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NRC Health is one of the nation’s largest healthcare performance improvement firms, supporting more than 7,200 organizations.

Our integrated solutions portfolio and proprietary methods yield insights that help clients better understand the areas that most to the people they care for. Guided by this focus, staff can more effectively impact quality improvement and cost reduction.

NASDAQ: NRCIA AND NRCIB

Letter to Shareholders from 2016 Annual Report

Since its origination about 20 years ago, “Nothing about me without me” opened the
door for individuals’ participation in their own care decisions and started the journey
towards patient engagement. While progress has been measurable, to reach our
desired destiny of a fully engaged population, the dialogue must dramatically evolve.

Most would agree that today our conversations remain far too clinical, largely
superficial, and focused on the here and now. Our profession provides the most
personal of services, yet we have totally inadequate knowledge about the human
beings we serve. While we go to heroic levels for the slightest clinical improvement
and at great costs, we have simply missed the economics and power of human
understanding as the driver of better outcomes.

Human understanding can—and should—only be achieved one person at a time.
Meaningful and personalized. No generic generalizations. No percentiles. N = 1.
Once mastered, the benefits are endless—a diagnosis richly enhanced with more
insight on activities of daily living; treatment compliance ensured once the real fears
are uncovered; life dreams pointed to the right (not best) care options.

Beyond patients, mastering human understanding can address many hurdles we face
in healthcare, including reestablishing the joy in work for all in the healthcare work
force. The power of human understanding of a patient is no different than meaningful
and personalized human understanding of a coworker.

National Research Corporation has long been known for uncovering consumers’
attitudes, preferences, and behaviors, as well as improving the patient experience.
Your Company has now broadened its cause by committing ourselves to a bold new
aim. We believe all care is delivered better the more we understand.

Introducing NRC Health—human understanding.

Sincerely,
Michael D. Hays
Fellow Owner

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