E-Newsletter: Healthcare Purchasing News. Healthcare Purchasing News Daily Update. Average Newsletter Recipient: 25,943

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JANUARY 1, 2016 DECEMBER 31, 2016 Established: 1977 Issues Per Year: 12 Issues This Report: 12 subscriptions@hpnonline.

com PUBLICATION DESCRIPTION Since 1977, HEALTHCARE PURCHASING NEWS (HPN) magazine remains the only comprehensive healthcare business news magazine dedicated to reporting the

Our readership includes the healthcare executives, and professionals from supply chain, purchasing and materials management, value analysis, surgical services, critical care,

HPN has 60 CS/SPD continuing education articles available on our website for CEU credits.

organizations or alliance, multi-hospital system corporate headquarters, government purchasing organizations, group practice/clinics, surgi-centers, ambulatory care centers,

analysis coordinators, OR materials managers, assistant materials managers, other materials management personnel, chief executive officers, chief financial officers, chief

personnel, central service directors, central service supervisors, central service managers, other central service personnel, infection control practitioners, infection

supervisors, other OR personnel involved in purchasing, head nurses/directors of nursing, nursing/practitioners, medical directors, professional department heads, consultants,

1 JANUARY 1, 2016 DECEMBER 31, 2016 Established: 1977 Issues Per Year: 12 Issues This Report: 12 PUBLICATION DESCRIPTION Since 1977, HEALTHCARE PURCHASING NEWS (HPN) magazine remains the only comprehensive healthcare business news magazine dedicated to reporting the information, solutions and stories about medical products and systems that affect healthcare supply chain management, monthly in-print and daily online. Our readership includes the healthcare executives, and professionals from supply chain, purchasing and materials management, value analysis, surgical services, critical care, infection prevention, central service and sterile processing as well as clinical members of the product evaluation committees at healthcare facilities. HPN has 60 CS/SPD continuing education articles available on our website for CEU credits. Magazine 31,428 FIELD SERVED/DEFINITION OF RECIPIENT QUALIFICATION HEALTHCARE PURCHASING NEWS serves healthcare professionals in hospitals, healthcare group purchasing organizations or alliance, multi-hospital system corporate headquarters, government purchasing organizations, group practice/clinics, surgi-centers, ambulatory care centers, long-term and home health care, insurance/accounting/investment/3rd party administrators, consultants, and integrated networks, distributors and manufacturers, and others allied to the field. recipients of HEALTHCARE PURCHASING NEWS are administrators, VPs of materials management, directors of materials management, material managers, VPs of support services, value analysis coordinators, OR materials managers, assistant materials managers, other materials management personnel, chief executive officers, chief financial officers, chief operating officers, hospital administrators, chief purchasing directors, purchasing managers, buyers, purchasing agents, contract directors/managers, other purchasing personnel, central service directors, central service supervisors, central service managers, other central service personnel, infection control practitioners, infection prevention directors, infection prevention supervisors, OR directors, OR managers, OR supervisors, surgical services directors, surgical services managers, surgical services supervisors, other OR personnel involved in purchasing, head nurses/directors of nursing, nursing/practitioners, medical directors, professional department heads, consultants, clinical educators and evaluation/standardization and safety committee members, MMIS manager/materials IT System Managers, Environmental Services Managers, and other titled and non-titled personnel. Newsletter 25,943 Average Audience Reach 214,228 Website 156,857 AUDIENCE REACH: JANUARY 1, 2016 DECEMBER 31, 2016 Magazine E-Newsletter: Healthcare Purchasing News Website 12 Issues per year Average Monthly Print Distribution: 31,428 Healthcare Purchasing News Daily Update Average Newsletter Recipient: 25,943 Average Monthly Visitors: 156,857 Average Monthly Page Views: 345,857 Average audience reach calculated by combining average total monthly qualified unduplicated magazine distribution, total average newsletter recipients, and total average monthly visitors/user sessions. Average monthly visitors/user sessions calculated by dividing the total visitors/user sessions for the period January 1, 2016 December 31, 2016 by 12 months. Average monthly page views calculated by dividing the total page views for the period January 1, 2016 December 31, 2016 by 12 months. Please see the following pages for Annual Audit Report: Recipient Classification, Subscription Source, Recency of Renewal, Business/Industry and Job Title Classification, Supplemental Data, Geographical Distribution, Additions and Removals, Circulation by Issue; Digital Activity Report; Explanation, Audit of Internal Records and Affidavit.

2 EXPLANATION Publisher is not required to submit data for all paragraphs/tables. Digital Activity report features data that has not been audited. Source for Association/Group/Directory Distribution Lists (Print): Date(s) Added to File APIC 07/2016 Pinpoint 11/2016 Trade Show/Special Event Distribution Locations: Date(s) Attended Location # of Copies World Congress Summit - Healthcare Supply Chain Management 01/25/16-01/26/16 New Orleans, LA 50 HIMSS-Healthcare Information and Management Systems Society 02/29/16-03/04/16 Las Vegas, NV 75 AORN-Association of Operating Room Nurses 04/03/16-04/03/16 Anaheim, CA 185 IDN Summit & Reverse Expo 04/04/16-04/06/16 Orlando, FL 50 IAHCSMM-Intl Association Healthcare Central Service Material Mgmt. 04/24/16-04/27/16 San Antonio, TX 210 AACN-Association of Critical-Care Nurses 05/16/16-05/19/16 New Orleans, LA 150 GHX-Healthcare Supply Chain Management 05/23/16-05/25/16 Austin, TX 50 AAMI-Association for the Advancement of Medical Instrumentation 06/03/16-06/06/16 Tampa, FL 25 APIC-Association Professionals in Infection Control & Epidemiology 06/11/16-06/13/16 Charlotte, NC 125 AHRMM-Association Healthcare Resource & Materials Management 07/31/16-08/03/16 San Diego, CA 235 AHE-Association for the Healthcare Environment 09/19/16-09/22/16 Pittsburgh, PA 150 IDN Summit & Reverse Expo 09/19/16-09/21/16 Phoenix, AZ 100 OR Manager Conference 09/21/16-09/22/16 Las Vegas, NV 300 AHVAP-Association Healthcare Value Analysis Professionals 10/19/16-10/21/16 Scottsdale, AZ 35 SMI-Strategic Marketplace Initiative 10/25/16-10/27/16 Denver, CO 35 TOTAL 1,775 Verified has conducted an audit of printing, distribution, and financial records, as well other data to substantiate circulation data submitted to Verified. This audit followed guidelines prepared in conformity with generally accepted circulation auditing procedures involving records covering all distribution methods utilized for qualified circulation during the period(s) covered by the reports. The results of this audit warrant the issuance of this audit report to as a true and accurate statement of the qualified circulation of the client publication. Verified Audit Circulation swears that to the best of its knowledge, all statements contained in this report are true and accurate. 900 Larkspur Landing Circle, Suite 230, Larkspur, CA Telephone

3 RECIPIENT CLASSIFICATION RECIPIENT Non-Paid Paid Percent Individual by Name and Title and/or Company 31,550-31, % Individual by Name Only Title Only Company Name Only Circulation 31,550-31, % SUBSCRIPTION SOURCE AND RECENCY OF RENEWAL Renewed, Requested, or Updated Within RECIPIENT Non-Paid Paid 1 Year 2 Years 3 Years 3+ Years Percent Direct Request from the Recipient 23,363-9,370 9,081 4,912 N/A 23, % Request from Recipient's Company N/A - - Association/Group/Directory Lists 8,187-3, ,709 8, % Circulation 31,550-13,364 9,970 5,507 2,709 31, %

4 BUSINESS/INDUSTRY CLASSIFICATION JOB TITLE JOB TITLE BUSINESS/OCCUPATION Non-Paid Paid A. VPs, Directors and Managers of Material, VPs of Support Services, Assistant Materials Mgr., Other Material Mgmt. Personnel, Contracts- Director, Manager, Supervisor; Value Analysis Coordinator, MMIS Manager/ Materials IT System Manager B. Chief Purchasing Directors, Purchasing Managers; Buyers, Purchasing Agents and Other Purchasing Personnel C. CEO,CFO, COO, Hospital Administrator D. Infection Control Practitioners, Infection Control Directors/ Supervisors E. OR Directors/ Managers/ Supervisors; Surgical Services Directors/ Managers/ Supervisors; OR Material Manager; Other OR Personnel Involved in Purchasing F. Central Service Directors/ Supervisors/ Managers, Other Central Service Personnel (Tech, Coord), Environmental Svcs. Mgr G. Head Nurse/ Director of Nursing; Medical Director; Professional Department Head; Evaluation/ Standardization & Safety Committee Member; Clinical Educator; Nursing/Practitioner H. Consultant; Other Percent 1. Stand Alone Hospitals (for profit, non-profit, government) 20,475-3,664 2,511 2,426 3,205 2,854 3,124 2, , % 2. Integrated Networks/IDN (multiple hospitals/alternate sites) 3,855-1, , % 3. Hospital Group Purchasing Organization or Alliance 1, , % 4. Multi-Hospital System Corp Headquarters 1, , % 5. Government Purchasing Agencies % 6. Surgi-centers/Ambulatory Care Centers % 7. Long Term Care % 8. Home Health Care % 9. Group Practice/Clinic % 10. Insurance/Accounting/Investment/3rd Party Administrator % 11. Distributor % 12. Manufacturer % 13. Consultant % 14. Other % Circulation 31,550-6,296 4,057 3,580 4,427 4,138 4,502 3, , % 20.0% 12.9% 11.3% 14.0% 13.1% 14.3% 12.5% 2.0% Analysis based upon the December 2016 issue.

5 BUSINESS/INDUSTRY CLASSIFICATION NUMBER OF BEDS NUMBER OF BEDS BUSINESS/OCCUPATION Non-Paid Paid A. 500 or more B C D E F G H Not Classified Percent 1. Stand Alone Hospitals (for profit, non-profit, government) 20,475-1, ,346 1,760 2,840 2,342 1,366 3,194 5,154 20, % 2. Integrated Networks/IDN (multiple hospitals/alternate sites) 3,855-1, , % 3. Hospital Group Purchasing Organization or Alliance 1, , % 4. Multi-Hospital System Corp Headquarters 1, , % 5. Government Purchasing Agencies % 6. Surgi-centers/Ambulatory Care Centers % 7. Long Term Care % 8. Home Health Care % 9. Group Practice Clinic; Insurance/Accounting/Investment/ 3rd Party Administrator; Distributor; Manufacturer; Consultant; Other 1,756-1, % Circulation 31,550-4,020 1,356 2,037 2,744 4,241 3,259 1,916 4,442 5,743 31, % Analysis based upon the December 2016 issue.

6 SUPPLEMENTAL ANALYSIS OF PRODUCTS, SERVICES SPECIFIED, RECOMMENDED, OR BOUGHT Parts/Products/Services INVENTORY CONTROL Asset Management Products/Services 8,786 Bar Coding/RFID,RTLS & Labeling Systems 8,918 Cabinets 9,282 Carts 9,866 Computer Hardware 8,334 Contract Management Systems 8,216 File & Retrieval Systems 8,004 Forms 8,533 Handheld/Point-of-Use Products 8,724 Instrument Tracking Systems 8,666 Materials Management/Supply Chain Info Systems incl. ERP modules 7,579 Printers/Scanners/Copiers/Multi-function 6,904 Storage Systems 7,050 Other Inventory Control Products 5,326 PATIENT CARE Bariatric Specialty Equipment/ Supplies 10,136 Diagnostic Equipment 10,482 ID/Security/Alert Systems 9,630 IV Systems/Syringes 10,599 Linen 9,948 Patient Beds/Furniture 10,320 Patient Transport/Lift Products 10,311 Patient Warming/ Positioning Products 10,334 Respiratory Care & Monitoring 10,074 Scales 9,939 Temperature/Blood Pressure Monitors 6,019 Wound Management/Bandages/Wraps 9,121 Other Patient Care Products 6,829 OPERATING ROOM Cardiac Equipment & Supplies 9,568 Catheters/Needles 9,937 Critical Care 9,647 Custom Procedure Trays/Kits/Packs 9,992 Drapes 10,030 Endoscopy/Endoscopic Products 9,998 Gowns 10,144 Instruments 10,691 Orthopedics 9,850 Scheduling Systems 8,822 Surgical Gloves 6,165 Surgical Lights, Lighting Systems 8,563 Tables and Stretchers 8,715 Wound Care/Hypothermia Products 5,889 OR Monitors/Displays 6,858 Other OR Products 6,415

7 SUPPLEMENTAL ANALYSIS OF PRODUCTS, SERVICES SPECIFIED, RECOMMENDED, OR BOUGHT (Cont.) Parts/Products/Services INFECTION PREVENTION Air Purification Systems 10,587 Cleaning Equipment & Supplies 12,017 Disaster Preparedness Products 11,081 Disinfectants & Sterilants 12,055 EtO Monitoring Devices 10,527 Gloves 12,132 Hand Hygiene Products & Dispensers 10,877 Protective Wear 12,142 Sharps Safety products 11,893 Sterilization Supplies & Equipment 11,867 Sterilization Wraps & Containers 10,125 Other Infection Control Products 7,843 Room Decontamination 7,152 OTHER PURCHASING & SERVICES Business Equipment & Supplies 7,610 Communications Equipment 7,116 Environmental Services Products 7,662 Facility Equipment & Maintenance 7,166 Food & Dietary Supplements 6,408 Food Service Equipment 6,473 Imaging Supplies & Equipment 6,904 Laundry Supplies & Equipment 6,918 Shipping and Transportation 6,925 Waste Management 7,089 None of the Above 3,821 Source Healthcare Purchasing News This is a supplementary analysis of the December 2016 issue and 24,919 or 79.0% of recipients who responded to the question: "Which of the following parts/products/services do you recommend, specify, or buy on the publisher s qualification form. Since any one respondent may have checked more than one response, the totals for each of these processing responses should not be added together and may exceed the total circulation. This data is presented for statistical and marketing purposes only.

8 U.S. GEOGRAPHICAL DISTRIBUTION REGION Non-Paid Paid Percent REGION Non-Paid Paid Maine % Kentucky % New Hampshire % Tennessee % Vermont % Alabama % Massachusetts % Mississippi % Rhode Island % E. S. Central 2,498-2, % Connecticut % Arkansas % New England 1,685-1, % Louisiana % New York 1,582-1, % Oklahoma % New Jersey % Texas 2,042-2, % Pennsylvania 1,538-1, % W. S. Central 3,740-3, % Mid Atlantic 3,733-3, % Montana % Delaware % Idaho % Maryland % Wyoming % D.C % Colorado % Virginia % New Mexico % West Virginia % Arizona % North Carolina % Utah % South Carolina % Nevada % Georgia 1,085-1, % Mountain 2,159-2, % Florida 1,685-1, % Alaska % S. Atlantic 5,671-5, % Washington % Ohio 1,391-1, % Oregon % Indiana % California 2,042-2, % Illinois 1,310-1, % Hawaii % Michigan % Pacific 2,950-2, % Wisconsin % U.S. Territories % E. N. Central 5,289-5, % U.S. 31,405-31, % Minnesota % Canada % Iowa % Foreign % Missouri % Foreign % North Dakota % South Dakota % Nebraska % Kansas % Percent W. N. Central 3,637-3, % 31,550-31, %

9 RECIPIENT LIST ADDITIONS AND REMOVALS BY ISSUE Additions Removals Non-Paid Paid Non-Paid Paid ISSUE Print Print Print Print Additions Removals Net January February March April May June July August ,258-1,258-1,258 1,258 - September October November December ,622-3,513-3,622 3, Month 1,002-1,002-1,002 1,002-6 Month Average Month 6,172-6,037-6,172 5, Month Average QUALIFIED CIRCULATION BY ISSUE ISSUE Non-Paid Print Paid Print January ,415-31,415 February ,415-31,415 March ,415-31,415 April ,415-31,415 May ,415-31,415 June ,415-31,415 July ,415-31,415 August ,415-31,415 September ,415-31,415 October ,415-31,415 November ,441-31,441 December ,550-31,550 6 Month Average 31,415-31, Month Average 31,428-31,428

10 DIGITAL ACTIVITY REPORT JANUARY 1, 2016 DECEMBER 31, 2016 E-NEWSLETTER ACTIVITY HEALTHCARE PURCHASING NEWS DAILY UPDATE E-NEWSLETTER: JANUARY 1, 2016 DECEMBER 31, 2016 MONTHLY AVERAGE Sent Net Delivered January ,042 27,052 February ,047 26,887 March ,730 27,027 April ,352 26,741 May ,259 26,318 June ,219 26,021 July ,693 26,272 August ,629 26,001 September ,009 25,567 October ,720 25,277 November ,949 24,458 December ,143 23,689 AVERAGE 28,233 25,943 Information obtained by a review of publisher s SMTP reports for the period January 1, 2016 December 31, Definitions: Average Net Delivery calculated by subtracting undelivered messages from sent messages. Monthly Averages calculated by combining the total newsletters sent/ delivered during a single month and dividing by the number of issues for that month. Average calculated by combining Monthly Averages for the audit period January 1, 2016 December 31, 2016 and dividing by 12. WEB VISITOR ACTIVITY JANUARY 1, 2016 DECEMBER 31, 2016 VISITOR ACTIVITY Page Views/ Impressions Visitors/User Sessions Unique IPs/Browsers Page Views per Visitor/ Browser Frequency Visit/Page Duration Visitor/User Session Duration January , ,088 68, :36 8:10 February , ,903 69, :21 6:58 March , ,312 73, :34 6:48 April , ,625 70, :28 6:34 May , ,034 65, :07 6:30 June , ,129 51, :42 7:01 July , ,810 60, :05 7:13 August , ,187 69, :52 9:58 September , ,214 65, :37 10:27 October , ,145 61, :29 10:48 November , ,960 56, :06 11:47 December , ,880 57, :11 14:47 Average 345, ,857 64, :15 8:14 Information for web visitor activity was obtained by a review of publisher s website Weblog Xpert analytics for the period January 1, 2016 December 31, The review was done independently. In Verified s opinion, the web visitor activity is fairly stated in this report.

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