Frequently Asked Questions from Potential Partner/Owners

1. How long has ASC been in business?
A. ASC was recently created based on over 40 years of clinical experience from the three owners and the incredible success in home health care that the CEO has had in the past 10 years.

2. How successful have former home health businesses been financially?
A. The CEO along with key partners has created four agencies that have grown to a combined 20 million in annual revenue.

3. How much will I make?
A. You will be compensated 100% of your current salary up to $100,000 starting your first day of employment. Once the agency starts receiving payments from Medicare you will be given a raise to 110% of your current salary. In addition, you will be eligible for a monthly bonus. Please call for details.

4. How do I become an owner of ASC?
A. In qualifying markets, You will be treated as an employee for the first year of our relationship. You will sign an employment agreement and be given the stock purchase contract to review once you are selected for the partnership program. One year from the date of Medicare certification you will be awarded 5% equity in the office you manage. For each year after that you will be awarded an additional 5% until you reach the maximum threshold of 25% on year five.

B. There is also an accelerated partnership program that would allow you to earn earn additional equity. Please call for details.

5. What will be asked of me during the startup phase?
A. You will be asked to assist in some occasional activities such as office selection, office setup, and occasional errands for the company. You will be asked to record your time on a spreadsheet and you will be reimbursed your current hourly equivalent rate of pay. You will be paid for all hours worked.

6. When will I start full time with the company?
A. Once the application for a new license has been received and accepted by the state you will be asked to give proper notice to your current employer so that you will be available to start work within 2 to 4 weeks. Once you start full time your salary will begin.

7. What kind of benefits do you have?
A. You will have the following benefits day one of employment:

• PTO accrual of 7 hours per pay period
• Access to SIMPLE IRA which is similar to 401K. We will match 3% of your salary not to exceed your personal contributions
• If you need group health coverage we will cover 75% of the cost of your cobra or we will cover 100% of the cost of a stand alone plan with a $500 per month cap. Our own group health plan is under negotiations and should be initiated soon
• Mileage reimbursement of .38 mile

8. What if I decide I do not like the program and I want to leave?
A. If you resign your position at any time after the completion of your first year from the date of Medicare certification then the company will repurchase your equity for 3 times trailing 12 months earnings.

B. If you leave within your first 12 months then there is no penalty and no equity to be repurchased

9. How much help will I have in the office?
A. We have worked very hard on developing a staffing model that is based on census. Therefore, as the census grows you will be given additional support when certain census targets are met. During the startup phase you will have at least one administrative assistant to assist in the office.

10. Will I be allowed to hire and fire employees.
A. You will be given the opportunity to hire and fire employees so long as it is within the staffing model that has been established and it is within the limits of our policies and procedures for disciplinary action.

B. The day to day control of the office will rest in your hands but there will be support available at all times. We will hold weekly meetings with you to review progress and assist with any problems

11. Are we automated?
A. We are currently in negotiations with several leading home health software companies. The short list includes Lewis, Kinnser, and Cerner. We will automate the back office but will not be using point of care at this time.

12. How long does it take to receive Medicare certification?
A. We should receive Medicare certification within 90-180 days.

13. How long does it take to start getting paid for the patient care we provide?
A. We will start receiving payments approximately 45 days following our Medicare certification date

14. When would I receive training on the systems and policies of ASC?
A. Once selected you will be given full access to all company policy manuals. You will be asked to start familiarizing yourself with these manuals. Additional training will be done with onsite visits as well as unlimited phone support

15. How stable is the home health market?
A. Medicare has just finished overhauling the Medicare PPS system. The new changes will go into effect January 2008. Based on historical averages, we should not see any additional reimbursement changes for at least 5 to 7 years. The upcoming PPS revision is budget neutral meaning that home health agencies will continue to receive the same payments as before.

16. How will the agency be staffed?
A. The agency will be staffed with PRN per visit employees until we start receiving payments from Medicare. The only full time, salaried staff in the beginning will be the Administrator and administrative assistant. Based on census and staffing models, new full time staff will be added as needed and justified based on census. This will be continually evaluated through a collaborative effort between ASC and our partner.

17. Who will do coding?
A. Coding will be done by the agency director until such time when a certified coder can be hired either for the branch office or for the company as a whole. The VP of nursing and patient services is able to assist in all coding questions as needed

18. Why is ASC a better way to go then starting my own business?
A. There are many home health companies out there that have found a way to make small profit margins. The owners of ASC have created many agencies in different parts of the country that routinely operate at above average margins while still delivering excellent care and being ranked in the top 10% on outcomes by Medicare. In addition, there is an endless amount of federal and state regulations, codes, and labor laws that you must know not to mention all the changes to these codes that occur on a regular basis. As a partner, you will have strong support to help you stay on top of changes.

B. We have a proven model that has worked time and time again. We feel strongly that a partnership with us will give you the financial rewards you are looking for as well as the peace of mind in knowing that you are working with seasoned professionals

19. How much field work will be required of me?
A. While we are seeking our Medicare accreditation survey and caring for ten free patients you will be asked to assist with field work as much as possible. Once survey is completed and payments are coming in you will transition more into a managerial role and only occasionally be asked to do visits.

20. How financially stable is ASC.
A. All current owners are financially committed to the company. Funds held by and available to the company significantly exceed any anticipated budgeted need.