CEO 6 Month Report

Despite the challenges of the COVID-19 pandemic, Northern Light Health remains financially strong and ready to care for our Maine communities well into the future.

FINANCIAL STABILITY

A LOOK BACK • Secured a $150M line of credit.

Supply Chain • The Group Purchasing Organization conversion was completed. Initial impact on pricing saving is estimated to be $10M annually. • Executed the first phase of “Plant and Clinical Equipment Obsolescence” Capital Plan. Revenue Cycle • Reduced debit balances more than 90 days old by $29M since January 2020. • Reduced all credit balances by $4.3M since March 2020. • Increased daily average cash collected by $1.3M since May 2020. • Productivity increased by 58% since April 2020. • Quality remains above our 90% target with an average of 93% since January 2020.

• Received $88.1M from the Cares Act to support care delivery during COVID-19. In addition, we continue to pursue funding from other sources (e.g. FEMA). • Received $176.5M of Medicare Advances that will be recouped by Medicare over the next eight to 17 months. • Recovery plans project to bring us to an operating cash flow break-even by the year end. • Received more than $3M from the State of Maine for COVID-19. • Patient revenue continued to increase since April, beating recovery plan estimates. • Through June, achieved a 5.6% savings in the Home Office budget. We are on track to achieve an additional 5% by year-end. • Completed the investment advisor selection process resulting in a significant reduction in fees, and have completed a strategic risk analysis to determine investment portfolio asset allocation.

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