2019 Colorado Payer Day Kaiser Permanente Colorado’s Transformation Sandy Williams Director, Provider Experience and Network Business Operations

Why does Kaiser Permanente need to transform now? For almost 50 years, Kaiser Permanente has been at the forefront of patient-led care in Colorado. Changes in the market have challenged the way we operate and conduct business. Our members are at the heart of everything we do. We have to change the way we work and the way we do business to continue to provide the kind of care and service our members and patients expect. Network Development Provider Contracting

What our transformation seeks to accomplish Our focus is on developing a sustainable long-term strategy, creating a more unified, collaborative and engaged culture, and changing the way we operate. We are confident that through our efforts, we will emerge stronger, healthier, and fully prepared to serve the people of Colorado for many years to come. Network Development Provider Contracting

Transformation Operations Transformation Office defining areas of opportunity Collaboration among key organizational stakeholders in Health Plan, Labor, and Colorado Permanente Medical Group Delivering improvements to processes, policies and strategies that will guide us to reinvent the way we operate Transformation Ambassadors that allow us to share ideas and your concerns Claims processing opportunities Authorization efficiencies Network Development Provider Contracting

Q&A Will We Be Closing KP Medical Offices? Like any business, we regularly evaluate how we operate and we make necessary adjustments to remain competitive in an increasingly challenging market. Our Evergreen Medical Offices were one of Kaiser Permanente’s smallest facilities in the Denver/Boulder service area. Since opening in 2010, we had not seen the patient volume we anticipated at this location. After a thorough review, we decided to close our Evergreen facility, effective Jan. 1, 2019. The Spring Creek Medical Offices pharmacy closed March 15, 2019. We are committed to minimizing the disruption associated with these changes and are helping members transition to nearby Kaiser Permanente medical offices and pharmacies, or other convenient options for care and pharmacy services such as Chat with a Doctor, virtual access to care, and Mail Order Pharmacy. These services receive high patient satisfaction scores and may reduce the need to visit a medical office. Members may register on kp.org to access these services. We are evaluating our members’ needs throughout Colorado and working to use their resources most effectively. Although we recently closed the Evergreen Medical Offices and the Spring Creek pharmacy, we have also opened a second medical office in Pueblo, the Acero Medical Offices. Network Development Provider Contracting

Q&A Will Kaiser Permanente Colorado file for bankruptcy? Absolutely not. With a nearly 50-year track record as Colorado’s largest nonprofit health plan, Kaiser Permanente remains firmly committed to the state and looks forward to serving the people of Colorado for many years to come. We remain committed to our mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. Network Development Provider Contracting

Q&A Why is Kaiser Permanente making staff reductions? To ensure we have the right people in the right jobs to best serve our members, we’re reorganizing some departments and eliminating some staff positions. These decisions were made thoughtfully and carefully to target specific areas of redundancy or overcapacity that’ll have the least impact on our members. None of these reductions will have an impact on the high quality of care and service we provide to our members. All represented staff are being treated in accordance with their negotiated contracts. Affected non-represented employees who do not find new positions within Kaiser Permanente receive a compensation package with severance tied to their years of service, benefit protection for the duration of the severance period, and outplacement assistance. In addition, Kaiser Permanente provides comprehensive reemployment, career, and personal counseling services. Network Development Provider Contracting