Introduction Webinar HASC’s Modern Pricing and Transparency Initiative September 10, 2014

Important Reminder The Hospital Association of Southern California (HASC) is a membership organization that seeks to develop consensus, establish public policy priorities, and represent and advocate on behalf of the interests of hospitals and health systems. In concert with its members and member organizations, HASC is committed to establishing and maintaining an environment within which hospitals can continue to provide high-quality patient care. Consistent with HASC’s mission, it is the policy of HASC to comply with all applicable laws, including federal and state antitrust laws. HASC, its Board of Trustees, committees and members come together to discuss topics and issues important to the hospital industry. It is the intent of HASC to comply fully with all legal obligations when exploring issues that might provide general benefit to the industry. HASC acknowledges and recognizes that discussing issues significant to the hospital industry could be characterized as an opportunity to exchange information that could implicate anticompetitive or otherwise unlawful conduct in violation of antitrust laws. Therefore, communications are confined to subjects directly related to regulatory activities or public policy.

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Eric Schulz, Manager, Government Programs Mark Gamble, FACHE, Sr. VP/COO, HASC Trahan Whitten, Principal, HFS Consultants

MPTI is designed to support hospitals implementing CHA’s Modern Pricing

MPTI = Significant Goals Help hospitals make their charges more palatable to consumers and bring hospital charges closer to costs. Help hospitals reduce charges--not reduce hospital revenues. Modern Pricing should be budget neutral to payers and hospitals.

Why Modern Pricing?

MPTI Support Team HASC CHA HFS Consultants Hooper Lundy & Bookman MPTI Work Group Henry Mayo Newhall Memorial Hospital

Objectives of MPTI Help hospitals minimize negative financial impact Remove barriers to hospital success –Educate health plans & CMS Help establish interdisciplinary teams Identify “quick start” strategies Keep CHA informed Track progress Provide encouragement to “press-on” Educate the media and other stakeholders

Modern Pricing Work Plan for Hospitals

MPTI Work Plan for Hospitals Phase 1 –Know where you are starting from –Know where you want to go (and why) –Build a team that can get you from Point A to Point B –Identify Critical Steps unique to your organization Phase 2 –Address the identified Critical Steps

Unintended Consequences

Work Plan Timeline* Hospitals can expect to experience a timeline such as this: * Adapted from the MPTI Work Plan for Hospitals

MPTI Project Plan MPTI Collaborative Work Plan –Focused on removing barriers to hospital participation & success MPTI Hospital Work Plan –Developed to provide a comprehensive approach that minimizes potential negative impacts to your hospital Kick Off Meetings Regular Progress Meetings Open Lines of Communication

Hospital Participation Pilot Hospital Work Group –Diverse –Committed –Leaders/Early Adopters Hospital Work Groups –Prior price modernization progress –Similar geographies (when possible) –Similar demographics –Rural or Urban

What does the MPTI need from you today? Volunteer to implement Modern Pricing Commit to participate in MPTI –Early adopter commitment (pilot hospitals) –The success of the initiative is dependent upon all of us Frequent and open lines of communication with all stakeholders –Only way the initiative can be maximized

Time for Q&A

Next Steps Implement Modern Pricing Sign Up & Participate in MPTI Press On! & Stay the Course…

Eric Schulz, Manager, Government Programs (503) C (503) Mark Gamble, FACHE, Sr. VP/COO, HASC (213) Trahan Whitten, Principal, HFS Consultants (714) C (949)