PSJH Overview for NCI Summit & Reverse Expo The Resource, Engineering and Hospitality Group September 20, 2018

“As for me and my house we will serve the Lord” – Joshua 24:15 My Foundation… Who Am I? Career My Center Vision “As for me and my house we will serve the Lord” – Joshua 24:15

Providence St. Joseph Health - Overview PSJH is the third largest health system in the US. We focus on providing care and social services up and down the west coast of the US.

Providence St. Joseph Health - Overview Providing care and social services Caring for those who need it the most (poor and vulnerable) Mission first, profits second (discernment) AND – it’s about our mission and running a business Sustaining our mission for the next 160 + years Our heritage and mission impact and influence everything we do

Our New Business Model Our new model shifts the focus from functional activities to service performance and value From: Current Model Function and cost Wide range of variation from ministry to ministry Regions, Physicians & Nurses as recipients of functional outcomes Limited to no visibility to what “good looks like” – Ministry to Ministry, Region to Region Operational and tactical reviews & prioritization To: Future Model Service performance and value Controlled variation across the system Regions, Physicians and Nurses as part of the service value delivery chain – a partnership Benchmarked service performance & value - Ministry to Ministry, Region To Region Service performance and value reviews & prioritization This … is not about shifting ownership and control, can’t be a top down approach is about co-discovery, co-designing, and co- decision making will require us to stay the course especially when hiccups and tough decision points occur

Improving Service Performance & Value Reducing uncontrolled variation across our service segments will generate value, flexibility, and improved local delivery, while fully leveraging the scale and resource of the system. Service Segments Clinical Supply Services Environmental Services Food & Nutrition Services Facilities Engineering & Energy Management Capital Equipment Management Services Caregiver Consumable Services Taking a balanced view and approach against 4 major improvement tenants: Service Experience – perception and satisfaction with the service interaction Service Delivery – reliability, repeatability and predictability of the service Service Quality – a services ability to meet the min-spec requirements of the customer segment served Service Cost – cost of service delivered

Service Lifecycle Mgmt. High Level Operating Model In order to deliver best in class services, our organization must operate at the highest levels in seven categories of capabilities and functions: Service Lifecycle Mgmt., Planning Mgmt., Sourcing Mgmt. Production Mgmt., Delivery Mgmt., Return Mgmt. and Service Enablement Management #1 #2 #3 #4 #5 Service Lifecycle Mgmt. Planning Mgmt. Designing, Engineering & Deploying great Services Planning for our sourcing, production delivery and returning needs Patients & Customers Sourcing Mgmt. Production Mgmt. Delivery Mgmt. #6 Receiving the highest in service performance and value as defined by experience, delivery, quality & cost Return Mgmt. Sourcing and procuring all needed supplies for our service offerings Producing, assembling, preparing, and handling service offerings in prep for delivery (incl. managing waste) Managing the logistics, delivery and transactions of our services Managing the return of delivered, produced or sourced materials and supplies #7 Service Enablement Performance Mgmt. Workforce Mgmt. Risk & Compliance Mgmt. Quality Systems Data & Intelligence Mgmt. IT Critical capability areas enabling service performance and value Service Segment (s) may require unique capabilities and functions

Our Strategic Imperatives Strategy Alignment Heat Map System Strategies (2022) Our Strategic Imperatives Our Strategies Goals (themes) Advance PSJH Mission, Values and Culture Create an inspiring work experience Deliver high reliability, value and affordability Make PSJH the practice partner of choice in all our communities Steward our resources to improve operational earnings Optimize our community benefit commitments 2022 Metrics 75% of leaders engaged in formation annually Achieve top decile caregiver engagement / retention scores Achieve top decile performance composite metric Partnership metric TBD Grow EBIDA to 10% > 100% of community benefit commitments Goals Be the preferred health partner Transform care and improve Pop health Improve our nation’s mental well-being Extend our commitment to whole person care Simplify and improve access to care Engage with partners in addressing the social determinants of health Consumer loyalty and engagement metrics TBD composite metric of ambulatory quality, care management and access Composite of $1B in mental health funding and lives impacted or saved Achieve top decile goal-aligned care composite metric Grow total people served online and % clinically appropriate encounters online Diversify sources of earnings to ensure sustainability of the ministry Create a clinical research and genomics program that is nationally recognized for breakthrough advances Foster community commitment to our Mission via philanthropy Increase PSJH visibility and voice in advocacy and health reform 20-40% (TBD) EBIDA in diversified revenue TBD clinical trials, scientific wellness Double philanthropic donations to $300M per year PSJH shapes legislation at state and national level Our Caregivers To provide our caregivers with the tools, resources, support and best environment we can so that they can do their best and be their best. measures = Engagement & Safety Leverage lean practices to elevate our capability areas to become industry benchmarks for best in class performance Uncontrolled Variation To minimize the amount of uncontrolled variation that exists within our ministries, clinics, home, retail locations, etc. measures = Uncontrolled Variation We strive to be unanimously recognized as the "best place to work" across the system Manage & Control 100% of all related resources that flow through our service segments and offerings Redefine supplier management and make it a distinctive competitive advantage for our system Service Performance To improve the level of service performance that each and every location receives measures = Experience, Delivery, Quality Leverage facts, data and technology to accelerate our transformation Service Value (revenue & cost) Increase the level of service value: “right size” cost, and generate revenue from the service that we offer measures = Cost of Service, Service Revenue Build PSJH system viable and location consumable Service Segments & Offerings