FY 2017 MEMBER VALUE. The leading voice of healthcare since Official State Affiliate of the Following National Organizations

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The leading voice of healthcare since 1939 Official State Affiliate of the Following National Organizations Phung Le Ouchi, LPN, helps Phyllis Garrett, a resident at Hi`olani Care Center at Kāhala Nui FY 2017 MEMBER VALUE Phone: (808) 521-8961 Fax: (808) 599-2879 HAH.org 707 Richards Street, PH2 - Honolulu, HI 96813 Affiliated with the American Hospital Associa on, American Health Care Associa on, Na onal Associa on for Home Care and Hospice, American Associa on for Homecare and Council of State Home Care Associa ons 16

President s Message Return on Investment I joined the Healthcare Association of Hawaii (HAH) in May of 2017, toward the end of HAH s iscal year as chronicled in this Member Value report. Prior to my having the pleasure and honor of serving as HAH s President and CEO, I was aware of HAH s reputation in the community as an advocate and champion for Hawaii s healthcare delivery system. In my irst months at HAH, that impression has been reinforced by the work I have seen by the staff, the Board, and the committees on which many members serve. HAH collaborates with its members and the community to help ensure that everyone in these islands has access to high-quality affordable healthcare. We have been advocating together on your behalf with local agencies and organizations, at the state legislature, and in the halls of government in Washington, D.C. We ve hosted numerous training sessions with community partners and industry experts to help you learn about best practices, patient care, inancial reimbursement and healthcare innovations, and we have been working with your organizations and state and federal agencies to ensure that healthcare organizations are prepared for disasters and state emergencies. The events of the past year show why it is imperative for us to continue working together, across the continuum of care, on the many challenges facing healthcare, both nationally and locally. With a new president and a deeply divided Congress, there are many uncertainties regarding the viability of the Affordable Care Act. Our state iscal picture continues to luctuate and our members continue to be challenged by increasing regulatory burdens, an aging population, and a tight labor market. Despite these obstacles and challenges, I see many opportunities to work collaboratively with each of you to attain the highest standards of patient care, and to maintain access to high-quality healthcare for all the people of Hawaii. This work returns me to my true calling, which is ensuring we have strong and caring healthcare organizations across the continuum, providing quality affordable care for all. HAH leveraged more than $51 million in direct monetary bene it for members this year. $32.8 million in additional federal funds through the hospital sustainability program. $13.3 million in additional federal funds through the nursing facility sustainability program. $4.5 million+ in state and federal matching funds for an in lationary adjustment for skilled nursing facilities. $271,240 statewide for quality improvement through the Partnership for Patients program, and the start of the Hospial Improvement Innovation Netowork (HIIN). $355,165 in travel cost savings for Joint Commission and other in-state education. $28,000 in healthcare scholarships. Farrington Health Academy Graduation HAH is a founding supporter of the Academy, which trains students for careers in the healthcare ields. Sincerely, Hilton R. Raethel, M.P.H., M.H.A. President & CEO Healthcare Association of Hawaii 2 15

HAH Representing You HAH represents the Hawaii healthcare industry on more than 20 state and national leadership groups. Hawaii Academic Progression in Nursing Employer and Conjoint Councils American Organization of Nurse Executives (AONE) Hawaii Association for Professionals in Infection Control and Epidemiology (APIC) Hawaii Chapter Chamber of Commerce of Hawaii Public Health Fund Department of Health Antimicrobial Stewardship Collaborative Department of Health Healthcare-Associated Infections Advisory and Steering Committees Hawaii Maternal and Infant Health Collaborative Hawaii Performance Improvement Collaborative, State Of ice of Primary and Rural Health Hawaii Stroke Coalition Healthcare Financial Management Association (HFMA) Honolulu Community Coalition JABSOM Advisory Council of Hospital CEOs Mountain-Paci ic Quality Health Foundation Board Public Relations Society of America (PRSA) State of Hawaii Division Network Adequacy and Balance Billing Task Force State of Hawaii Preventive Health and Health Services Block Grant Advisory Committee National AA Homecare State Leaders Council Advancing Excellence in Nursing Homes Campaign American Health Care Association/National Center for Assisted Living (AHCA/NCAL) Af iliate Policy Task Force Af iliate State Health Care Association Executives Quality Committee American Hospital Association (AHA) Allied Association Quality Committee Allied Association Telehealth Group Allied Public Relations Executives Regional Policy Board 9 State Hospital Association Executive Forum Council of State Home Care Associations National Association for Healthcare Quality National Association of Home Care and Hospice (NAHC) Forum of State Associations 14 HAH Strategic Plan 2017-2020 In August 2016, the Healthcare Association of Hawaii (HAH) undertook a strategic planning process designed to update the Association s strategic direction and plan for the future. A board-appointed Strategic Planning Task Force provided oversight and guidance for the process. A member survey and interviews with a select group of Hawaii s healthcare leaders provided insight into the challenges, priorities and concerns dominating Hawaii s healthcare environment. Building on HAH s 2011-2015 strategic plan, Vision 2020 is founded on the following ive pillars: Advocacy and Public Policy, Quality and Patient Safety, Financing and Reimbursement, Regulation and Compliance, Communication, Education and Workforce. Each pillar includes a statement of purpose and strategic priorities, which identify how the association plans to achieve these goals. Mission To be Hawaii s most effec ve advocate for a comprehensive and financially strong healthcare system that successfully responds to the diverse and changing health needs of all we serve. ADVOCACY & PUBLIC POLICY QUALITY & PATIENT SAFETY FINANCING & REIMBURSEMENT REGULATION & COMPLIANCE COMMUNICATION, EDUCATION & WORKFORCE Vision A healthy Hawaii where every resident of every age has convenient access to appropriate, affordable, high quality care, and where healthcare providers are reimbursed adequately to deliver that care. As the unifying voice of Hawaii s healthcare providers and an authorita ve and respected leader in shaping healthcare policy in Hawaii, the Healthcare Associa on of Hawaii works with commi ed partners and stakeholders to lead the movement toward achieving an equitable, sustainable Hawaii healthcare system driven to improve quality, efficiency and effec veness for the pa ents and communi es who entrust their care to us. 3

Advocacy Hawaii Healthcare Heroes State Legislation In keeping with the goals in our Strategic Plan to elevate the Association s pro ile and increase public con idence in and knowledge about healthcare HAH launched Hawaii Healthcare Heroes in 2014. A number of HAH s priority bills passed during the 2017 legislative session: Act 60 Nursing Facility Sustainability Program Act 59 Hospital Sustainability Program Clean Claims Housekeeping Bill Both sustainability programs are designed to draw down federal matching Medicaid funds to improve reimbursements and maintain access to care for the Medicaid population. No state funds and no taxpayer dollars will be used. Instead, the legislation raises funds from private facilities. We believe this is the only patient-nominated awards program in the nation. In the third year of the program, ive heroes from Oahu and Hawaii Island were pro iled in the media and honored at the annual Awards and Scholarship Gala, and recognized on the loor of the Hawaii House and Senate Legislature. More than $215,280 in leveraged publicity (TV, print, radio) More than 16 earned media placements HAH also supported the passage of other important healthcare legislation: Reinstating the adult dental bene it under Medicaid. Funding the Aging and Disability Resource centers that help connect caregivers with needed services. Extending the Hawaii Keiki program, which builds the school-based healthcare workforce and provides direct services to students. HAH also followed several bills of interest to members, including legislation on initial opioid prescriptions and use of de-identi ied healthcare data. There was a lot of discussion at the legislature about the possible repeal of the Affordable Care Act, and potential actions that the state could undertake to preserve some of the consumer protections in the law. 4 13

Public Relations National Legislation HAH s communications team works to elevate the positive image of Hawaii s healthcare systems, correct media misperceptions, and highlight achievements of member facilities. It was a very favorable media year for HAH, with more than 40 earned media placements on RIMPAC, HAH s president and CEO, Hawaii Healthcare Heroes, hospital readmissions, advocacy, long term care and more. HAH Update (weekly e-newsletter) 1,300 subscribers Open rate 25% Industry average open rate 17% During the 2016-2017 iscal year, HAH worked with Hawaii s Congressional delegation on the dominant federal level issue: the possible repeal of the Affordable Care Act. The efforts to repeal and replace the landmark legislation were front and center of debate and activity as the Trump Administration and the new Congress came in. The Association served as a conduit for crucial information that members needed to help defend the law, providing infographics and briefs that explained the negative consequences that proposals to repeal and replace the legislation would have had on the state. HAH also advocated for Hawaii-speci ic issues such as making sure the Prepaid Healthcare Act is protected and providing healthcare to migrants from the Compact of Free Association states. Notably, HAH was asked to endorse an amendment offered by Senator Hirono expressing support for the Medicare program and asking Congress to not privatize the program. 12 5

Quality Leading Change Hi`olani Care Center at Kāhala Nui has been recognized as a 2017 recipient of the Bronze Commitment to Quality Award for its dedication to improving the lives of residents through quality care. The award is conferred through the National Quality Award Program run by an HAH national af iliate, the American Health Care Association and National Center for Assisted Living (AHCA/NCAL), the nation s leading association for long-term and post-acute care organizations. The program honors providers across the nation that have demonstrated commitment to improving quality of care for seniors and persons with disabilities. The National Partnership to Improve Dementia Care in Nursing Homes Hawaii maintains its #1 ranking in the nation as the top state for appropriately low antipsychotic medication use for long-stay nursing home residents. Hawaii had a 40.1% decrease from 2011 to 2016. Hawaii Best in Nation for Lowering Readmissions In 2016, the Centers for Medicare and Medicaid Services (CMS) reported that Hawaii hospitals had the steepest drop in hospital readmission rates in the nation between 2010 and 2015. While hospitals across the nation lowered the overall readmission rate by 8%, Hawaii hospitals outperformed the national average by achieving a 13.4% drop. Sharing Best Practices in Healthcare Quality and Patient Safety HAH Hospital Quality Committee HAH Post-Acute Care Quality Committee HAH Sepsis Best Practices Group The Sepsis Best Practices Group held Hawaii s irst Sepsis Awareness and Educational Day on September 13th, in conjunction with World Sepsis Day. Hospitals shared the steps they have taken to improve early identi ication and treatment of sepsis. 6 Be a part of collaborations across the continuum of care throughout Hawaii. Meet your peers in the industry. HAH Member Committees: Regular Member Divisions - Acute Care Leadership - Long Term Care Leadership (skilled nursing facility executives) - Assisted Living Facility/Adult Residential Care Home Committee (ALF and ARCH executives) - Home Care and Hospice Leadership (home health, hospice, home infusion/pharmacy) Acute Care Quality Committee Awards and Scholarship Committee Board of Directors and Executive Committee Chief Financial Of icer Committee (hospital CFOs) Community Health Needs Assessment Advisory Group Finance Committee Government Relations Committee Hawaii Af inity Team Neighbor Island Committee Post-Acute Quality Committee Public Information Of icer Working Group Sepsis Best Practices Group 11

Events & Education Hospital Improvement Innova on Network HAH offered free or reduced-rate educational opportunities for members in the 2017 iscal year, along with signature events offering opportunities for networking, sharing best practices and receiving updates from national healthcare leaders. HAH also revamped and enhanced its education offerings by adding webinar capability and continuing education units to participants. AANAC RAC-CT Certi ication Course An Introduction to Motivational Interviewing Annual Membership Meeting Advocacy Day Awards & Scholarship Gala Background Check System Info Session Challenging Behaviors in Dementia Care: Recognizing Unmet Needs CMS Priorities and the Medicare Access and CHIP Reauthorization Act Communication Strategies for Engaging in Dif icult Conversations Continence Management Webinar Elder Abuse & Mandatory Reporting Webinar Emergency Preparedness Webinar: Here Comes Hurricane Season! Hawaii Healthcare Heroes Ceremony How to Make Your Staff Flu Busters Joint Commission Resources Custom Education Program Long Term Care DOH Reporting Webinar 10 MACRA Final Rule and its Implications for Clinicians and Health Systems Medicare University Course Partnership for Patients Webinar SSI Psychotherapeutic Medications for Treating Serious Mental Illness Requirements of Participation Workshop Sepsis Awareness Day TeamSTEPPS Master Training The Effective Facilitator The Importance of Advance Care Planning The Post-Acute Care Leadership Symposium From the evaluation of the Joint Commission Resources Custom Education Program: Both speakers were excellent. They were very knowledgeable, clear, engaging, very easy to listen to. They keep the topics fresh and relevant and kept my attention. CMS Partnership for Patients and the Hospital Improvement Innovation Networks Partnership for Patients HEN 2.0 was completed in September 2016, and in October 2017, Centers for Medicare and Medicaid Services awarded contracts for a new iteration of its nationwide quality initiative, the Hospital Improvement Innovation Network (HIIN). HAH is once again partnering with Premier, Inc. for the HIIN work. Twenty Hawaii hospitals have joined HAH in the Premier HIIN, along with community partners, including the Hawaii Department of Health and Mountain Paci ic Quality Health, to form the Hawaii Af inity Team. The HIIN goals are to reduce hospital acquired conditions and reduce hospital readmissions. 7

Emergency Services RIMPAC HAH Emergency Services Coalition The HAH Emergency Services Coalition provides emergency response operations coordination; deployment of response teams and healthcare delivery systems; specialty logistics; and training and preparedness to more than 160 healthcare coalition members throughout the State of Hawaii. These include hospitals, nursing homes, assisted living facilities, community health centers, home health companies, hospices, ambulatory surgical centers, pharmaceutical providers, air and ground ambulance, blood banks and clinical laboratories. The mission is to integrate and coordinate the actions of the healthcare coalition during times of emergency, with the intent of establishing and maintaining an effective and timely system-level response. HAH Emergency Services is a 501(c)3 nonpro it organization. Two Hurricane/Tropical Storm Activations Tropical Storm Darby Hurricanes Lester and Madeline Provided up-to-date situational awareness, activated Operation Support Center and Emergency Operation Center and provided recommendations. Lending a Hand and Keeping Hawaii Prepared Highlights of the 2016-2017 iscal year include: Staffed an Advanced Life Support First Aid station at the 2016 Honolulu Marathon. Developed a communication plan for the Coalition. Provided Incident Command System Training. Developed and provided tabletop exercises and workshops for acute care facilities, postacute care members and other emergency responders. Honolulu City and County May 2016 - All the acute hospitals, DEM, HI EMA, EMS, AMR, Hawaii Life Flight, Red Cross, University of Hawaii at Manoa, Federal Fire Department, HPD, DOH and HFD. Hawaii County May 2016 - All hospitals, Hawaii County Civil Defense, AMR, Red Cross, police and ire departments, etc. Maui County June 2016 - All hospitals, ire department, police, Red Cross, etc. Implemented the new Coalition Status Board on WebEOC. Developed and implemented a new Dialysis Center Status Board on WebEOC. Provided brie ing on new CMS and NFPA rules. Provided webinars on: hurricane preparedness, using WebEOC and HPATS (patient tracking system). RIMPAC 2016 was a two-day full scale humanitarian assistance and disaster relief (HADR) exercise. The HAH Emergency Services Coalition coordinated the exercise in close collaboration with Regional Health Command Paci ic. It was the largest HA/DR exercise ever conducted in the U.S. The Coalition s Disaster Medical Response Team, along with the Regional Health Command Paci ic, the federal Hawaii Disaster Medical Assistance Team, 18 Hawaii hospitals from ive islands, and AMR were given an earthquake/tsunami scenario for the exercise. A 50-bed ield hospital, a disaster aeromedical staging facility, a triage tent, and an infectious disease isolation tent were erected and staffed on Ford Island. More than 250 patient actors with simulated wounds were moved via helicopters, C-130 aircraft, ambulance buses and ground ambulances. The Ford Island ield hospital triaged and sent patients to Oahu hospitals via air and ground transportation. On the second day, the post-acute members and some acute care members participated in a continuation of the scenario. The exercise started with a conference call to provide situation awareness and set the stage for the exercise. Participants activated and staffed their command centers, and were provided with injects or problems, and actions to accomplish within a three-hour window. 8 9