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A Partnership Success StoryThe Cleveland Clinic and Akron General

Health SystemsLessons from the Top

Thomas L. “Tim” Stover, MD, MBA

President & CEO

Akron General Health System

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Akron, Ohio

40 miles south of Cleveland

Population: 198,622 (Summit Cty: 541,824)

Median Age: 35

Estimated median

household income:

$32,645

Akron General Health System

Founded in 1914

as Peoples’ Hospital

Today, an Integrated Healthcare Delivery System

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Main Campus

Health & Wellness Centers

Other Locations

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Competitive LandscapeCleveland

Two Large Systems

Cleveland Clinic

University Hospitals

Akron - 40 Miles South of Cleveland

Two Hospital Systems

Akron General Summa

Key Criteria for Evaluating Strategic Options

• Akron General developed key criteria in conjunction with Booz in June 2012

• Cultural Fit

• Health & Wellness

• Clinical Expertise

• IT Capability

• Commitment to Community

• Financial Strength

• ‘

Akron General Pathway to Partnership

• Engaged Consultant – Ponder

• Many Potential Partners Vetted

• Serious Discussions – Nearly 24 months

• Culture Match Key

• First Potential Partnership Failed

• Back to the Drawing Board

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Timeline

• December 20, 2013: CHS deal no-go

• June 9, 2014: Akron General-Cleveland Clinic Letter of Intent (LOI) signed

• August 23, 2014: Affiliation Agreement signed

• September 2, 2014: AGHS-CC deal official

Objectives of Akron General Cleveland Clinic Partnership

� Strengthen and improve access to high quality, affordable health care

� Enhance & strengthen clinical programs offered at Akron General

� Enhance Akron General as a recognized value-based healthcare organization preserving its charitable mission, medical education and research

� Find operational efficiencies

� Grow

Affiliation Agreement

• Cleveland Clinic becomes minority owner of Akron General

• Clinic exclusive partner of Akron General in Summit County

• Significant capital investment for growth

• Option to remain minority owner or full ownership after 1 yr, up to yr 6

• Both organizations represented on each other’s Board

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The Cleveland Clinic Decision

• No Better Clinical Partner

• Proximity a Factor – Brand Strength

• Similar Cultures – “Patients First”

• Relationship Built on Trust

• Shared Not-For-Profit Mission

• Larger Partner with Significant Resources and Experience

• Similar Wellness Philosophy

Current Affiliation Activity

• Work Teams Meeting Constantly

• Integration is Working

• Key Projects Underway

- Physician Alignment Efforts

- New EMR Integration

- Strengthening of Clinical Programs

• Heart, Nephrology

- Capital Projects – New ED

Lessons Learned

• External Expert Guidance Needed

• Develop Selection Criteria

• Assemble Key Teams – Be Inclusive

• Expect Bumps

• Effort Takes Time – Cannot Rush

• Culture Similarities Matter

• Over Communicate

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QUESTIONS?