1. St. Lukes Health SystemOne St. Lukes Serving Our Community 1

2. More Than a Century of Caring: 1902-2010 Our Mission To improve the health of people in our region Not-for-profit No investors or stockholders Community Ownership Community Governance Excess revenues reinvested in people, facilities, and technology Philanthropic support stays at St. Lukes and in Idaho 2

3. St. Lukes Health SystemA Brief History 1902 St. Lukes Hospital founded in Boise. 1928 St. Lukes opens new four-story hospital at the corner of Bannock and First Street. 1952 St. Lukes opens a new $1 million expansion becoming Idahos largest hospital with 245 beds. 1968 Dr. Rodney Herr performs the first open-heart surgery in Idaho at St. Lukes. 1972 Mountain States Tumor Institute (MSTI) created. 1996 St. Lukes Meridian opens as outpatient facility. St. Lukes Hospital opened in this Boise home on December 1, 1902. 2000 St. Lukes Wood River opens. 2001 St. Lukes Meridian opens as full-service community hospital. 2006 St. Lukes and Magic Valley Regional Medical Center form partnership; St. Lukes Health System is created with St. Lukes Boise/Meridian, St. Lukes Wood River, and St. Lukes Magic Valley. 2007 Construction of new St. Lukes Magic Valley hospital begins. 3 2010 McCall Memorial Hospital joins St. Lukes becoming St. Lukes McCall.

4. St. Lukes Health System 2011 St. Lukes Magic Valley St. Lukes Meridian Beds: 226 Beds: 165 Employees: 1,891 Employees: 1,322 St. Lukes Boise Beds: 403 Employees: 5,646* St. Lukes Wood River St. Lukes McCall Beds: 25 Beds: 15 Employees: 357 Employees: 205 * Includes outlying clinics and system staff.

5. St. Lukes Health System Idahos Largest Health Care ProviderWith 5 hospitals and more than 100 clinics, St. Lukes HealthSystem serves thousands of patients throughout southwestand central Idaho and eastern Oregon.Hospitals: Magic Valley Boise Meridian Wood River** McCall**Mountain States Tumor Institute: Magic Valley Fruitland Nampa Meridian BoiseManaged Hospitals/Clinics: Gooding Mountain Home Stanley Weiser Challis 5**Critical Access hospital

6. St. Lukes Health System A Community Asset St. Lukes is community-owned. St. Lukes is Idaho-based and Idaho- led. The only Idaho-based health system. Governed by a volunteer board of directors comprised of local community leaders. St. Lukes is not-for-profit. 100 percent of net revenue is reinvested in the organization and the communities served. St. Lukes accepts all patients regardless of their ability to pay. 6

7. Idahos Most Awarded Health System Recent Awards: St. Lukes MSTI designated as an National Cancer Institute Community Cancer Center Consumer Choice Award ongoing since 2001 Thomson Reuters 50 Hospital for Cardiovascular Care Proud to be a Magnet-designated Hospital for Nursing Excellence 7

8. St. Lukes Areas of Focus: The 3 EsExcellence: In all that we do PeopleEfficiency: R S E Good stewards of our L T communitys resources S Q U A E W E T Lean implementation A R I A V L O R I I N DEngagement: C T S S E Of employees and Y H H I I physicians P P Our people are St. Lukes S most valuable resource 8

9. St. Lukes Health System by the NumbersSt. Lukes Boise St. Lukes McCall Babies Delivered: 4,211 Babies Delivered: 83 Inpatient Visits: 25,309 Inpatient Visits: 456 Outpatient Visits: 596,584 Outpatient Visits: 67,304St. Lukes Magic Valley St. Lukes Meridian Babies Delivered: 1,719 Babies Delivered: 1,185 Inpatient Visits: 10,719 Inpatient Visits: 10,046 Outpatient Visits: 517,636 Outpatient Visits: 311,067 St. Lukes Wood River Babies Delivered: 232 Inpatient Visits: 1,333 Outpatient Visits: 74,873FYE Numbers (9/30/2010) 9

10. St. Lukes Health System Main Service Lines St. Lukes is home to First open-heart Founded in 1971, MSTI Idahos only Childrens surgery in Idaho has become Idahos Hospital. performed at St. largest cancer care Lukes in December provider. St. Lukes Childrens 1968. Hospital at our Boise St. Lukes MSTI treats facility is a hospital St. Lukes provides approximately 800 within a hospital. cardiac care for heart patients each day from patients throughout Idaho, Nevada, Utah, St. Lukes Childrens Idaho, and in parts of and Oregon. Hospital has Idahos Oregon, Nevada, and largest and most Utah. St. Lukes MSTI is one experienced Level III of only 30 National Newborn Intensive Care St. Lukes provides Cancer Institute Unit and the states only more heart procedures Community Cancer Pediatric ICU and than any other hospital Centers. Hospital School. in Idaho. 10

11. St. Lukes Health System Core Values Integrity Being honest; doing the right thing, even when no one is looking. Compassion Acting to help others in need, and doing so with kindness and understanding. Accountability Being responsible for your job duties, the quality of your work, and the consequences of your actions. Respect Being considerate of other people, their property, and their point of view. Excellence Always doing your best and doing what is best, in every situation. 11

12. St. Lukes Health System VisionSt. Lukes Health System will transform health care by aligning with physicians and other providers to deliver integrated, seamless, and patient-centered quality care across all St. Lukes settings. 12

13. St. Lukes Pillars of Excellence R E S L T Q A E P S P E U T W E e R A I A O o V L O R P p I I N D L C l T S S E E e Y H H I I P P S 13

14. Our Income Comes from Three Places Operations Debt (Loans) Philanthropy 14

15. St. Lukes Health System Financials 15

16. Community Benefit R E S L T Q A E P S P E U T W E e R A I A O o V L O R P p I I N D L C l T S S E E e Y H H I I P P S 16

17. St. Lukes Health System Financial ObjectivesAchieve / maintain characteristics of an AA rated organization: Sufficient cash resources Solid operating and cash flow margins Appropriate level of capital spending Appropriate debt structure 17

18. St. Lukes Health System Economic Impact Idahos largest private employer: 9,000+ jobs Annual salaries and benefits for employees: $450 million.University of Idaho Economic Impact Study - 2009Economic Multiplier Effect of St. Lukes Produced nearly $1.87 billion in sales Generated more than 18,700 jobs Produced $36.7 million in sales and property taxes (indirect business taxes) 18

19. St. Lukes Health System Building for the future In 2007, St. Lukes broke ground on the new Magic Valley Medical Center a $238 million, 700,000 square foot facility on 40 acres. The project was Idahos largest commercial construction project. The state- of-the-art hospital opened on May 21, 2011. St. Lukes invested nearly $20 million in two former Micron buildings to transform those building into a new central laboratory and central laundry facility that opened in March 2011 St. Lukes also has invested several million dollars in expansions of its cardiac cath labs in Meridian and the development of Idahos first Cardiac Rehabilitation Center. 19

20. St. Lukes Health System 2010 to 2020 St. Lukes must invest $1.28 billion over the next decade to continue providing the exceptional level of care that people of our communities expect and deserve. Philanthropy is critical to achieving our long-term goals. We will work with community leaders and donors to raise $128 million over the next decade 20

21. Philanthropic Support R E S L T Q A E P S P E U T W E e R A I A O o V L O R P p I I N D L C l T S S E E e Y H H I I P P S 21

22. St. Lukes Health System The Next 10 Years St. Lukes MSTI will expand and enhance cancer care services ($150 million) St. Lukes Heart will usher in the next generation of heart and vascular care ($200 million) St. Lukes Childrens Hospital will expand its services to better meet the medical needs of children ($25 million) Additional regional Centers of Excellence including Womens Services, Medical Surgical, Ortho/Neuro, and overall expansion of capacity ($100 million) One patient, one medical record ($100 million) 22

23. St. Lukes Meridian Medical CenterCampus Expansion Proposal New Mountain States Tumor Institute (MSTI) Flagship hospital

24. St. Lukes Boise Medical CenterCampus Expansion Proposal New St. LukesPeds Oncology Heart Hospital Childrens Hospital Expanded with its own branded entrance

25. St. Lukes Health SystemPerspective on Health Care Reform Positive: 10 million 30+ million more people with health insurance; coverage for folks with a pre-existing condition Concerns: Cuts to Medicare and Medicaid to pay for reform Provision of health insurance for all not supported by adequate supply of primary care providers and health care services Likely increase in number of Medicaid beneficiaries. Medicaid doesnt cover our costs. 25St. Lukes Health System position paper: www.stlukesonline.org

26. St. Lukes Health System ChallengeBecoming an Integrated Health Care SystemDriven by the unified efforts of physicians,community leaders and committedemployees St. Lukes will provide: A comprehensive health care delivery system with convenient, timely access to care providers. Safe, effective and efficient care with a strong focus on wellness and prevention throughout our patients lives and across our health system. Timely and convenient access to health care data across St. Lukes Health System with a system-wide electronic record system (one patient, one record). 26

27. The St. Lukes Health System Promise We will focus on providing value to those we serve. Our aim is to achieve superior outcomes at the lowest possible cost. In all that we do we will never lose sight of the reason we are here to serve patients. 27