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

2. 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.

3. How to Participate in Today’s Web Seminar How to participate in today’s Webinar presentation Enter your unique audio pin located in your Webinar audio pane.Enter your unique audio pin located in your Webinar audio pane. We will have time for Q&A at the end of the presentation.We will have time for Q&A at the end of the presentation. Submit your text question using the Questions pane or raise your hand as indicated in the audio pane.Submit your text question using the Questions pane or raise your hand as indicated in the audio pane.

4. Eric Schulz, Manager, Government Programs erics@hfsconsultants.com Mark Gamble, FACHE, Sr. VP/COO, HASC mgamble@hasc.org Trahan Whitten, Principal, HFS Consultants twhitten@hfsconsultants.com

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

6. 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.

7. Why Modern Pricing?

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

9. 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

10. Modern Pricing Work Plan for Hospitals

11. 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

12. Unintended Consequences

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

14. 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

15. 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

16. 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

17. Time for Q&A

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

19. Eric Schulz, Manager, Government Programs (503) 765-5442 C (503) 686-0915 erics@hfsconsultants.com Mark Gamble, FACHE, Sr. VP/COO, HASC (213) 538-0760 mgamble@hasc.org Trahan Whitten, Principal, HFS Consultants (714) 656-4486 C (949) 500-9185 twhitten@hfsconsultants.com