July 2013

Reflection: Review of Mission, Vision and Values

Staff Kudos

July 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:

•Human Resources Update

•Financial Performance

•Culture Transformation

•Becoming ONE

This month’s Meeting in a Box focuses on:

•Human Resources Update

•Financial Performance

•Culture Transformation

•Becoming ONE

Presence Health Retirement Savings Plan Preview

Effective September 1, 2013 all employees will have access to the new Presence Health Retirement Savings Plan, administered by Lincoln Financial

Provena Health Retirement Plan will be renamed Presence Health Retirement Savings Plan

Resurrection Health Care Corporation 403(b) Retirement Plan plan will transition from Fidelity to the Presence Health Retirement Savings Plan

All future employer contributions will be made to the Presence Health Retirement Plan.

Now through September: Participants will receive a series of communications

– Mailings to homes

– PNN and Today Counts System newsletter (formerly Presence Health News) updates

August and September: Lincoln Financial Retirement Consultants conduct on-site meetings

– Group and one-on-one meetings

– During and after transition

August 1: Transition website launches

– Information about plan

– Key dates

Presence Health Retirement Savings Plan Communication Schedule

Our 2013 goal: 1.5% operating margin. – Presence Health continues at an operating loss year to date. The month of

June resulted in an operating loss of $6.6 million.

– Volumes continue to be an issue.

Industry volume issues and Presence Health: – Acute care volumes across our markets have declined 6.6% from first

quarter 2012 compared to first quarter of 2013. • Acute care volumes across Presence Health have also declined 6.7% for the

same time period.

– Inpatient volume declines are expected to continue, but plans are in place:

• Addressing through adjusting staffing levels to our volumes and monitoring daily

• Hiring freeze in System services

Volume continues to be a challenge across the industry

The goal of Becoming ONE: To create an organizational structure and related operations that allow us to truly become one system, fully aligned and integrated and achieving breakthrough performance.

– Getting there requires long-term strategies (like operating model redesign) as well as short-term activities offering an immediate positive financial boost.

Immediate cost efficiencies announced the week of July 8– Freeze on catering

– 90-day moratorium on office supply purchases

– Standardized linen usage and bed change practices

– Freeze on non-essential travel and conference attendance

– Freeze on new non-clinical temporary labor contracts

– Freeze on new consulting contracts

– New approach to contract reviews

– Purchasing to standardize shredding vendor

Cost-cutting measures in play

Fitch Ratings was the first of the 3 credit rating agencies to designate a bond rating for Presence Health.

– Fitch gave Presence Health a BBB+ Stable Outlook

– This is the first rating for Presence Health and reaffirms the previous Fitch Rating given to Legacy Resurrection Health Care.

Why is a credit rating important?

– Stronger credit ratings mean better access to capital at lower interest rates, enabling the health system to make continued improvements

Meetings with Moody’s and Standard & Poor’s will occur in mid-August

Good news on the financial front

Our Service Promises replace both legacy organization’s former Standards of Behavior.

Why Service Promises?

– Every interaction with patients, residents and families is a chance to exceed their expectations in ways that matter. So, the manner in which we act and work matters greatly.

Presence Health Service Promises are inspired by our Values and serve as our commitment to act in ways that best serve our patients, residents, their families and one another.

Employees will have an opportunity to learn more as part of both instructor-led and web-based training during the late summer and early fall.  

Our Service Promises

Questions?