial and administrative network is the largest in the industry, and we can help you manage daily revenue cycle and business operations more effectively

Patient

Experience

Communication	Financial
& Payment
Clearance
Solutions

Financial

Solutions

Financial	Revenue
Analytics	Integrity

Reimbursement

Management

Patient Experience Solution

Engage with patients at all points of service

Financial Clearance Solutions

Accelerate reimbursement, reduce denials, and optimize workflows from registration through point-of-service collections

Revenue Integrity Solutions

Meet your compliance obligations, optimize reimbursement, and streamline operations with AI-driven solutions and services

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Unique End-to-End Competitive Advantages

End-to-end payment accuracy solution

Payer Connectivity Services

Correct claim submission data to improve auto adjudication

Pre-Pay Insight & Review

Identify and review abnormal billings

Integrated Repricing Network

Reprice OON claims based on optimal network

Intelligent Healthcare Network	Adjudication			Post-Payment
			Gateway	Pre-Payment
	Coding Advisor		ClaimsXten™			Audit & Recovery
	Help reduce outlier costs		Clinically sourced edits to help improve savings and payment accuracy		Identify, validate and recover
	for common procedures		Episode Management			inappropriate payments
			Support prospective bundled payment programs

19 of the top 20 plans use our payment accuracy solutions-

20+ claim systems

integrations

Leveraging InterQual to Build an Ecosystem for Exception Based Utilization Management

AutoReview™

IQ Connect™

InterQual provides clinical decision

support to >4,600

EHR		UM/CM SYSTEM
Clinical Data	IQ	Medical Review

	Automated Medical Review
Provider	Provider

UM/CM SYSTEM

Authorization

IQ IQ Rules and

Medical Review

Automated Authorization

$

Payer

hospitals & facilities, plans covering ~100M lives

Administrative Savings I Fewer Denials I Clinicians Focused on Patient Care I Management by Exception

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Delivering Innovation and Value Through Artificial Intelligence
								CARESELECTTM
							CHARGE CAPTURE	October 2019
							September 2019
					PROPENSITY TO DENY
				CLAIMS LIFECYCLE AI	June 2019		Enhance EHR
		HEALTH FIDELITY
		February 2019			Increase detection of	workflow efficiency
			PARTNERSHIP				to help physicians
	DUAL ELIGIBILITY		January 2019		Prevent denials by	missing charges before	streamline imaging
				claims are filed to	orders and comply
ZEBRA MEDICAL VISION	August 2018				proactively
		Optimize the claims	accelerate cash flow	with PAMA
PARTNERSHIP				identifying problem
			lifecycle by	and optimize revenue	requirements.
		Increase claims	claims and resolving
November 2017			predicting claims
			accuracy and	issues before they're
	Identify, engage,		completeness,
			filed
	address compliance
	and enroll members	denial probability,
Improve the	obligations by more
who are eligible for	and flagging missing
efficiency of and	Medicare and		accurately	data
effectiveness of	Medicaid	identifying ICD and
radiologist reading			HCC codes
environment
workflows
Breadth, depth and variety of data	Embedded in the workflow		AI and Healthcare talent

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Predictable Financial Model with Multiple Growth Drivers

Significant white

Innovation

space opportunity

at scale

Strong industry
tailwinds	Cross-selling	Operating
	efficiency and
	within existing
	synergies
	customer base

Multiple Growth Drivers

FY'21 Revenue Growth Guidance 4%-6% FY'21 Adjusted EBITDA guidance 6%-8%

© 2020 Change Healthcare LLC and/or one of its subsidiaries. All Rights Reserved.	15