<PAGE> 1
Filed by: Healtheon/WebMD Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: OnHealth Network Company
Commission File No.: 000-22212
THIS COMMUNICATION IS FILED PURSUANT TO RULES 165 AND 425 PROMULGATED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. INVESTORS ARE URGED TO READ THE VARIOUS
FILINGS OF HEALTHEON/WEBMD CORPORATION AND ONHEALTH NETWORK COMPANY WITH THE
SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE PROXY STATEMENT/REGISTRATION
STATEMENT THAT IS REQUIRED TO BE FILED WITH RESPECT TO THE TRANSACTION DESCRIBED
BELOW PRIOR TO THE VOTE OF THE SHAREHOLDERS OF ONHEALTH NETWORK COMPANY AND THE
ISSUANCE OF THE COMMON STOCK OF HEALTHEON/WEBMD CORPORATION IN THE MERGER.
<PAGE> 2
This communication is filed pursuant to Rules 165 and 425 promulgated under the
Securities Act of 1933, as amended. Investors are urged to read the various
filings of Healtheon/WebMD Corporation, OnHealth Network Company, Medical
Manager Corporation and CareInsite, Inc. that have been filed with the
Securities and Exchange Commission including the proxy statement/registration
statements that are required to be filed with respect to the transactions
described in the following presentation prior to the vote of the shareholders of
the respective companies and the issuance of the common stock of Healtheon/WebMD
Corporation in the mergers.
<PAGE> 3
[PHOTO]
[Careinsite Logo] [The Medical Manager Logo(R)]
[PHOTO] [PHOTO]
[onhealth.com Logo]
Connecting the
Global Healthcare [PHOTO] [PHOTO]
Marketplace
[Healtheon(TM)/WebMD(SM) LOGO]
<PAGE> 4
MISSION
[Healtheon/WebMD Logo]
[Globe]
Connecting and empowering
individuals for more efficient,
affordable and better healthcare
World-Class Partnerships
Superior Technology
and
Connectivity
Comprehensive,
Credible
Content
Leading
E-Health Brand
Awareness
Extensive/
Exclusive
Distribution
<PAGE> 5
OUR ECONOMY'S LARGEST SECTOR --
SIGNIFICANT IMPROVEMENT OPPORTUNITIES
[Chart showing projected
growth from $1.2 trillion
in 1999 to $1.6 trillion
in 2004]
- $280+ B
administrative
waste and
redundant/
unnecessary
procedures
- 30+ B
transactions/
year - mainly
paper-based
- Fragmentation
- Information not
readily available
Source: HFCA
<PAGE> 6
MUCH PRESSURE TO CHANGE HEALTHCARE
[Photo] [Photo]
PROVIDERS CONSUMERS
Desiring less Demanding better
administrative service, more
burden, greater information, and
autonomy, faster greater convenience
payments, and
greater incomes
[Photo]
HEALTHCARE
INDUSTRY
Striving to reduce costs
and enhance provider
and patient experience
<PAGE> 7
THE SOLUTION...
[Healtheon(TM)/WebMD(SM) Logo]
[arrow pointing down]
www.webmd.com
[arrow pointing up] [arrow pointing up] [arrow pointing up]
[Careinsite Logo] [The Medical Manager(R) Logo] [onhealth.com Logo]
<PAGE> 8
OUR CUSTOMERS...
[WebMD Web Page]
<PAGE> 9
BUSINESS MODEL SUMMARY: DIVERSE RECURRING REVENUES
Provider Portal
[Screen Shot]
Aggregate
physicians and
consumers
[Healtheon(TM) WebMD(SM) Logo]
[bi-directional arrows connect
this logo to the items in the
left hand column]
Consumer Portal
[Screen Shot]
www.webmd.com
<PAGE> 10
BUSINESS MODEL SUMMARY: DIVERSE RECURRING REVENUES
Form leading partner-
ships that deliver value
<TABLE>
<S> <C> <C>
[Artwork]
Provider Portal - Connectivity Payors
[Screen Shot] - Transaction facilitation
- Information
- Applications
Labs
Consumer Portal [Healtheon(TM)/WebMD(SM) Logo]
[Screen Shot] [bi-directional arrows Pharmacies
connect this Logo to the items
in the left hand column IDNs/
and right hand column] Hospitals
www.webmd.com Other
Partners
(e.g., e-
commerce)
</TABLE>
<PAGE> 11
BUSINESS MODEL SUMMARY: DIVERSE RECURRING REVENUES
Provider Portal Monetize through
[Screen Shot] - Transactions
- Subscriptions
Consumer Portal - Advertising/sponsorships
[Screen Shot] - E-commerce
www.webmd.com
[Healtheon(TM)/WebMD(SM) Logo] Payors
[bi-directional arrows Labs
connect this Logo to Pharmacies
the items in the left IDNs / Hospitals
hand column and the Other Partners
right hand column] [e.g., e-commerce]
<PAGE> 12
FORRESTER FORECASTS THAT E-HEALTH
WILL REACH $370 BILLION BY 2004
$ Billions
<TABLE>
<CAPTION>
<S> <C>
Forecast
1999 6.4
2000 16.0
2001 37.0
2002 87.0
2003 190.0
2004 370.0
</TABLE>
Represents less
than 25% of 2004
healthcare
expenditures
Source: Forrester Research, Inc. (12/99)
<PAGE> 13
FORRESTER FORECASTS THAT E-HEALTH
WILL REACH $370 BILLION BY 2004
$ Billions
<TABLE>
<CAPTION>
<S> <C>
Forecast
1999 6.0
2000 15.0
2001 35.0
2002 81.0
2003 178.0
2004 348.0
</TABLE>
B-2-B e-health is
expected to reach
$348 B by 2004
- - Administrative/
clinical
transactions:
$224 B
- - Drugs, supplies:
$124 B
Source: Forrester Research, Inc. (12/99)
<PAGE> 14
FORRESTER FORECASTS THAT E-HEALTH
WILL REACH $370 BILLION BY 2004
$ Billions
<TABLE>
<CAPTION>
<S> <C>
Forecast
1999 0.4
2000 1.0
2001 2.2
2002 4.9
2003 11.0
2004 22.0
</TABLE>
B-2-C e-health is
expected to reach
$22 B by 2004
- - Rx: $15 B
- - Neutraceuticals: $3-4 B
- - OTC: -$2 B
Source: Forrester Research, Inc. (12/99)
<PAGE> 15
DELIVERING ON THE VISION: KEY SUCCESS FACTORS
[ARROW] PARTNERSHIPS
<PAGE> 16
WORLD-CLASS PARTNERSHIPS
<TABLE>
<S> <C> <C> <C> <C> <C>
[Quintiles [IDX(TM) [Medtronic [medibuy.com [CVS [Humana
Transnational Logo] Logo] Logo] Logo] Logo]
Logo]
[Tricare [Coventry [SB [Du Pont(R) [CNN [Covad
Logo] Health Care SmithKline Logo] Logo] Logo]
Logo] Beecham
Logo]
[Dell [Tenet [Healtheon(TM)/ [HNC [excite
Logo] Logo] WebMD(SM) Software Logo]
Logo] Logo]
[Lycos Intel(R) [American [UnitedHealthcare(R)
Logo] Logo] College of Logo]
Cardiology
Logo]
[Merck-Medco [Beech Street [MedQuist(R) [Microsoft [Healthsouth [Reader's Digest
Managed Care, Corporation Logo] Logo] Logo] Logo]
L.L.C. Logo]
Logo]
[Soft Bank [EDS [Lilly [News [Yahoo! [Brown &
Logo] Logo] Logo] Corporation Logo] Toland
Logo] Medical Group
Logo]
</TABLE>
<PAGE> 17
DELIVERING ON THE VISION: KEY SUCCESS FACTORS
[Arrow] CONNECTIVITY
<PAGE> 18
CONNECTING AND ENABLING THE END-TO-END VALUE CHAIN
Provider Portal Payors
[Screen Shot] Data
Gateway
Applications
[arrow connects this Labs
to graphic of
e-Commerce computer terminals]
Transactions
[bi-directional [graphic:
Consumer Portal arrow connects computer terminals] Pharmacies
[Screen Shot] these words to
items in the [lines connect this
left hand graphic to the items
column] in the right hand column]
IDNs/
Secure, Hospitals
Integrated
Transaction
Platform Other
www.webmd.com Partners
(e.g., e-
commerce)
Content
<PAGE> 19
HEALTHEON/WEBMD CONNECTIVITY
<TABLE>
<CAPTION>
PROVIDERS CONSUMERS
<S> <C> <C> <C>
Physicians 400,000+ Unique visitors 7 MM/month
Subscribers 80,000+ Communities 90
Dentists 47,000+ Members 1 MM
</TABLE>
<TABLE>
<CAPTION>
HEALTHCARE INDUSTRY
<S> <C>
Pharmacies 46,000+
Hospitals 4,500+
Payors 900+
Labs Every major lab
</TABLE>
<PAGE> 20
DELIVERING ON THE VISION: KEY SUCCESS FACTORS
[Arrow] CONTENT
<PAGE> 21
SIGNIFICANT CONTENT RESOURCES
[PHOTO] - Unique, Industry-leading news
center:
[WebMD Logo] - 100+ editorial staff members,
including over 30 MD's
- Syndicated content
- Scalable outside the US
- Authoritative references and texts
- Research databases
- Directories
- Relationships with most
authoritative names in medicine
<PAGE> 22
DELIVERING ON THE VISION: KEY SUCCESS FACTORS
[Arrow] DISTRIBUTION
<PAGE> 23
BROAD AND DEEP DISTRIBUTION
UTILIZING MULTIPLE CHANNELS
[Healtheon(TM)/WebMD(TM), Careinsite, The Medical Manager(R) Logos]
Direct
Sales
[arrows connect these words to the other items]
Target
customers
Channel
Partners
[InfoCure(TM), medic computer systems, IDX(TM) Logos]
On-line
Channels
[Yahoo!., Lycos, excite, msn(TM) Microsoft(R), CBS SportsLine, MSN NBC Logos]
<PAGE> 24
DIRECT SALES FORCE DRIVES PHYSICIAN SALES AND
CONNECTIVITY...
100% = 2,900 Direct Sales and Deployment Professionals*
<TABLE>
<S> <C>
Internal Support/Customer Service 65%
Physician Practice Sales 20%
Institutional Sales 15%
- Healthcare Systems
- Payors
- Labs
- Rx
- Government
</TABLE>
* Includes 1,300 VARs
<PAGE> 25
CHANNEL PARTNERS FURTHER DRIVE PHYSICIANS SALES
AND CONNECTIVITY
[Healtheon(TM)/WebMD(SM) LOGO]
PMS SYSTEMS
- - Medic
- - IDX
- - Infocure
- - 200+ others
IDNs
- - TENET
- - HealthSouth
Health Plans
- - UHC
Consultants
- - Superior
- - First
Brokers
- - Buck
- - AOB
[dotted lines connect these
items to each other and to the
Healtheon/WebMD logo]
<PAGE> 26
EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION
AGGREGATES CONSUMERS
[WebMD screen shot showing link to MSN health page]
<PAGE> 27
EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION
AGGREGATES CONSUMERS
[MSN health page screen shot showing link to Lycos]
<PAGE> 28
EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION
AGGREGATES CONSUMERS
[Lycos screen shot showing link to cnn.com]
<PAGE> 29
EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION
AGGREGATES CONSUMERS
[cnn.com screen shot showing link to webtv.com]
<PAGE> 30
EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION
AGGREGATES CONSUMERS
[webtv.com screen shot showing link to excite.com]
<PAGE> 31
EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION
AGGREGATES CONSUMERS
[[Excite(SM) Logo] Health Web Page screen shot]
<PAGE> 32
DELIVERING ON THE VISION: KEY SUCCESS FACTORS
[Arrow] BRAND
<PAGE> 33
BUILDING LEADING E-HEALTH BRAND THROUGH UBIQUITY
Global Portal
[WebMD(SM).com Logo]
Network Television
[News Corporation Logo]
Cable Television
[CNN Logo]
Print
[Reader's Digest Logo]
Health Cable Channel
[WebMD(SM) Television Logo]
Instore
[CVS/pharmacy Logo]
[The Sports Authority Logo]
On-line
[Yahoo! Logo] [Lycos Logo] [Excite Logo]
[MSN(TM) Microsoft Logo] [CBS Sportsline Logo] [MSN NBC Logo]
[dotted lines connect these
items to each other and to
the WebMD Logo]
<PAGE> 34
DRIVING GLOBAL HEALTH THROUGH BRAND AND CONVERGENCE
[News Corporation Logo] - Drive awareness of therapeutic categories with mass
media
- Breast cancer, heart disease, diabetes, depression
[WebMD(SM) Television Logo] - Build knowledge of categories with authoritative,
compelling programming
- Breaking news, WebMD Live, Ask the Experts
[WebMD(SM).com Logo] - Drive individual specific knowledge, action with
contextual content, communities, and connectivity
- Dr. Ornish channel, communities (heart disease)
<PAGE> 35
[Video Clip]
[Showing WebMD Logo and News Corporation Logo]
<PAGE> 36
[The [Healtheon(TM)/
[Careinsite logo] + Medical + WebMD(SM) logo]
Manager(R) logo]
Overview
<PAGE> 37
TRANSACTION OVERVIEW
[The [Healtheon(TM) logo/
WebMD(SM) logo]
[Careinsite logo] Medical
Manager(R) logo]
- - Healtheon/WebMD to acquire outstanding primary shares of Medical Manager and
CareInsite for 95 million H/W shares
-- 1.65 H/W shares for each share of MM (64 MM total)
-- 1.30 H/W shares for each share of Ci (31 MM total)
- - No cash involved -- combined cash position exceeds $1.5 billion today
- - Subject to regulatory and shareholder approval
- - Expect to close by mid-year
<PAGE> 38
MANAGEMENT AND BOARD
Management...
- - Mike Long - Co-Chairman and Chief Operating Officer
- - Marty Wygod - Co-Chairman
- - Jeff Arnold - CEO Healtheon/WebMD
- - Mickey Singer - CEO Medical Manager Health Systems
Board...
- - Three Medical Manager board members to join Healtheon/WebMD
<PAGE> 39
COMPLEMENTARY STRENGTHS
[Careinsite Logo] [The
Medical [Healtheon(TM)/
Manager(R) Logo] WebMD(SM) Logo]
- - Clinical applications - Physician installed - Leading consumer
- - PMS integration base (185,000)* and physician portals
- - NE market presence - Distribution network - Partnerships
(Blue Cross of Mass) (2,500 sales force- - Connectivity
- - Extensive payer 190 offices)* - Content
relationships - Local support - Distribution
- - AOL relationship infrastructure - Brand
- ---------------------
* After giving effect to Medical
Manager's pending acquisition of
Physician Computer Network
<PAGE> 40
KEY BENEFITS OF THE MERGER
Physician adoption
- - 185,000 physicians*
- - Additional 2,500 sales people, 190 offices*
- - Installation and utilization support
Transaction growth
- - Tight integration with PMS
- - Part of office work flow
Strong payer value proposition
- - Payer-specific care management guidelines
- - Shared savings approach
Product enhancement
- - PMS Integration
- - Clinical enhancements
- - Consumer-physician transactions
- - Integration with Cerner systems (1,000 institutions)
Execution capabilities
- - Top management talent
- - Operations expertise
- - Local deployment and support
- ---------------------
* After giving effect to Medical
Manager's pending acquisition of
Physician Computer Network
<PAGE> 41
INTEGRATED PROFESSIONAL PORTAL
- - Content
- - E-Commerce
- - Communications [Screen Shot]
- - Practice management transactions
- Scheduling
- Charge capture and billing
- Demographics
- Eligibility
- Referrals and authorizations
- Claims submission/remittance
- - Clinical transactions
- Patient medical record
- Lab orders/results
- Prescriptions and renewals www.webmd.com
- Payer rules and best practice guidelines
- - Connectivity with labs, payers,
pharmacies and hospital systems
<PAGE> 42
INTEGRATED CONSUMER PORTAL
- -Content [Screen Shot] [Screen Shot]
- -E-commerce WebMDHealthYourHealthPlan www.webmd.com
- -Communications
- -Personal health record
- -Consumer - physician transactions
-Scheduling appt
-Bill status
-Refill request
-Lab results Your Health Plan's co-
branded web page
- -Consumer - payer transactions @webmd.com
-Enrollment/re-enrollment
-Benefits coverage, co-pay,
deductible inquiries
-Physician referral/PCP assignment
-Claim status [Screen Shot]
Your Physician's co-
- -Connectivity with payer, physician, branded web page
pharmacy @webmd.com
<PAGE> 43
SUCCESS METRICS
Timely development [Arrow pointing to right] Domain and
and deployment engineering
proficiency
Growth of consumers, [Arrow pointing to right] Market
physicians, and institutions penetration
Growth of connectivity, [Arrow pointing to right]
page views, and Industry
communities adoptions
Transaction growth,
subscriptions, advertising, [Arrow pointing to right] Revenue
growth
<PAGE> 44
HEALTHEON/WEBMD: UNIQUE VALUE PROPOSITION
- Enormous market opportunity
- Leading partnerships
- Superior technology and connectivity
- Comprehensive content
- Extensive and exclusive distribution
- Rapidly increasing brand awareness
- Diversified, recurring revenue model
- Management with history of success
<PAGE> 45
[Healtheon(TM) | WebMD(SM) logo] + [onhealth.com logo]
Overview
<PAGE> 46
TRANSACTION OVERVIEW
[Healtheon(TM) | WebMD(SM) logo] [onhealth.com logo]
- - Healtheon / WebMD to acquire Onhealth.com for 4.6 million
primary shares (accounted for as purchase transaction)
- .1894 shares of Healtheon / WebMD for each share of Onhealth
- - Subject to regulatory approval
- - Expected to close by mid-year
<PAGE> 47
COMPLEMENTARY STRENGTHS
<TABLE>
<CAPTION>
[onhealth.com logo] [Healtheon(TM) | WebMD(SM) logo]
<S> <C>
- - Leading consumer traffic - Leading branded physician
with attractive and consumer portals
demographics - Leading news, disease and
- - Wellness-focused therapy programming and
programming and communities
community expertise - Over $300 million in
- - Over 100 advertisers and e- sponsorship revenue
commerce expertise commitments from industry
- - Strong, complementary on- leading partnerships
line distribution (e.g., Exclusive on-line and off-line
Hotmail) distribution
- Connectivity across the value
chain, enabling physician and
consumer services
</TABLE>
<PAGE> 48
HEALTHEON / WEBMD - ONHEALTH: WHAT IT MEANS
[onhealth.com logo] [Healtheon(TM) | WebMD(SM) logo]
- - Solidify position as the most trafficked health site for consumers
- #1 in health, among top 25 sites overall
- 90% of combined audience is unduplicated
- 90 communities with over 1,000,000 members
- - Accelerate adoption by physicians and consumers of planned healthcare
services
- Appointment scheduling
- Prescription refills
- - Increase value to existing and potential partners by connecting them to a
larger consumer base
<PAGE> 49
TRANSACTION OVERVIEW
- Healtheon/WebMD to acquire outstanding primary shares of:
- Medical Manager and Care Insite for 95 MM H/W shares
- OnHealth.com for 5 Million H/W shares
<TABLE>
<CAPTION>
Combined
H/W MM Ci OH Pro-forma
--- -- -- -- ---------
<S> <C> <C> <C> <C> <C>
Primary Shares 237 64 31 5 337
Option/warrants 71 28 15 1 115
--- -- -- -- ---
Fully-converted shares 311 92 46 6 452
Ownership of Newco 68% 21% 10% 1% 100%
</TABLE>
- No cash involved in MM and Ci transaction -- combined cash
position exceeds $1.5 billion
<PAGE> 50
Financial Overview
<PAGE> 51
SUCCESS METRICS
Timely development [Arrow pointing right] Domain and
and deployment engineering proficiency
Growth of consumers, [Arrow pointing right] Market penetration
physicians, and institutions
Growth of connectivity, [Arrow pointing right] Industry adoptions
page views, and
communities
Transaction growth, [Arrow pointing right] Revenue growth
subscriptions, advertising,
and e-commerce
<PAGE> 52
PAGE VIEWS PER QUARTER (Millions)
<TABLE>
<S> <C>
3Q99 47 Million
4Q99 78 Million
Jan 2000 (Quarterly Run Rate) 100 Million
</TABLE>
<PAGE> 53
PROFESSIONAL SUBSCRIPTIONS
<TABLE>
<S> <C> <C>
3Q99 EOP 43,000
Physicians 55,000
4Q99 EOP 67,000
Physicians 88,000
Jan 31 2000 78,000
Physicians 102,000
</TABLE>
<PAGE> 54
CONSUMER UTILIZATION (End of period)
<TABLE>
<CAPTION>
3Q-4Q
3Q 99 4Q 99 % Change Jan 2000
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Unique Users 0.7 Mil. 1.7 Mil. +141% 2.2 Mil.
Total Page Views 48 78 +63% 100
(In Millions)
Community Members 453 704 +55% 855
(In 000s)
H/C Communities 46 57 +24% 58
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 55
REVENUE BREAKOUT - TREND/TARGET
<TABLE>
<CAPTION>
Through Long-term
3Q99 4Q99 Target
------- ---- ---------
<S> <C> <C> <C>
Transactions 55% 55% 50%
Subscriptions 5% 10% 10%
Advertising 5% 13% 20%
Other/E-Commerce 35% 22% 20%
--- --- ---
Total 100% 100% 100%
Interest share 29% 35%
</TABLE>
<PAGE> 56
REVENUE SOURCES FROM PHYSICIAN OFFICES
Transactions - Claims
- Referrals/Authorizations
- Eligibility
- Claims Status Inquiry
- Reports
- Lab Order/Results
- Prescriptions
Upsale Services - Transcription
- Messaging/Receptionist
- Fraud and Abuse Audits
- DSL connections
- Physician Staffing
Other Services - Supplies
- Travel Services
- Investment Transactions
<PAGE> 57
PHYSICIAN REVENUE OPPORTUNITIES ($ per physician)
<TABLE>
<S> <C>
Transactions $ 9,000
Subscriptions 350
Upsale Services 3,000
-------
TOTAL $12,350
</TABLE>
<PAGE> 58
1999 QUARTERLY RESULTS (Millions)
<TABLE>
<CAPTION>
1Q99 2Q99 3Q99 4Q99
------ ------ ------ ------
<S> <C> <C> <C> <C>
Revenues $ 17.6 $ 22.7 $ 28.6 $ 33.2
Cost of operations 15.5 17.9 20.3 34.8
Development and 7.1 7.2 6.6 8.7
engineering
Sales and marketing 4.6 5.7 8.3 35.9
General and 4.3 5.2 5.8 12.4
administrative
Less noncash charges -- -- -- (9.3)
------ ------ ------ ------
EBITDA $(13.9) $(13.3) $(12.4) $(49.3)
</TABLE>
<PAGE> 59
4Q 99 REVENUE ($ Millions)
<TABLE>
<CAPTION>
$33 Million $47 Million $55 Million
<S> <C> <C> <C>
100
75
50
25
0
As Reported Proforma Proforma
4 Companies 4 Companies
plus Closed Deals
Kinetra and
News Corp
</TABLE>
<PAGE> 60
INCOME STATEMENT -- TREND/TARGET
<TABLE>
<CAPTION>
Target
------
<S> <C>
Revenues 100%
Cost of operations 40%
Development and engineering 15%
Sales and marketing 15-20%
General and administrative 5-10%
- -------------------------- ------
EBITDA 20-25%
</TABLE>
<PAGE> 61
HEALTHEON / WEBMD: UNIQUE VALUE PROPOSITION
- Enormous market opportunity
- Leading partnerships
- Superior technology and connectivity
- Comprehensive content
- Extensive and exclusive distribution
- Rapidly increasing brand awareness
- Diversified, recurring revenue model
- World-class management team and Board of Directors
<PAGE> 62
[photo]
Connecting the
Global Healthcare [photo] [photo]
Marketplace
[photo] [photo]
[Healtheon (TM)/
WebMD (SM) logo]
<PAGE> 63
Case Studies
Recent Partnerships
and New Customers
<PAGE> 64
HEALTHEON / WEBMD - ENVOY / QUINTILES: OVERVIEW
[ENVOY LOGO] + [QUINTILES LOGO]
Acquire Envoy (transaction HLTH to develop and jointly
processing business) for: market web-based products
- - 35 million HLTH shares and services for pharma
- - $400 million cash industry for Quintiles
- -$100 million revenues
Healtheon / WebMD to for development over
receive warrants to purchase next 18 months
10 million common shares at - Revenue sharing for
$40 over 4 years new products (begin
in mid 2002)
<PAGE> 65
HEALTHEON / WEBMD - ENVOY / QUINTILES: OVERVIEW
[ENVOY LOGO] + [QUINTILES LOGO]
- - Achieve critical mass of connectivity
- - Ensure defensible back-end connections
- - Ensure quality and security of service
- - Attain dramatic transaction revenue growth
- - Create strong value proposition to
pharma globally
<PAGE> 66
HEALTHEON / WEBMD - IDX: OVERVIEW
[Healtheon(TM)/WebMD(SM) logo] [IDX(TM) LOGO]
- - Exclusive provider of electronic transactions to IDX's
118,000 physicians (transaction revenues)
- - Integrate WebMD's content, transactions and
e-commerce services into Channel Health portal as
co-branded offering
- - Jointly develop prescription application (transaction
and subscription revenues)
- - Equity exchange with Channel Health (stock for stock)
worth $18MM for 3% stake
<PAGE> 67
HEALTHEON / WEBMD - IDX: OVERVIEW
[HEALTHEON(TM)/WebMD(SM) Logo] [IDX (TM) Logo]
- Accelerate physician market penetration
- Penetrate large group / academic market
- Increase value delivered to physicians
- Grow transaction revenues
<PAGE> 68
HEALTHEON / WEBMD -- CVS: OVERVIEW
[Healtheon(TM)/WebMD(SM) LOGO] [CVS/pharmacy LOGO]
-- 50+ million transactions/year
-- Growth -- WebMD preferred transaction provider
-- E-commerce revenues
-- Share of all nonprescription sales from CVS sites and WebMD
health properties (e.g., Lycos, Excite, MSN)
-- Click through fees for all click throughs
-- From WebMD health properties
-- Regardless of purchase
-- Advertising/sponsorships
-- 100% on WebMD properties
-- Share on CVS co-branded sites
-- Mutually exclusive online
<PAGE> 69
HEALTHEON/WEBMD - CVS: OVERVIEW
[Healtheon(TM)/WebMD(SM) LOGO] [CVS/pharmacy LOGO]
- Provide end-to-end Rx service
- Drive consumer e-commerce revenues
- Drive transaction revenues
- Accelerate branding
- Improve service and quality of care
for consumers
<PAGE> 70
HEALTHEON / WEBMD - HUMANA: OVERVIEW
[Healtheon(TM) | WebMD(SM) Logo] [Humana(R) Logo]
- WebMD to provide transactions, content,
portal, and marketing solutions
- Professional and consumer transactions
(e.g., eligibility, claim status, reimbursement, referrals)
- Content through professional and consumer portals
- Online and offline media assets
- Humana will offer WebMD Practice to its
330,000 physicians
- Subscription fees underwritten by WebMD sponsors
<PAGE> 71
HEALTHEON / WEBMD -- HUMANA: OVERVIEW
[Healtheon(TM) | WebMD(SM) Logo] [Humana(R) Logo]
- Accelerate physician-payer connectivity
- Drive physician transaction revenues
- Accelerate regional market penetration
- Enable robust consumer-to-business offering
<PAGE> 72
HEALTHEON/WEBMD-KINETRA/EDS/LILLY: OVERVIEW
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
[Healtheon(TM)/ WebMD(SM) [Kinetra [Lilly [EDS
Logo] Logo] Logo] Logo]
</TABLE>
Overview:
- - Purchase of Kinetra; Strategic Revenue-based Relationships with Eli Lilly and
EDS
Primary
Benefits:
- - Connectivity between 50,000 referring physicians and 200 IDNs and Payors
- - 50mm clinical transactions annually
- - EDS partnership - WebMD Practice is preferred desktop for all EDS' commercial
and government healthcare clients plus ASP service for digital health plans
- - Eli Lilly partnership -- $60 MM of advertising/sponsorships
<PAGE> 73
HEALTHEON/WEBMD-KINETRA/EDS/LILLY: OVERVIEW
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
[Healtheon(TM)/ WebMD(SM) [Kinetra [Lilly [EDS
Logo] Logo] Logo] Logo]
</TABLE>
- - Accelerate physician market penetration
- - Accelerate IDN penetration
- - Expand connectivity to government payers
- - Drive transaction revenues
- - Drive pharma sponsorship revenues
<PAGE> 74
HEALTHEON/WEBMD -- MEDTRONIC: OVERVIEW
[Healtheon(TM) | WebMD(SM) LOGO] [MEDTRONIC LOGO]
- Medtronic commits $50M to sponsor DTC programs over 4 years
-- Create co-branded channels for chronic diseases, including
cardiovascular
-- Collaborate to create co-branded portal to connect consumers
with Medtronics for heart monitoring
- Medtronic invests $50M in WebMD Europe
<PAGE> 75
HEALTHEON/WEBMD -- MEDTRONIC: OVERVIEW
[Healtheon(TM) | WebMD(SM) LOGO] [Medtronic LOGO]
- Develop DTC programs for medical device companies
- Expand high-quality clinical content
- Drive sponsorship revenues
- Accelerate entry into International markets
<PAGE> 76
WebMD(SM) logo Health Web Page
[WebMD Screen Shot]
<PAGE> 77
WebMD(SM) logo Practice Web Page
Direct from the
WebMD(SM) National News Center Web Page
[WebMD Screen Shot]
<PAGE> 78
Health Teacher with WebMD(SM) logo Web Page
[WebMD Screen Shot]
<PAGE> 79
WebMD(SM) logo Registered Nurse Web Page
[WebMD screen shot]
<PAGE> 80
WebMD(SM) logo Practice Web Page
[WebMD screen shot]
<PAGE> 81
WebMD(SM) logo Practice Web Page
[WebMD Screen Shot Showing links to Lilly and Quintiles]
<PAGE> 82
WebMD(SM) logo Health Web Page
[WebMD Screen Shot Showing Benefit Central page]
<PAGE> 83
WebMD(SM) logo Sports & Fitness Store Web Page
[WebMD Screen Shot]
<PAGE> 84
WebMD(SM) logo Practice Web Page
[WebMD Screen Shot Showing Check Eligibility page for payer plans]
<PAGE> 85
WebMD(SM) logo Practice Web Page
[WebMD Screen Shot Dx-Lab Orders/Results]
<PAGE> 86
WebMD(SM) logo Practice Web Page
[WebMD Screen Shot New Rx Order]
<PAGE> 87
[BAYLOR HEALTH CARE LOGO] WebMD(SM) logo Practice Web Page
[WebMD Screen Shot showing Baylor Health Care
links to Cardiology, Infectious Diseases,
Internal Medicine, Managed Care, Infectious
Diseases, Orthopedics, Pediatrics, Pharacotherapy,
and Primary Care]
<PAGE> 88
CVS(R)/pharmacy logo with WebMD(TM) logo Web Page
[WebMD Screen Shot showing links to CVS
Pharmacy Counter, Personal Care,
Health & Wellness and Vitamins, Minerals
and Herbs]
<PAGE> 89
El Portal Medical Group WebMD (SM) logo
Plastic and Reconstructive Surgery PARTICIPATING PRACTICE
Web Page
<PAGE> 90
WebMD(SM) logo Practice Web Page
[WebMD screen shot Check Eligibility regarding payer plans]
<PAGE> 91
WebMD(SM) logo Practice Web Page
[WebMD screen shot showing Dx-Lab Orders/Results]
<PAGE> 92
WebMD(TM) logo Practice Web Page
[WebMD screen shot showing New Rx order]
<PAGE> 93
[BAYLOR WebMD(SM) logo Practice Web Page
HEALTH CARE LOGO]
[WebMD Screen showing Baylor Health Care links to Cardiology, Infectious
Diseases, Internal Medicine, Managed Care, Infectious Diseases, Orthopedics,
Pediatrics, Pharocotherapy, and Primary Care]
<PAGE> 94
CVS/pharmacy logo with WebMD(SM) logo Web Page
[Screen shot showing links to CVS Pharmacy Counter, Personal Care, Health &
Wellness, and Vitamins, Minerals and Herbs]
<PAGE> 95
El Portal Medical WebMD(SM) logo
Plastic and Reconstructive Surgery Participating Practice
Web Page
[Screen Shot]
<PAGE> 96
WebMDPractice(SM) logo Web Page
[WebMD screen shot showing Direct from the WebMD(SM) National News Center]
<PAGE> 97
WebMDHealth(SM) logo Web Page
[WebMD screen shot showing News and Events]
<PAGE> 98
WebMD(SM) logo Practice Web Page
[WebMD screen shot showing Direct from the WebMD(SM) National News Center]
<PAGE> 99
WebMD(SM) logo Health Web Page
[WebMD screen shot showing News and Events]
