April 20th 2007

Pendulum HealthCare Development Corporation management team has worked with a variety of health plans and physician networks in startup and turnaround situations.
Our goal is to revitalize interest in local delivery system transformation by helping physicians’ design risk and incentive plans that reimburse doctors based on quality outcomes not just the number of patients seen. We firmly believe employers have options at the local level to improve both quality and access to affordable care through collective action and direct contracting with physicians.

Performance management system and incentives
This is accomplished through a sophisticated medical management system tied to a powerful marketing capability that balances growth with care improvement. The system moves away from traditional utilization review and the expectation of cost management through manipulation of price and volume but rather works toward measuring success
of care delivered in terms of actual outcomes. Both physicians and hospital databanks are used to help physicians to link evidence based care to rewards that benefit the patient and the employer. (With the interest in employers increasing deductibles and coinsurance, patients and employers are interested in making sure they are able to identify the best Doctors that offer the most value in terms of efficiency and effective care, not just the cheapest Doctors.)


Management Team
The management team consists of all 20 plus year veterans in their respective roles and share a common vision of supporting growth of investor owned, physician driven entities.

William J DeMarco MA CMC has assisted a broad variety of Health Plan and Physician network clients over his 25 years as a health plan executive and consultant.

Bills success in guiding the efforts of a number of successful community based health plans along with his work in helping hospitals and physicians optimize their relationship with payors has given him a unique set of capabilities in product design, quality measurement and organizational start up and development.

Mike LoCascio is the Chief Technology Officer for Pendulum. Mikes orginal experience as a process re-engineering expert with Motorola contributed to Motorola being the first manufacturer to ever receive the Malcolm Baldridge Award for excellence.

Starting his own IT firm in the late 80’s, Mike served the needs of a broad variety of clients including TPAs, Insurers and providers and government. His interest in health care led to his joining Pendulum where he has constructed a research and development framework in an open source environment.

Using standard object applications PHDC can custom design small and large scale data warehouses with connecting tools for query and reporting that requires no licensure and is able grow or contract dependant upon the clients needs.

Dr. Martin Blume - is Principal Medical Advisor to PHDC and has worked as Medical Director and consultant to several DeMarco and Associates projects. He was the lead developer of several PHOs and IPAs in the southwest.

His experience as a medical director of health plans in Arizona and New Mexico has allowed him the opportunity to help build the next generation of Primary care practices through network and MSO development. See Medical Management

PHDC brings a stability of management and decision making based upon these and other staff of the company. The background and sensitivity in working with physicians and understanding of the community goals plays a key role in our success as a management company operating health plans and medical networks on behalf of physicians and investors.

In some states this direct contracting is seen as doing the business of an insurance company and a license may be required. PHDC has been involved with both state and federal Medicare licenses in over 30 states and has the regulatory capacity to apply and manage this process for clients.

In many states this performance based contracting can be accomplished without license restrictions and can help providers to move away from capitation into clinical integration strategies that met or exceed the employer’s expectations as purchaser of care.

HSS has unveiled their value based purchased program that requires employers, physicians and hospitals to collaborate based upon 4 pillars of foundation.

PHDC is equipped to be the independent linkage and information platform to exchange data, measure benchmarks, construct linkages with a variety of regional care givers and payers. This is all done with NO SOFTWARE License as PHDC functions on an Open Source system ( see PATHSC for technology overview)

Pendulum has acquired several tools for provider profiling and benchmarking and is currently purchasing the health care division of a regional IT company that will further expand the company into benchmarking consortium management, integration into other vendor’s products and building and hosting clinical databases for our clients.

We see PHDC as a platform for physicians and employers to create community based care plans that serve very specific populations and by sharing overhead and expense with other PHDC entities physicians and hospitals and employers receive the top level clinical performance information and administration of the infrastructure at minimal cost

Please contact me directly for further information.

W.J DeMarco, MA CMC
President and CEO
Pendulum HealthCare Development Corporation