Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality of Care & Patient Satisfaction
• Employee Recruitment, Development & Retention
• Patient Privacy & Electronic Health Records
• Pricing & Billing Transparency
• Access for Low Income Patients
• Diversity and Inclusiveness
• Corporate Governance
• Environmental Stewardship

Environmental Achievements

• Supply Chain Modernization project reduced inbound and outbound shipments by an estimated 20%, lowering freight costs and decreasing Hanger’s carbon footprint. Opened a new distribution center utilizing a custom box solution that right-sizes shipping cartons, reducing cardboard and packing material usage and transportation cube.

Social Achievements

• Net Promoter Score (NPS) improved to 86.6 out of 100, a 0.5 increase from the previous year. Funded approximately $14 million of O&P services to low-income patients, providing direct financial assistance to 47,000 patients. Clinicians volunteered approximately 3,579.75 hours. Launched a new wellness program, Healthy Hanger.
• 30% of open positions filled internally. 82% of residents hired in the National Residency program are diverse by gender, race or ethnicity. 52% of clinician hires in 2021 were diverse, and 42% of clinician positions filled through internal relocation were diverse. 31% of clinicians are female (exceeding the industry average of 28%).

Governance Achievements

• Established a robust compliance function exceeding required standards, including a Chief Compliance Officer reporting to both the CEO and the Board. Maintained a whistle-blower policy. ESG efforts overseen by the Corporate Governance & Nominating Committee of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 setbacks impacting patients and employees, supply chain issues, and challenges to employee retention.
• Lack of centralized management of energy and waste across clinic locations.
• Need to demonstrate the value of O&P services in a value-based care environment.

Mitigation Strategies

• Supply Chain Optimization project to update manual processes, legacy systems, and physical supply chain assets. Implementation of a new wellness program (Healthy Hanger). Development of clinical research to measure and report the health outcomes impact of O&P patient care. Formation of an ESG task force subcommittee to determine the practicality and feasibility of measuring and reporting on environmental topics.

Supply Chain Management

Responsible Procurement

• Supplier diversity initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board) for Health Care Delivery (SICS® HC-DY) and Health Care Distributors (SICS® HC-DI)

Environmental Metrics

ESG Focus Areas

• Quality of Care & Patient Satisfaction
• Employee Recruitment, Development & Retention
• Patient Privacy & Electronic Health Records
• Pricing & Billing Transparency
• Access for Low-Income Patients
• Diversity and Inclusion
• Energy and Waste Management
• Supply Chain Efficiency

Environmental Achievements

• Reduced inbound and outbound shipments by an estimated 20% through supply chain optimization, lowering freight costs and decreasing carbon footprint.

Social Achievements

• Improved Net Promoter Score (NPS) to 87.7 out of 100, a 1.1 improvement over the prior year.
• Funded approximately $20.2 million in O&P services to low-income patients.
• Provided direct financial assistance to approximately 46,000 patients.
• Funded approximately 3,580 hours of volunteer time off for community service.
• More than 30% of open positions filled by internal employees.
• 80.5% of residents hired in the Hanger Clinic National Residency Program are diverse by gender, race, and/or ethnicity.
• 52.4% of all clinicians hired in 2022 and 64% of all clinician positions filled through internal relocation were diverse.

Governance Achievements

• Maintained a robust compliance function to ensure compliance with applicable healthcare regulations.
• Implemented a Quality Management Program overseeing multiple aspects of care delivery, provider credentialing, adverse event documentation, and peer review.
• Established a robust corporate risk management function focused on workplace safety, crisis communications, OSHA compliance, and contingency planning.

Climate Goals & Targets

Environmental Challenges

• Managing the impact of the COVID-19 pandemic on operations and events (e.g., cancellation of Hanger LIVE 2022).
• Centralized management of energy, gas, and water utility use across numerous clinic locations.
• Lack of centralized recycling services across clinic locations.

Mitigation Strategies

• Supply chain optimization project to reduce costs and carbon footprint.
• Formation of an ESG Task Force subcommittee to evaluate and report on environmental topics.
• Development of plans for utility bill processing, strategic energy sourcing, and rate optimization.

Supply Chain Management

Responsible Procurement

• Supply chain optimization project including a new distribution center and custom box solution to reduce cardboard and packing material usage.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board) for Health Care Delivery (SICS® HC-DY)

Environmental Metrics

ESG Focus Areas

• Patient Focus
• Operate With Integrity
• Nurture Our Human Capital
• Promote Diversity & Inclusion
• Contribute Positively to the Communities We Serve
• Sound Environmental Stewardship

Environmental Achievements

• Launched an extensive review and request for proposal process to centralize the management of electric, gas, water, sewer, and waste management for over 900 locations.
• Improved inventory integrity at Alpharetta distribution center, reducing out-of-stock items by 35% and processing more than double the number of orders on time.
• Initiated a reverse logistics initiative to improve customer experience while reducing cost, carbon footprint, and process cycle times.

Social Achievements

• Funded approximately $18.54 million in O&P services to low-income patients, providing assistance to approximately 69,301 patients.
• Maintained a high Net Promoter Score (NPS) of 87.1, exceeding the healthcare benchmark.
• More than 27% of open positions filled by internal employees.
• 80.5% of residents hired in the Hanger Clinic National Residency Program are diverse by gender, race, and/or ethnicity.
• 70.6% of all clinicians hired in 2023 and 68.6% of all clinician positions filled through internal relocation were diverse.
• 37% of clinicians are female.
• Hosted Hanger LIVE, an annual employee event with over 1,200 attendees and a virtual experience for over 2,700 employees.

Governance Achievements

• Zero PII breaches and eight PHI breaches (less than .001% of patients serviced).
• Maintained a robust compliance function to ensure compliance with applicable healthcare regulations.
• Established a company-approved supplier diversity policy and strategic plan.

Climate Goals & Targets

Environmental Challenges

• Adequately meeting documentation requirements for medical necessity of devices to avoid payor claim denials.
• Increasing diversity of talent in the field of O&P.
• Minimizing carbon footprint and greenhouse gas emissions from facilities and distribution centers.

Mitigation Strategies

• Migrating clinics and clinicians to a single, robust electronic health records (EHR) platform.
• Investing in Hanger Foundation Diversity Scholarships and mentorship programs.
• Supply chain optimization project, including cloud-based ERP system implementation and reverse logistics initiative.
• Centralizing management of utilities and waste management for over 900 locations.
• Moving distribution center operations to a larger facility with solar energy panels.

Supply Chain Management

Responsible Procurement

• Supplier diversity initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board) Health Care Delivery (SICS® HC-DY)