Stratus Healthcare Integrated Network Keeping Health Care Local across Georgia. February 10, 2016

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1 Stratus Healthcare Integrated Network Keeping Health Care Local across Georgia February 10, 2016

2 Agenda Introductions and Overview Vision, Mission, Values and Principles of Stratus Healthcare Location and Partners Governance and Strategic Goals Tactics and Implementation Status of Stratus Summary and Conclusion

3 Faculty Stratus Healthcare Integrated Network Bill Richardson, FACHE President and CEO Tift Regional Health System Tifton, GA Steven Gautney, FACHE President and CEO Crisp Regional Health Services Cordele, GA

4 Founders Tift Regional Health System (TRHS) is a growing, 2-hospital not-for-profit system serving 12 counties in South Central Georgia. TRHS offers more than 165 physicians with expertise in over 30 specialties. TRHS provides a wide-range of care with outpatient, geripsych, skilled nursing, and clinics. Navicent Health provides a broad range of community-based, outpatient diagnostic, primary care, extensive home health and hospice care, and comprehensive cancer and rehabilitation services. Navicent Health is serves as the primary teaching hospital for the Mercer University School of Medicine.

5 Rural Member Crisp Regional Health Services mission is to provide appropriate, quality care and assistance in maintaining good health in an efficient and caring manner to all who need our services and as near their home as possible. Crisp Regional Health Services Blackshear Retirement Villas CareSouth Homecare Cordele Health and Rehabilitation Center Warwick Healthcare Center Crisp Physical Therapy Center Crisp Regional Convenient Care Clinic Crisp Regional Dialysis Center Crisp Regional Health Services Crisp Regional Hospital Crisp Regional Nursing and Rehabilitation Center

6 Vision, Mission and Values

7 Stratus Vision and Mission Our vision is to be the providers of choice by providing a clinically integrated network of medical professionals working together to coordinate patient-centered, high-quality and efficient care. The mission of Stratus Healthcare is to enhance the health and wellness of our patients by delivering exceptional care through a connected community of physicians, hospitals and shared services.

8 Value Proposition Clinical Excellence Service Excellence Cost Excellence Governance

9 Principles Founding Principles Physician Leadership and Engagement Providing the Right Care at the Right Place and Right Cost Culture of Trust and Collaboration Patient Centered Approach with a Focus on Efficiency and Clinical Quality Commitment to Improving the Health of Our Patient Populations Independent Providers Coming Together to Build Systems of Care

10 Location and Partners

11 Partners & Location Stratus Membership 20 Rural Hospitals 15 Safety Net Hospitals 8 Critical Access Hospitals 2 Urban 8 Suburban

12 Partnering with Others Strategic purpose of a partnership Options and approach toward partnering - Internal Considerations - External Considerations Resources - Capacity to plan - Time to plan

13 Partnering with Stratus Expectations and outcomes Opportunities Threats Keeping momentum Next steps for your organization

14 Governance and Strategic Goals

15 Governance Stratus Governing Board 16 Physician Representatives 16 Executive Representatives Fiduciary Committee Clinical Services Information Technology Shared Services Strategic Initiatives

16 Strategic Goals Stratus Healthcare Top Strategic Goals Developing a Clinically Integrated Network Stratus Member Employee Health Plan Development Developing a Partnership with a Quaternary Provider Developing a Payer Strategy Sharing Cost Savings Opportunities

17 Tactics and Implementation

18 Our Approach Sustained performance improvements through: Economies of Scale Economies of Scope Economies of Structure Economies of Skill

19 Economies of Scale & Scope Economies of Scale Healthcare system Apply market powers Economies of Scope Increase productivity and output

20 Economies of Structure & Skill Economies of Structure Physician leadership & engagement Capital efficiency Economies of Skill Knowledge Transfer Stratus University Engaging Population Health

21 Status of Stratus Healthcare

22 Progress What Stratus offers One stop shop Access to known high quality providers to support access Competitive cost structure Clinical integration platform Potential partnerships Employers National retail giants Quaternary Healthcare systems Other clinically integrated networks

23 Progress Refocusing of Critical Access and Rural Hospitals Stratus offers a forum for dialogue Help stabilize/manage struggling hospitals in the Stratus Network Allowed to benefit from scale and scope

24 Maintaining Local Control Allowed to benefit from many economies without: Mergers & acquisitions Commitment to long-term relationships Expending large capital investments

25 Creating Systems of Care Direct relationship with payers and employers Establish new care and payment methods care management focus Narrow Network Regional and possible national networks and contracting Partnership with a quaternary healthcare system

26 Establishing a Clinical Platform Clinical Integration Establish clinical integration platform for implementation Prepare for a clinically integrated network

27 Summary and Conclusion

28 Summary Performance improvements are expected through economies of scale, scope, structure and skill. 1. Stratus was able to apply market powers toward suppliers to rein in costs in shared savings opportunities. 2. Outcomes could also be seen in increased output in several key areas of scope. 3. Knowledge transfer was also a focal point; the Stratus University was developed as the basis for in-house training and CME. 4. The engagement of population health was also a consideration in the educational planning process.

29 Conclusion Establishing new care and payment methods with a care management focus including: Narrow network; Regional and possible national networks and contracting; Partnership with a quaternary healthcare system Lessons learned: Never underestimate the power of culture, this must be a priority and consideration along with strategy; Create a board structure that facilitates speed to execution; Identify physician leaders.

30 Contact Information Bill Richardson, FACHE President and CEO Tift Regional Health System Tifton, GA Steven Gautney, FACHE President and CEO Crisp Regional Health Services Cordele, GA

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