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  1. ESCOTechnologies Channel Partner Training Program

  2. About ESCO Technologies

  3. ESCO Technologies • Setzer Corporation founded in – 1947 • $80,000,000.00 Annual Revenues • 500 employees • 2400 Outsourced Certified Field Engineers

  4. About ESCO Technologies • ESCO Technologies catered to three different vertical markets: • Education- Sound , Audiovisual, Security • Healthcare- Nurse Call, telecommunications, entry access, audiovisual, CCTV • Commercial- telephone equipment and service • ESCO Technologies has been a leading provider nurse call and complete communications solutions throughout Ohio. • ESCO was named one of the largest tri state telecommunications equipment and service providers by Cincinnati Business journals and very well known as Ohio’s complete communications solution.

  5. ESCO Technologies introduced the CareConnect managed services program in 2006. ESCO’s experience, expertise, and strong foundation in all three markets afforded insight to an innovative managed services solution that specifically caters to the senior housing industry. • 2007 – ESCO Technologies partners with DISH Network to provide a customized television offering geared to senior housing • CareConnect managed service program inception created much excitement through being able to provide a complete solution AT NO COST. Deploying some of the first of our program throughout the state of Ohio- Kentucky- Alabama- Michigan- Tennessee- Mississippi- West Virginia- Colorado • CareConnect penetrated the market through utilization of a direct sales team. • In 2008 the direct sales team dissolved in order to penetrate and saturate and much larger market covering the United States via channel sales • Introduction to Independent Sales Representatives 2008 – provide saturation of marketplace • 2008 number of locations grows from 10 –to- 50+

  6. 2009 – ESCO partners with Brookdale Senior Living to provide telephone, television & internet access nationwide (580+ locations) • 2009 ESCO Technologies expands and opens Network Operations Center • 2009 – ESCO becomes an ITSP with the deployment of first MetaSwitch & begins migration of all customers away from previous providers • 2010 – ESCO deploys redundant MetaSwitch, Expands NOC to 24x7x365 coverage for all products and opens ESCO II (The duce) – a state of the art quality assurance center for all staging, pre-installing and testing of CPE. • 2010/2011 – ESCO partners with Conklin-Intracom to develop a flexible IPTV product for the LTC and MDU space • 2011 – CareConnect is in use in 36 states and is the dialtone provider for an estimated 25,000 senior housing residents • April 2011 – First IPTV beta site implementation begins • (Planned 2011-2012)– ESCO introduces cell phone service engineered for seniors & care providers • (Planned 2011 – 2012) CareConnect@Home – Voice, internet and emergency call services for in-home senior.

  7. Partial Client List

  8. The CareConnect Managed Service Program

  9. What is CareConnect? • CareConnect is a managed services program that provides the essential products and services designed to make senior housing more competitive at NO COST to the community.

  10. CareConnect Mission “Our mission is to provide a fiscal value to our customers while enriching the lives of their customers.”

  11. CareConnect is a better solution • CareConnect is a single source of management for communications solutions • State of the Art Emergency Response w/campus “Bubble” Seamless Integration (wireless phones, pagers,etc.) • New digital / IP based business phone system, auto attendant and resident phones • High Speed Internet • Enhanced Satellite Television – CCTV & custom lineup • One stop comprehensive solution w/revenue sharing • NO CAPITAL OUTLAY

  12. CareConnect is staying competitive • Check In Service • Motion Management • Access Control • Wander-Management • Reminders & Notification • CCTV, Custom line up • Residential line portability …and much more

  13. CareConnect is peace of mind • One name to remember, One name to call • 24/7 service (4hrs on site, 2 hrs remote) • Nationwide installation and service (national presence w/ 2400 Certified Technicians) • Remote applications management • Risk Management • Resident number portability and move management

  14. Who is a customer? • 50 Residents or more… • Privately funded, for-profit communities • Assisted Living Facility (ALF) • Continuing Care Retirement Community (CCRC) • Independent Living (IL) • Skilled Nursing Facilities (SNF) • Senior Apartment Housing

  15. Who is NOT a good fit • 40 Residents or less… • HUD, government housing • Current client • Corporate account

  16. Intro to Senior Living2011 & Beyond We are not expecting you to be experts on technology. We are expecting you to be experts in the senior housing industry.

  17. Statistics Nationwide - Requirement • By 2026, the population of Americans ages 65 and older will double to 71.5 million • Between2007 and 2015, the number of Americans ages 85 and older is expected to increase by 40 percent • Among people turning 65 today, 69 percent will need some form of long-term care, whether in the community or in a residential care facility • By 2020, 12 million older Americans will need long-term health care ** Source: AAHSA.org American Association of Homes and for the Aging **HIAA, "A Guide to Long-Term Care Insurance", 2002

  18. Statistics Nationwide - Availability • There are 16,100 certified nursing homes in the United States (SNF) • Thereare 39,500 assisted living facilities in the United States • There are 1,900 continuing care retirement communities in the United States • There are more than 300,000 units of Section 202 affordable senior housing available in the United States • For each Section 202 affordable senior housing unit that is available, there are ten eligible seniors on waiting lists for it. The average time an eligible senior is on the waiting list is 13.4 months. Source: AAHSA.org American Association of Homes and for the Aging

  19. Statistics Nationwide – Cost Structure • The average monthly cost of living in an assisted living facility is $2,969, or $35,628 annually • The average monthly cost of living in a not-for-profit Continuing Care Retirement Community is $2,672, or $32,064 annually • The average monthly rate for assisted living facilities that charge additional fees for Alzheimer’s and dementia care is $4,270, or $51,240 annually • To move into a community, individuals must also pay an entry fee ranging from $60,000 to $120,000 Source: AAHSA.org American Association of Homes and for the Aging

  20. Statistics Nationwide 375 171 107 40 61 363 541 301 674 451 124 88 256 429 162 26 71 454 1204 354 112 345 822 690 611 567 206 44 75 340 463 98 547 4563 133 168 220 187 762 90 110 455 128 278 268 907 231 1362 • These numbers are an approximation because there is no definitive single source or database of information that houses all of the ALF, ILF & CCRC locations in the USA Source: Retirement Homes.COM, Carepathways.COM, YellowPages.COM

  21. Understanding the Industry • Philosophy of Care: Resident-centered and supports the residents decision, not government’s decision, to choose how and where a person should live. The philosophy embraces choice, independence, and the opportunity for seniors to live with dignity, respect and privacy. • Has communities or residence- not facilities • Has residents – not patients • Has personal service plans- not patient care plans • Has a front desk or wellness office- not a nurse’s station • Residents move out of their home into a place they call home- they do not get admitted or discharged

  22. Understanding the Industry • Assisted Living Facility (ALF) • Definition: • are for people needing assistance with Activities of Daily Living (ADLs) but wishing to live as independently as possible for as long as possible • are not able to live by themselves but do not require constant care either. Assisted living facilities offer help with ADLs such as eating, bathing, dressing, laundry, housekeeping, and assistance with medications. • Requirements: • Assisted living is generally for those seniors who can no longer manage on their own but whom do not need the intensive, 24-hour complex medical services of traditional long-term care. The average assisted living resident is 83 years old and requires assistance with two ADLs. • The average monthly cost of living in an assisted living facility is $2,969, or $35,628 annually

  23. Understanding the Industry • Independent  Living Facility (ILF) • Definition • Independent Living provides the greatest versatility and freedom. Independent Living for seniors refers to residence in a compact, easy-to-maintain, private apartment or house within a community of seniors. Any housing arrangement designed exclusively for seniors (generally those age 55+; in some cases the age requirement is 62+) may be classified as an Independent Living community. • Independent Living for seniors is also known as: • Retirement Communities, Retirement Homes, Senior Apartments , Senior Housing, Independent Living Communities. • As the name implies, Independent Living is just that: the ability to maintain one's residence and lifestyle without custodial or medical assistance. If custodial or medical care becomes necessary, residents in Independent Living for seniors are permitted to bring in outside services of their choice The Glenmary at Evergreen, Memphis TN

  24. Understanding the Industry • Continuing Care Retirement Facility (CCRC) • Definition • A continuing care retirement community (CCRC) offers residents a full spectrum of care from • independent living apartments or villas , assisted living, long-term care • Many also offer short-term rehab services and specialized Alzheimer’s care • The average age of an individual moving into a continuing care retirement community is 78 • The average monthly cost of living in a not-for-profit Continuing Care Retirement Community is $2,672, or $32,064 annually •  A CCRC offers residents peace of mind in knowing that whatever level of care they may need in the future, it is available to them. These communities are also referred to as retirement villages.   • As residents begin to age and need more care and assistance, they move through the levels of care the CCRC offers without having to shop for care with each change in health condition. They know the community and the staff and that makes the transitions easier Otterbein Retirement Living Community, Lebanon OH

  25. Facilities May Provide **Activities of Daily Living Source: MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs

  26. MetLife Market Survey 14% 64% 22% Source: MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs

  27. MetLife Market Survey 14% 64% 22% • Our Managed Service Program can help an owner charge up to $700 more on a monthly basis by increasing the number of services that their community provides. Source: MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs

  28. Only 13% of Communities Are Inclusive • Most don’t know where to begin • No capital. This requires significant capital investment • Bad past experience • Knew someone with bad past experience • Do not want to be telephone company • Scared of change, satisfied with status quo • Don’t want to lose on a prior investment • Some already provide these services

  29. Partnering w/CC Accomplishes Phone / TV / Internet / One Relationship!

  30. Partnering w/CareConnect Gives Our Clients a Competitive Edge • More affordable rates on phone/TV/Internet – 30-40% off list • One Stop Shop array of services • More choices / options • Cutting edge / state-of-the-art upgrades • Enhanced security and care via the wireless “bubble” • More convenience for residents, facility and families • Our core focus is senior housing • No large upfront investment in capital and time • Helps to increase occupancy

  31. Partnering w/CareConnect Provides Essential Services for Operator & Residents • Emergency Response Strategy (aka eCall, Nurse Call, disaster notification) • Modern business phone system, auto attendant, long distance • Residential phones and service • Flexible TV Service, maintenance, emergency service, in house channel • Internet capabilities – facilities, residents and visitors

  32. Who are our competitors? • CareConnect is unique in that we are the ONLY company that provides a managed services complete solution for the senior housing industry • Other companies/vendors provide the individual products for purchase or will service ad-hoc • We have NO competition for our SOLUTION, only competitors for the individual products

  33. Who are our competitors? • Business Phone System • Cisco, Aveya, Nortel • Business Phone Service • Embarq, ‘Bell’ Companies, Verizon, Sprint, local telco’s • Internet Service • Vonage, Embarq, ‘Bell’ Companies, Verizon, Sprint, local telco’s • Television Service • Any local cable company • Cox Communications, Time Warner, Comcast, Charter Communications, Brighthouse, Senior TV, Direct TV • Emergency Response System (ERS, Nursecall, eCall) • Senior Technologies, Vigil, Status Solutions, Systems Technologies, Phillips

  34. Who are our REAL competitors? We do not sell against other vendors…. We sell against STATUS QUO!!!

  35. Product Modules of CareConnect

  36. CareConnect Television • $25k-$60k savings in install, labor, & maintenance over time • A Television experience for the resident of today & tomorrow! • Provided by Dish Network • Facility chooses 72 channels from a menu of 150 • Facility chooses their placement on the spectrum • CCTV In-House Channel is provided and very popular • No set-top box required for basic 73 channel line-up • Residents can upgrade and are billed separately by ESCO • countless packages with hundreds of channel options • HD & DVR service available • premium channels are added at list price

  37. The 5 CareConnect Managed Service Components • $15k-$300k savings in install, labor, & maintenance over time • Fully Hosted & Monitored Business & Residential Telephone package • Hosted model with premise-based equipment on site • Feature rich business package with auto attendant & more! • Extension dialing resort style experience available • Unlimited business and residential long distance • International calling at $.06 per minute • System integrates with existing residential phone • ESCO facilitates number portability • Comprehensive features such as: • Caller ID • Call Waiting • Voicemail • Call Forwarding • and more…

  38. The CareConnect Managed Service Components $5k-$20k savings in install, labor, & maintenance over time DSL speed/quality delivered over hard lines to each apt 1.5 mbps down, 768k up down and is scalable for residents with a greater demand for bandwidth. WIFI hotspots, wired in room Residents can take advantage at any time

  39. The CareConnect Managed Service Components • $75k-$300k savings in install, labor, & maintenance over time • Inovonics based SARA from Status Solutions • Wireless nurse call system install includes • Server, Repeaters, Remote Console, Devices • Voice to text, email, phone, pager, intercom, 2-way radios • Automated, on demand reporting • Wireless pendants work campus-wide • Can fully integrate with existing systems and devices • Notifications can be set – calendar, activities, weather, etc. • Reminders can be set – medicine, activities, holidays, etc. • Environmental monitoring – gate, freezer, server room, etc • Software upgrades are included

  40. What Sets CareConnect ERS Apart From the Rest? • Locations are set via “fingerprinting” and can pinpoint locations (ex: north end of 2nd floor hall, 2nd floor elevator bank, etc…) • Voice to text, email, text, pager, two way radios can all be utilized • Can fully integrate with existing devices and infrastructure • Notifications can be sent to any devices – weather/calendar/staff/etc • Reminders can be sent as well – activities/holidays/medicine/etc • Environmental monitoring

  41. Nurse Call Enhancements Monitored Devices Alert Devices Business Phones PC & email Pull Cords Plunger Station Pendant Cell phone for calls or text messaging Motion Detector Door Transmitter 2-way radio Pager Intercom Environmental Monitoring

  42. Monitored Devices – Pull Station • Available both with and without Check-in button, our pull station provides reliable and flexible notification services. The wireless design enables it to easily meet the needs of many environments without cabling. The Pull Station can be easily relocated when needs change, without resorting to a major construction project.

  43. Monitored Devices – Wireless Pendent • Lightweight and water resistant, a wireless pendant can be worn as a necklace, on the wrist or on a belt clip. These devices are designed to give residents full mobility. When used, the care staff is immediately notified of the resident’s name and current location.

  44. Monitored Devices – Wireless Motion Detector • A passive infrared motion detector that can be mounted on a wall in each apartment. When the detector senses motion, it logs that resident as having checked in for the day while also acting as an intrusion alarm, alerting the staff of any suspicious activity while a resident is away.

  45. Monitored Devices – Wireless Door Sensor • Door alarm sensors protect residents from unwanted and dangerous intruders while also providing information to care staff regarding resident activity.

  46. Case Study - The CareConnect difference on a smaller scale NaviGroup NaviGroup has been a family owned provider of assisted living since 1948. They currently operate in 3 states serving the needs of over 250 seniors. “CareConnect provided a turn-key communication/emergency-call system that became a revenue generator – all with zero upfront investment!” -Christopher C. Randall, CEO NaviGroup

  47. Case Study - The CareConnect difference on a larger scale Otterbein Retirement Communities Otterbein Retirement Communities has been operating senior living facilities since 1912. They currently have 5 properties and over 800+ residents. Otterbein’s new model of nursing care is the first of its kind in the Midwest. “For over a year, we had been researching ways to replace our aging infrastructure. Every solution, except one, required a significant capital cost. ESCO delivered the solution with their Care Connect product. ESCO delivers - equipment, technology & service!" -Lynette Jagels, Otterbein Retirement Living Communities