David Knott

What has your experience been about finding health system partners that see

how healthcare is unfolding in America and what we need to do together to get to affordable quality and the steps that they can take to evolve their footprint and their mix of services.

What I hear you saying is the shift towards value-based payment in the case of hospitals, the global budget, allows them to think more about the continuum of care and then right care, right place, right time across that continuum.

And then by aligning the care in that way, they're able to make mission-sustaining margins and be able to continue to invest.

But as your point of view around the future models in health care, on the delivery system side, does the system get optimized through vertically integrated systems?

delivery systems that go the complete continuum of care and can move patients appropriately across that continuum?

Or do you see mixed models where the health systems, as an example, would own some portion of that continuum and then other entities maybe aggregate physician supply and provide the enabling technology

and then provide more of the integration coordination of them.

When you think about that mixed model, what would be examples of the type of

enabling infrastructure, evaluated services that Horizon would offer to your provider partners across that continuum of care?

With that array of enabling support services, are any of the components offered on an all-payer basis, or are each of these proprietary solutions between Horizon and your provider partners?

When you think about moving to this model and assembling this type of paradigm, how has that changed the skill sets you need, specifically within the four walls of Horizon?

And what does that mean in terms of the kinds of people you hire, skill sets you're looking for?

What sort of results have you seen from this new model?

This has been rolled out in the employer-sponsored market.

What kind of reception have you received from this?

How much do employers like it?

What kind of questions do they have as they see these new propositions in the market?

administrative expense intensive is this new model compared to the old way of providing broader PPO type networks?

When you think of how this model evolves over time,