The fifth annual Huron Healthcare CEO Forum brought together dozens of the most experienced executives in hospitals and health systems across the country to address challenges, share experiences and assess high-level strategies to achieve success in the year ahead. The Forum also featured executives from leading brands outside healthcare, such as The Home Depot and Coca-Cola, who shared valuable and applicable advice for navigating the rapidly changing healthcare environment.

1. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
1
Leading the Journey:
Cultivating Success in Healthcare
Insights from Leading Healthcare Executives
Hosted by Modern Healthcare Custom Media
March 11, 2015
© 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.

2. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
2
Today’s Presenters
Reynold Jennings
CEO
WellStar Health System
Gordon Mountford
Executive Vice President
Huron Healthcare

3. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
TRANSFORMATIVE CHANGE
Gordon Mountford, Executive Vice President, Huron Healthcare

4. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
4
Fifth Annual CEO Forum
HealthcareCEOForum.com

5. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
5
The Traditional Business Model is Changing
Commercial insurance is declining.
Government subsidized and self-pay segments are growing.

6. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
6
Market Demands 20% to 40% Performance
Improvement

7. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
7
Audience Question: Transformational Change
Which of these five areas do you believe holds the largest
performance improvement opportunity for your organization?
Revenue transition
Scale and integration
Operational excellence
Clinical transformation
Human capital

8. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
RISK AND REWARD / MARKET INTEGRATION
Reynold Jennings, CEO, WellStar Health System

9. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
9
Risk and Reward / Market Integration
 Tectonic Shifts
 Mega Trends
 Healthcare is Local
 Population Impact
 Risk Continuum

10. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
10
Tectonic Shifts
Baby Boomer
Total Cost Growth
Medicaid Expansion
Total Cost Growth
US Debt
Interest Burden

11. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
11
Federal Spending and Revenues (Percent of GDP)

12. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
12
ACA Revenue Reductions
Estimated Changes to Medicare Fee-for-Service Payments, 2013-2022
Reductions in
Annual Updates
to FFS
Payment Rates:
$415 Billion
over Ten Years
Source: Letter from the Congressional Budget Office to the Honorable John Boehner, Page 5,
Table 2, July 24, 2012 .

13. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
13
Mega Trends
Financial Payments FFS to Value Consumerism
Aging of America Physician Shortage/Distribution

14. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
14
Healthcare is Local
 50% Population
in Top 25 MSAs
 #53 MSA: Population
less than 1.0 mm
 #105 MSA:
Less than 500,000
 #185 MSA:
Less than 250,000
Top 25 MSA’s

15. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
15
Population Impact
24 of 25
Top MSAs
Already
Consolidated
Other 415
MSAs Will
Use Other
4 Models

16. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
16
Risk Continuum
Clinical Affiliation
Regional Collaboration
Clinically Integrated
Hospital Network
Accountable Care
Organization
Merger or Acquisition

17. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
POPULATION HEALTH
Reynold Jennings, CEO, WellStar Health System

18. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
18
Population Health
 ACOs
– Pioneer
– MSSP
 CIOs
– Commercial
– Triple Aim
– Total Physician Alignment

19. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
19
CEO Forum Insights
 Take Reasonable Risk
 Data Parity Has Long Way To Go
 Physician Engagement
 Communication
 Focus Efforts Based On Community Resources

20. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
20
Audience Question: Population Health
What do you see as the biggest challenge in the shift to a
population health management approach?
Managing across the full continuum of care
Developing data analytics capabilities
Achieving appropriate scale
Aligning physicians/providers
Developing organizational leadership

21. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
LEADERSHIP IMPERATIVES
Gordon Mountford, Executive Vice President, Huron Healthcare

22. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
22
New Models of Leadership

23. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
23
Taking Reasonable Risk

24. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
24
Need for Urgency

25. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
25
Leading the Transformation Journey
 Requires critical investments in technology, operational
performance, organizational culture, etc.
 All depend on human capital to succeed.
 Three essential elements:
– Operational excellence
– A strategy for transformational change
– The ability to optimize human potential and leadership
 Organizations that combine all three will be in the best position
to succeed.

26. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
26
Ten Questions for Leaders
How are costs aligned with revenue trajectory?
What changes in patient care revenue streams are forecast?
What increases, decreases, or shifts in utilization are
occurring?
What partnerships or alliances are shaping the market?
Where are the greatest opportunities to drive more value in
care delivery – improving outcomes, experiences, or efficiency?

27. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
27
Ten Questions for Leaders (continued)
Is there active engagement with physicians and patients?
Do current hard and soft assets align with the strategy,
revenues, and delivery model, and will they scale effectively?
What changes in organization structure and incentives are
needed?
What are the greatest opportunities today to strengthen the
business, optimize revenues, and align costs?
Are there clear, prioritized goals and the leadership to achieve
them?

28. © 2015 Huron Consulting Group. All rights reserved. Proprietary and confidential.
Questions
28

29. 29
Title and Date