Summary: As a consultant, manager and practicing physician, Dr. Saunders has broad healthcare expertise, especially involving managed care, health plan and provider operations and information technology. He has played a leading role in strategic planning, operations improvement and information technology planning initiatives for diverse healthcare clients, which have included major healthcare insurers, integrated delivery systems, physician practice management companies, hospitals, disease management companies and healthcare product/services companies. With strong organization, leadership, and communication skills, Dr. Saunders is able to work well with diverse professional groups and build consensus. A noted author and excellent speaker, he has worldwide experience with health care systems, and has developed innovative approaches to their analysis.

Management Experience: 8/97 - Present Vice President & Medical Director Healtheon Corporation Since joining Healtheon in late summer 1997, Dr. Saunders has led the strategic planning for and development of the company's entry into the healthcare information technology market. He has recruited his team members from Stanford, Harvard and various leading technology organizations. During his tenure Healtheon has formed two major strategic alliances for applications development, one with a leading provider organization in Northern California and a second with a national managed care organization.

9/94 - 8/97 Principal, Healthcare Consulting Practice A.T. Kearney and Company / Electronic Data Systems (EDS) Established and directed the San Francisco office of EDS' Management Consulting Services Healthcare Practice, serving as Associate Principal prior to the EDS acquisition of A.T. Kearney and subsequently elected Principal with A.T. Kearney. A leading member of the healthcare consulting practice focusing on payor and provider segments, Dr. Saunders has been responsible for developing new business, building the practice, creating methodologies and intellectual capital and leading consulting engagements, with a primary focus on business strategy for healthcare organizations.

KEY ACCOMPLISHMENTS Created the top-performing EDS Management Consulting Services office in the Healthcare Practice in terms of management performance, staff development and engagement activity with total bookings of approximately $9 million in 18 months, and played an instrumental role in developing the Healthcare Practice's largest accounts. Developed key methodologies and intellectual capital in areas of healthcare strategy and information systems planning for health plans and provider organizations.

Recent engagements and activities include: * Strategy and operations assessment of a multi-billion dollar national healthcare insurer. Identified opportunities to reduce medical loss and administrative expenses to return the organization to profitability, strengthen its market position and more effectively deliver managed care services * Assessment of call center operations for a large, national health plan and integrated delivery system (medical advice and business functions); identification of opportunities to better serve customers, leverage best practices, create scale economies and expand the clinical role to manage demand, speed access to treatment and reduce the cost of care * Lead strategic information systems planning efforts for numerous major healthcare payor organizations (six major U.S. Health Plans with more than one-million member lives each). Focus included identifying and linking business strategy and marketplace needs with information systems and electronic connectivity requirements, especially related to managed care, medical care management, payor-customer integration and sales/marketing. Developed a vision for "future care" systems functionality and architecture and analyzed migration strategies. * Lead strategic planning efforts for a large, national healthcare claims processing organization to identify new direction and services in the face of a changing healthcare market. * Lead planning efforts for a large healthcare payor organization focusing on the use of information technology to automate and enhance sales force effectiveness. Developed an internet-based strategy. * Lead consulting initiatives to help develop corporate strategy for new business planning for a major international healthcare product/services company involving disease management, clinical decision support, and other innovative healthcare services * Lead strategic planning and operations assessment for a major national physician practice management company * Lead strategic planning initiative for a regional physician practice management company * Performed re-engineering/benchmarking studies involving emergency department operations and intensive care unit operations for numerous academic medical centers; activities involved resource optimization, and analysis of queuing and process cycle times * Lead efforts to develop a clinical decision support product and business plan for a prestigious national healthcare provider organization * Lead strategic planning efforts for a mid-sized urban hospital, including MSO development * Lead strategic, operations and systems assessment of a large primary-care IPA

12/88 - 9/94 Executive Director, Physician-Hospital Organization San Francisco General Hospital, University of California San Francisco School of Medicine (9/93 - 9/94) Lead effort to implement an integrated healthcare delivery system involving a major academic medical center, a large university faculty medical group, a community clinic network and the San Francisco Department of Public Health. Responsible for executive direction, finance, business development, managed care contracting, provider relations, utilization management, medical management. Efforts lead to creation of a PHO in a highly-competitive managed care market, negotiation of the system's first managed care contracts including a major managed Medicaid program, and the successful re-engineering effort to transition operations to managed care.

Other accomplishments included successful strategic and operations planning/implementation for the acquisition of a medical group and integration of San Francisco International Airport's health services into the integrated system, and a successful plan for provision of Workers Compensation care for all City workers by the integrated delivery system.

Director, Emergency Medical Services San Francisco Department of Public Health (12/88 -3/31/94) University of California San Francisco School of Medicine Medical Director and Chief Administrator for the San Francisco Department of Public Health's Emergency Medical Services (EMS) / Paramedic Division which provides San Francisco's municipal "9-1-1" emergency medical services. Responsible for all aspects of EMS Division operations including budget, finance, administration, personnel, 911 medical dispatch call center, field operations, database management, information systems, and training. Reported and interacted with senior management within the Health Department, the Health Commission and the Mayor's office. The Division has 180 employees, $14 million budget, $22 million in gross revenue, and 60,000 ambulance dispatches each year.

Created one of the top EMS services in the Nation, implemented innovative quality programs, improved performance by 35%, decreased net program costs by 25% and increased revenue by 1000%. Devised and implemented innovative information systems, built custom facilities, implemented management reorganization and culture transition, conducted scientific inquiry, performed pioneering policy and health systems analysis using modeling and computer simulation, attracted new State and Federal grants. Managed emergency services during 1989 Loma Prieta earthquake and other disasters. International speaker and advisor on emergency services systems. Awarded San Francisco's manager of the year award, 1991.

7/85 - 12/88 Medical Director, Life Flight Emergency Services Vanderbilt University, Nashville, Tennessee Co-director of helicopter aeromedical transport service, quality management, teaching and research. Devised and implemented quality control programs, conducted research into emergency service systems operations management using modeling and computer simulation, established aeromedical research program. Also, co-founded private fixed-wing aeromedical transport service over a 5-state region in the Southeastern United States. Established sole heart-lung procurement program for transplants in Tennessee.

5/84 - 7/85 Director, Emergency Services University of Colorado, Health Sciences Center Directed the emergency department at a Level-I University-based trauma center, headed a 12-FTE faculty medical group, managed personnel, operations and $3 million budget. Lead department through designation of Level I trauma center status, devised and conducted operations improvement initiatives to improve operating performance, helped develop state-wide medically indigent program, implemented ED research program, recruited and hired physician staff.

Selected Honors/Activities: 1991 Public Managerial Excellence Award for leadership by the San Francisco Mayor's Fiscal Advisory Council / San Francisco Chamber of Commerce.

1992 Laerdahl Best Scientific Presentation award at the 1992 National Association of EMS Physicians Annual Conference and Scientific Assembly.

Chairman, San Francisco EMS Management Information Systems Task Force and Mayor's 9-1-1 Task Force, San Francisco.

President-elect, Tennessee Chapter, American College of Emergency Physicians, 1989-90. Secretary, 4/87-4/88.

Education: 5/80 Johns Hopkins University School of Medicine, Doctor of Medicine. NIH award for research, 1977.

6/76 University of Southern California, BS, Biology; Magna Cum Laude, Phi Beta Kappa, Applemann award for outstanding senior in Biological Sciences.

Postgraduate Training: 7/81 - 6/83 Residency in Internal Medicine, University of Colorado Health Sciences Center, Denver, Colorado.

6/80 - 6/81 Internship in Internal Medicine, University of Colorado Health Sciences Center, Denver, Colorado.

Personal Information: Born: September 1, 1954, Minneapolis, MN. Wife: Rebecca L. Harrington; Children: Evan 7, Brooke 6, Katherine 3. Captain, USAR. 3/82 - 3/92. Private Pilot, Instrument Rated.

Academic Appointments: 12/88 - 9/94 Associate Professor of Medicine, University of California San Francisco School of Medicine

7/85 - 12/88 Assistant Professor, Medicine and Surgery, Vanderbilt University School of Medicine

7/83 - 6/85 Assistant Professor of Medicine, University of Colorado Health Sciences Center

Research and Publications: Author/editor of largest-selling textbook on Emergency Medicine. Over forty published original articles in peer-reviewed journals. Reviewer, Annals of Emergency Medicine, 6/88 - present. Over 70 national and international presentations. Areas of research have included healthcare management, operations analysis, emergency services systems and cardiac arrest resuscitation. Investigator on grants totaling over 1.3 million.

Clinical Experience: 7/91 - Present Attending Physician, Emergency Services, Associated Emergency Physicians, San Jose Medical Center.

12/88 - 9/94 Attending Physician, Emergency Services, San Francisco General Hospital, San Francisco, California.

7/85 - 12/88 Attending Physician, Emergency Services, Vanderbilt University Medical Center, Nashville, Tennessee.

7/83 - 6/85 Attending Physician, Emergency Services, University of Colorado Health Sciences Center, Denver, Colorado.

Certifications: Diplomate, American Board of Emergency Medicine Diplomate, American Board of Internal Medicine Fellow, American College of Emergency Physicians Fellow, American College of Physicians Advanced Cardiac and Trauma Life Support Instructor and Affiliate Faculty FAA-Designated Airman Medical Examiner

Licensures: California Board of Medical Quality Assurance #045594, 1988 Tennessee Board of Medical Examiners #16349, 1985 Colorado Board of Medical Examiners #24072, 1981 Maryland Board of Medical Examiners #D25511, 1980 Federal License Examination (FLEX), 1980 DEA #AS1246809 7/97 Charles E. Saunders, MD, FACEP, FACP page 5

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