September 2013

Reflection: Review of Mission, Vision and Values

Staff Kudos

September/October 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

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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:

•Financial Performance

•Important IT updates

•Portfolio clarification

This month’s Meeting in a Box focuses on:

•Financial Performance

•Important IT updates

•Portfolio clarification

August Financial Performance

– 2013 financial performance challenges continue due to declining volumes

– Becoming ONE is currently being implemented as a comprehensive improvement plan and is expected to result in stronger 2014 financial performance

Moody’s Reaffirms Credit Rating:

– Reaffirmed our credit rating (Baa1), however, moved our previous Stable Outlook to a Negative Outlook. The outlook change was largely due to the evolving changes in the health care industry.

– A credit rating downgrade was avoided because of the immediate actions taken by Presence Health leadership to stem recent losses and planned performance improvement strategies.

– Other strengths noted by Moody’s:

• Merger synergies achieved

• Presence Health’s geographic footprint

• Our ability to consolidate our debt structure for additional savings

The change from stable to negative was the result of poor year-to-date 2013 financial performance resulting from significantly declining volumes during a year of transition for the system.

Financial Challenges Continue

There have been questions related to the expenses of a new System Office location in Downtown Chicago.

The move comes at a beneficial time for our System given our challenging financial realities.

By consolidating staff in one central location, Presence Health will save more than $3 million in cash over the term of our lease as compared to our current office configuration.

– This savings is the result of:

• The consolidation of staff to one location, resulting in vacating some existing lease agreements

• The return of Presence Resurrection Medical Center’s professional building to a revenue generating office building

• The potential for generous support from the City of Chicago

Downtown System Office Move to Result in Cost Savings for Presence Health

Presence Health will be moving onto a single network called PresenceHealth.net from two different networks

The new network will:– Allow us to better collaborate and operate across locations– Provide a consistent experience when using any application or service

regardless of location or Legacy affiliation

Some of the benefits will include:– Calendars will now be viewable across Legacy organizations– Microsoft Lync will allow instant messaging, web hosting and video

conferencing– There will be common drives for sharing files– Email archiving will be available for all users, and more

What you need to know/do will be shared as your Ministry or Department goes live over the next several months

Consolidated Presence Health Network

• What is Meaningful Use? • It’s a program from the Centers for Medicare and Medicaid offering

substantial financial incentives to eligible hospitals able to prove compliance

• Meaningful use attestation has been completed for 11 Presence Health ministries.

• Presence Holy Family Medical Center has not achieved attestation as it will launch Epic next month.

• What is attestation? • In essence, it means that the federal government has certified that our

informatics systems and processes meet the new standards

• Our ministries will receive between $22-23 million in federal incentives for meaningful use compliance in 2013

• Ongoing work to meet meaningful use requirements will lead to additional incentives in the fall of 2013 and beyond

Presence Health Marks Significant Meaningful Use Milestone = up to $23 million in Federal incentives

At Presence Our Lady of the Resurrection Medical Center, we are first and foremost focused and committed to providing quality care to our patients and that has not and will not change. 

As an organization, we are looking at a number of options to strengthen patient care and better serve our community of Northwest Chicago.

Under none of the scenarios being considered are we contemplating closing the building and abandoning the community.

No final decision has been made. In the coming weeks we will present recommendations to the Presence Health Board and they will make the final determination on how Presence OLR will best meet the needs of our patients and the overall health of the community.

 Any option they choose is subject to a thorough review process including legal and regulatory requirements.

These are difficult conversations in a dynamic time for the health care industry, but at the heart of our decision will be our commitment to do what’s best for the community we serve.

Clarification of Recent News Story

The Fall Marketing campaign focuses on how consumers can access Presence Health.

– Goal: To continue to build awareness of Presence Health as a quality brand while also connecting local ministries with the health system.

Why are we advertising in these challenging financial times? – We must maintain our focus on ways to enhance growth and

increase volume across the health system.

The campaign uses mass media: television, print, radio, digital, outdoor and transit

– The direct mail component of campaign will be customized by market and mailed mail on October 7 to over 400,00 households in our service areas. 

Marketing Campaign to Drive Consumer Access

Questions?