November 2013

Reflection: Review of Mission, Vision and Values

Staff Kudos

November Update – Connecting the Dots

Questions

Meeting Agenda

3

HonestyThe Value of Honesty instills in us the courage to always speak the truth, to act in ways consistent with our Mission and Values, and to choose to the right thing.

OnenessThe Value of Oneness inspires us to recognize that we are interdependent, interrelated and interconnected with each other and all those we are called to serve.

PeopleThe Value of People encourages us to honor the diversity and dignity of each individual as a person created and loved by God, bestowed with unique and personal gifts and blessings, and an inherently sacred and valuable member of the community.

ExcellenceThe Value of Excellence empowers us to always strive for exceptional performance as we work individually and collectively to best serve those in need.

Inspired by the healing ministry of Jesus Christ, we, Presence Health, a Catholic health system, provide compassionate, holistic care with a spirit of healing and hope in the communities we serve.

MissionV

alu

es

We will be a leader in transforming health care by delivering clinical excellence, outstanding value and exceptional experience to achieve better health for our communities.

Vision

Kudos

Operating Model

Optimized Asset Portfolio

Innovative Care Model

Culture Transformation

Financial Performance

2013 Operating Priorities

This month’s Meeting in a Box focuses on:

•Human Resources

•Financial Performance

•Operating Model

•Becoming ONE

This month’s Meeting in a Box focuses on:

•Human Resources

•Financial Performance

•Operating Model

•Becoming ONE

As you know, Presence Health has implemented a new benefits enrollment system that provides easy internet-based access, 24 hours a day and 7 days a week for all employees.

The new site is www.ebenefits.com/presencehealth.

The online tool also allows employees to view paystubs, sign up for direct deposit, change federal and state withholdings and check benefits.

This system replaces the MyPay site for legacy Provena employees. They will have access to paystubs through November 30; then all new paystubs will be included within the new Pay & Benefits site.

All address changes and emergency contact changes can be made by contacting your local HR Department.

Human Resources Update: Presence Pay & Benefits Site Reminder

Earlier this month, Standard & Poor's affirmed Presence Health’s BBB+ long-term bond rating, but revised our outlook to negative.

The negative outlook reflects Presence Health's operating losses in 2013 and overall volume declines during a year of transition.

The volume declines in early 2013 have resulted in acceleration of integration plans that were to occur more gradually over a two to three year period.

S & P recognized our ongoing focus on health care reform and our execution of performance improvement and consolidation initiatives as part of Becoming ONE.

Why should we care about bond ratings? The ratings are assessments of creditworthiness and affect an organization’s ability to borrow money and how much it pays in interest charges.

Finance: S&P Shifts Presence Health’s Outlook

Creating six regions allows us to move a step closer to greater integration as a health system.

Rationale for moving hospitals under regional leadership teams: – Geographic location:

• All of the Presence Chicago-based hospitals are in close proximity to one another.

• Presence Saints Mary and Elizabeth already operates two campuses and is considered a region on its own.

• The suburban regions were determined based on current synergies and opportunities to collaborate further between the campuses.

– Enabling greater collaboration: • Opportunities to pool resources and invest more strategically in both ministries.

– Allowing for greater efficiencies and a consistent approach: • As we move toward less variation and more standardization, moving to more

centralized decision making is important to achieve our performance and service delivery goals.

If we are moving to a more integrated operating model, why do we have regions?

How are we defining the regions?

Regions Regional Name

Regional CEO

• Presence Saint Joseph Medical Center (Joliet)• Presence St. Mary’s Hospital (Kankakee)

Suburban South Beth Hughes

• Presence Resurrection Medical Center (Chicago)• Presence Our Lady of the Resurrection Medical Center

(Chicago)• Presence Holy Family Medical Center (Des Plaines)

City Northwest John Baird

• Presence Saint Joseph Hospital (Chicago)• Presence Saint Francis Hospital (Evanston)

Lakefront Roberta Luskin-

Hawk, MD

• Presence Mercy Medical Center (Aurora)• Presence Saint Joseph Hospital (Elgin)

Suburban West Maureen Bryant

• Presence Saints Mary and Elizabeth Medical Center (Chicago)

City Central Martin Judd

• Presence Covenant Medical Center (Urbana)• Presence United Samaritans Medical Center (Danville) Central State Mike Brown

Names have been established to identify regions across Presence Health. Below is how the hospital leadership aligns to these regions.

PLC and PMG continue as separate entities. Structures are being finalized. PLC CEO: Connie MarchPMG CEO: Howard Drenth

As we move to a more integrated model and aligning to the new regions, several new regional and/or system leader roles have been posted.

These roles will be System driven and locally/regionally deployed.

Roles posted and in a selection process: – Regional Leader, Pharmacy – Regional Leader, Human Resources – System Leader, Human Resources (for System, PLC and PMG/PHP) – Regional Leader, Strategy and Business Development – Regional Leader, Support Services – Regional Leader, Care Management – Regional Leader, Quality Management – Regional Leader, Risk Management – System Leader, Compliance

• For the regional roles, the operating model aligns one leader for each of the six designated regions. Support Services will include the six regions, plus PLC. There are also several System Leader roles in Human Resources, Compliance and Pharmacy Operations.

What is the meaning behind regional roles?

What changes are being implemented across the System?– Food Service Managers/Directors and Dietitians in the hospitals are in the

process of transitioning to become employees of Sodexo.• Some legacy Provena Ministries already have a portion or both of these

functions outsourced to Sodexo, so this change will not affect those Ministries.

– Affected Food Service Managers/Directors and Dietitians are currently reapplying and interviewing for these positions.

– Employee transitions will be complete by mid-December.

– PLC is finalizing a food service solution.

What are the benefits of this change?– Consistency in service levels and offerings across Ministries.– Sodexo has committed to $3.8M worth of capital improvements to

kitchens and cafeterias across the System. – Room Service will be implemented for all inpatients.

• Legacy Provena already offers this to inpatients at the acute care locations. The leadership transition to Sodexo will make it possible to expand the perk to all Ministries in 2014.

Becoming ONE: Sodexo Implementation Update

The three-year goal for Becoming ONE initiatives: $188 million in savings opportunities.

To date, we have identified just over $163 million in cost savings opportunities.

More work will be underway to close the $21 million gap to ensure we can achieve our goal.

Update on the Becoming ONE Financial Benefits

Questions?