February 2014

February 2014

Reflection: Review of Mission, Vision and Values

Staff Kudos

February Update – Connecting the Dots

Questions

Meeting Agenda

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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

Integration & Growth

2014 Operating Priorities

This month’s Meeting in a Box

focuses on:

•Becoming ONE

•Financial Performance

•Culture Transformation

•Growth

•Other: Marketplace Enrollment

This month’s Meeting in a Box

focuses on:

•Becoming ONE

•Financial Performance

•Culture Transformation

•Growth

•Other: Marketplace Enrollment

6

Becoming ONE Achievements

Implemented new food services arrangement with Sodexo for improved and consistent quality and greater efficiencies.

Launched new laundry processing system for all 12 hospitals – improving the quality of our linen and saving money.

Pathology arrangement - moving from four separate Pathology contracts to a single-contracting entity for Pathology Services across Presence Health.

A single contract enables a single point of accountability, greater representation within the medical leadership of Alverno Clinical Laboratories, and the ability to advance major initiatives aimed at leveraging Alverno’s technology while also ensuring standardization for improved quality.

7

Becoming ONE Achievements (continued)

Shared Services HIM model and redesigned Patient Access – creating exceptional teamwork and optimizing local responsiveness for day to day issues while pursuing continuous standardization and process improvement across all ministries.

Developed action plans to achieve 25th percentile productivity levels.

Reduced blood utilization through standardized protocols.

2013 financial results:– Presence Health’s actual net income was $69.3 million; exceeding our

projected net income of $47.5 million. This was due to strong investment returns on our portfolio.

– Presence Health operations performance fell short of breakeven by $10 million due to volume/revenue shortfalls. However, we were able to achieve breakeven for fourth quarter 2013 and have launched initiatives necessary to position us for success in 2014 and beyond.

– Balance Sheet was not weakened by 2013 operating realities due to strong investment performance.

Presence Health is dedicated to our Becoming ONE initiatives to help produce $88 million in cost savings for 2014. This savings positions us well for the future.

2014 starts out positive: – Operating Income for January was $1.8 million profit. While less than our

budget of $2.1 million, this is a significant improvement in our run rate.

Declining volumes create financial challenges in 2013; balance sheet remains strong

What is the change?– On October 1, 2014, the ICD-9 code system for medical diagnoses and

inpatient procedures will be replaced by the ICD-10 code system. This change is required for everyone covered by the Health Insurance Portability Accountability Act (HIPAA).

What is the impact on patients and providers?– Benefits include:

• More accurate payment levels• Better data for improvement in performance, efficiencies and cost• More precise diagnosis of patients because of more specialized codes

How is Presence Health preparing?– Approximately 75 percent of the organization will complete specialized

training.– Updates to various systems are being made behind the scenes to

prepare for the change.– An employee engagement campaign will be launched to support the

initiative.

ICD-10 Implementation

Presence Health has been selected by the Illinois Department of Healthcare and Family Services to form a Medicaid Accountable Care Entity (ACE).

An ACE is an organization of health care providers accountable for the quality, cost and care of Medicaid enrollees.

Presence Health Partners (PHP) and Physician Alliance of Illinois recently submitted Presence Health’s application, and the application was selected last week for a “conditional award and funding” (a formal award is conditional on a successful negotiation of a final contract with the State).

The Medicaid ACE provides an opportunity for Presence Health to deliver high quality, lower cost health care to a large population of vulnerable patients across the state.

As an ACE, Presence Health will help achieve the State’s Medicaid Reform Law requiring 50 percent of Medicaid participants to be enrolled in care coordination programs by 2015.

The Illinois ACE program is scheduled to go live in July 2014.

Presence Health to Create Medicaid ACE

Growth: Future Care Delivery – 4 Quadrants of Care

Presence Health’s future delivery model will be capable of growing and thriving in healthcare reform and will include strategies across the care continuum to meet our communities’ health needs.

Integration & Growth

For 2013, 49.4% of our patient care units achieved the 75th percentile for patient satisfaction performance. That’s up from 32% in 2012.

The achievement was related to several factors, including leadership rounding, quiet initiatives to support healing environments, the use of white boards for communication, bedside shift reporting, open visitation and more.

For 2014, the goal is for 55 percent of all units to reach the 75th percentile for patient satisfaction based on a national benchmark.

Patient Satisfaction

We are working hard to be sure uninsured patients in our communities know there is coverage available to them within the Health Insurance Marketplace.

You can help! Direct uninsured patients to helpful resources:

– Call 877-737-INFO to make an appointment to see the nearest Presence Health counselor

– Email [email protected] – Visit our website at

presencehealth.org/marketplace

Do you have family & friends who need health coverage? Presence Health can help them navigate the Marketplace

Certified Application Counselors are available in all Presence Health hospitals and can help:

•Guide patients through the process

•Explain coverage options

•Answer questions

•Help individuals enroll

Questions?