1. Common Understandings Update & Next Steps for Strategic Alliance
Presentation to
MAPS Board of Directors
March 1, 2017
Confidential

2. Board Strategic Retreat December 2015
Partnership Goals
Gain administrative/operational efficiencies
Strengthen relationships between individuals and their care teams to foster safe care
Desired Partner Characteristics
Not for profit alignment
Collaborative
Long term interest in strengthening relationships between individuals and their care teams to foster safe care
Ability to build trust and maintain inclusive collaboration through sensitivity to real and perceived biases or conflicts of interest

3. Board Strategic Retreat December 2015
Deal Breakers
Safe Care Everywhere cannot get lost
Safety remains a priority
Must maintain a continuum focus
No perceived influence by one provider type or organization
Need continued vitality of leadership engagement

4. Common Understandings - Updates Since Nov. 30th MAPS Board meeting
Vision for a durable alliance: UNCHANGED
Stratis Health and MAPS share a common vision for safe care everywhere and have a mutual interest in elevating the voice of patients in support of the vision for safer care
The organizations will strive for seamless devotion and extended capacity to safe care everywhere
The organizations will maintain and deepen community leadership, and streamline operational and administrative activities

5. Common Understandings, continued
Actions Taken:
Adding an “Alliance Agreement” which will be a more formal, legal document implementing the common understandings. This will need to be negotiated and approved before the effective date. This becomes one of several “Closing Conditions”

6. Common Understandings, continued
Governance Principles:
The Parent/Subsidiary relationship is not intended to result in either organization having the power of decision-making over the other
The MAPS board will continue to emphasize leadership engagement in its strategic planning and implementation:
MAPS will plan and implement its annual budget, and carry its own assets and liabilities, but will be part of a consolidated financial statement of Stratis Health.
The MAPS board will hire, supervise and evaluate the performance of its executive
MAPS board will propose its bylaws, governance policies, and procedures.
MAPS Board does not have authority to change its articles or bylaws as related to Stratis

7. Common Understandings, continued
Governance Agreement
Clarifies that board members for both boards will form a joint committee to consider how to leverage the strengths of both boards…

8. Common Understandings, continued
Finances
Key financial assumptions is that MAPS’ membership contributions will continue to support MAPS operations during at least the first two years of the parent/subsidiary relationship.
Stratis Health, as a founding partner of MAPS, is committed to maintaining its current financial commitment of $20,000 per year to MAPS for fiscal year 2017 and 2018, Clarify that no cash exchanged as a term of the Alliance Agreement
MAPS will maintain insurance (either it’s own or through Stratis)

9. Common Understandings, continued
Next Steps
Add Completion Date for “Alliance Agreement” of August 1.
Directs both MAPS and Stratis Health to amend charter documents to accomplish the items in this agreement.

10. Common Understandings, continued
Adds several clauses:
Closing Conditions
Parties will negotiate and approve an “Alliance Agreement” consistent with the terms of the common understandings
Satisfactory results of due diligence by Stratis & MAPS
Finalization of documents, including amendments, charter documents, etc. by Stratis Health and MAPS as contemplated by these common understandings
Completion of any other actions Stratis Health would like MAPS to take prior to closing, such as
termination of the current MMJSO Agreement, or
evidence that MAPS has obtained adequate insurance contemplated under Section 6, if applicable
Completion of any other actions MAPS would like Stratis Health to take prior to closing

11. Common Understandings, continued
Each party will have responsibility for its own expenses incurred in connection with the transaction
This Common Understandings agreement, and any dispute with respect thereto, shall be governed by the internal laws of the state of Minnesota 
The existence and terms of this Common Understandings agreement are subject to the mutual confidentiality agreement executed by the parties on August 23, 2016.

12. Strategic Alliance Expenses summary
MAP for Nonprofits
Nov – January 2017
$15,000
Nilan Johnson Lewis
Dec – January 2017
$4, 368

13. Joint boards task force/committee
From Common Understandings:
Board members of both boards will form a joint board committee to consider how to leverage the strengths of the two boards and breadth of expertise and influence present among board members.
Draft Purpose: To develop a shared understanding of the process and timing for each organization to accomplish the exchange of board members, build relationships, foster learning and sharing between Stratis Health and MAPS boards of directors, and to articulate what “success” of the affiliation means. 

14. Joint boards task force/committee
Draft ideas:
Members: A total six (6) members, equally representing both boards.  Members could be the designated overlapping board members, or could be regular (non-overlapping) board members.
Time commitment (meeting frequency and format): Monthly calls April/May through December.  In December, the task force would recommend to both Boards how to continue to fulfill remaining goals, perhaps quarterly meetings or other combined activities.

15. How will we know if we are successful?
What are our desired strategic outcomes?
Achieve better economies of scale for resources devoted to safety
The patient voice is stronger within both organization
The brands of both organizations will be stronger as it relates to safety
Stakeholders & leaders across the continuum will be engaged in safety work
MAPS will obtain programmatic and administrative infrastructure that meets its ambitions

16. The Next Wave of Patient Safety: Highlights of 1/26 IHI Webinar
Presented by Don Berwick & Derek Feeley
Full presentation archived at:

17. Next Wave of Patient Safety
Don Berwick Opening Comments:
A reset is badly needed in patient safety.
Safety has been displaced by cost concerns.
We live under an illusion of "been there, done that”
We over rely on incentives to fix safety problems
We are "choking" on safety metrics and don't display the good ones we have correctly. 
We make a mistake when we separate safety from quality. "That's like separating apples from fruit."
We remain largely "systems illiterate".
The academic community has not stepped up as much as we need them to. 
Need to to continue to push professional development in med. schools.  

18. Next Wave of Patient Safety
“NEW SAFETY”
From as few things as possible go wrong To as many things as possible go right
From reactive and responsive To proactive and generative
“Failure is not a prerequisite to learn”
From safety projects, To safety systems
From fear, blame and liability To humility, trust, transparency
From keeping patients safe To co-producing safety
From a narrow definition of harm To a broad definition of harm