January Virtual Forum Organizational Update and Learning Discussion

1. January Virtual Forum • Organizational Update and Learning Discussion • January 2019 • Our call will begin shortly. Please mute your phone and avoid placing this call on hold.

2. Virtual Engagement Forums | Objectives and Outcomes • OBJECTIVES • Discuss our future design as we journey toward Health 2.0 • Hear your feedback and suggestions • Drive awareness of communication tools and support resources • January Virtual Engagement Forum • (Today) • EXPECTED OUTCOMES • Increased visibility into our most critical initiatives • Better understanding of Health 2.0 initiatives • Messaging and communications that you can share with your regional teams • Monthly Virtual Engagement Forums • (Planning)

3. Welcome • Melissa Tizon, Executive Director, National Communication • Reflection • Greg Till, SVP Talent and Field HR Operations • Safety Story • Greg Hoffman, GVP Finance Planning and Analytics • Recap Previous Meeting • Melissa Tizon • PSJH 2018 Review/Look Forward to 2019 • Greg Till, Greg Hoffman • Learning Discussion • Darci Hall, Executive Director, ITM Operations and Delivery • Q&A Session, Feedback, Closing • Melissa Tizon

4. Reflection

5. Safety Story

6. PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

7. Accelerating to Health 2.0 – Looking Forward! Greg Till & Greg Hoffman

8. Recap: Why we Started our Acceleration Efforts New challenges, opportunities and community needs… May 2018 …outdated and fragmented structures, processes and systems May 2018

9. Recap: Accelerating to Health 2.0 Fueling our vision of Health for Better World Mission Vision Why Health 2.0 Strategy What • Simpler organization | Easier processes, less unnecessary variation, technology enabled • Improved caregiver experience | More compelling roles, consistent access to expertise • Caregiver confidence in future org / senior leadership Outcomes Revenue growth Modernization and functional excellence Ensure sustainability of the Mission: achieving >9-10% EBIDA and >11% ROIC Portfolios Capital efficiency How Our intentions Remain Faithful | Deliver Excellence | Focus on the Future | Modernize | Stay Sustainable | Be Affordable

10. Forum Topics | Modernization and Functional Excellence 5 1 2 3 4 September October August Today November • Care and Delivery Operations and ReduceClinical Variation Diversification Ambulatory Summit: Accelerating to Health 2.0 • Enterprise Shared Services and Ministry Administration • 2018 Review/2019 Transformation Preview • Learning 2.0

11. In Reflection In 2018 we took on BOLD goals

12. In Reflection We launched more than 45 workstreams

13. In Reflection We set a clear direction that focuses on the future, sustaining the mission

14. In Reflection • We launched 4 lines of business Kevin Manemann Physician Enterprises Rhonda Medows, M. D. Population Health Mike Waters Ambulatory Care Robert Hellrigel Home & Community Care

15. In Reflection • Aligning skills and expertise to deliver better service • Simplifying core processes and reducing variation • We began our modernization journey ESS redesigned 6 functions to simplify structures and improve regional support • Optimizing our external spend • Partnering to improve value • Using technology to simplify our work Reducing organizational complexity

16. In Reflection ESS redesigned 6 functions to simplify structures and improve regional support And we started to see the benefits of our Capital Allocation Framework

17. In Reflection Revenue Growth • LOB operating models: Ambulatory, Pop Health, Physician Enterprises, Home and Community Care • New Revenue Growth Initiatives • Regional pilots for Revenue Cycle Modernization • 75% of Enterprise Shared Service functions redesigned to support the future • Simplified process and tools for key functions • Supply vendor efficiency = 3% unit cost reduction YOY • Refinanced debt to lower interest rates • Improved receivable and payable cash balances • Sustained community benefit spend ($1.5B!) Capital Efficiency

18. In Reflection • Journey started! • Health for Better World Highly Sustainably Engaged

19. What do you think went well in 2018? We want to hear from you! What could we have done better together in 2018? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

20. 2019 – A year to breakthrough January • Risk • Real Estate • Learning 2019 (+) • Modern learning experience • Enterprise Resource Planning (ERP) transformation/partnerships that provide highest quality at the best costs • Shared Services reimagined • Future-ready Mission, Real Estate and other services • Replicating success: Cardiovascular Centers of Excellence, Lab, Hospital Provider Payment, Palliative Care • Extending External Spend Excellence: planning, sourcing, management

21. Let’s Hear From You! What makes you most excited about the impact we can have this year? What would you like to see done better in 2019? And what can you commit to help make it happen? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

22. Your Role Continues to be Critical! • CHECK-IN! • Re-engage • Stoke the energy • Encourage new thinking • BE BOLD! • Challenge old ways • Be aspirational • BE PERSISTENT! • Plan for the roadbumps • Stay focused on the value: to the Mission, to our vision, to our communities, to our caregivers May 2018

23. In closing… Giddy up!

24. Modernizing Learning and Education January Forum

25. Our Vision for Learning Engaging Relevant Mission-Aligned Seamless Technology-Enabled Competitive

26. Let’s Hear From You! Based on our vision, what do you see as our biggest obstacle or hurdle? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

27. Well on Our Way… Plus we are engaged in collaborative programs with Clinical, Mission, and other areas. • LEAD : Frontline • Nurse Manager Leadership Program • HR4 Core Leaders • Clinical Executive Leadership • New Caregiver Onboarding • Career Development Center • Clinical Value Improvement • Physician Leadership

28. Let’s Hear From You! Are there any local successes in these areas that we can learn from? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

29. How You Can Help Us Achieve Our Vision Through a triumvirate we can begin to move towards our Learning vision:

30. Let’s Hear From You! What do you believe is a good first step to building a learning culture? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

31. Let’s Hear From You! What does a “modern learning” experience look like to you? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

32. First 4 Stepping Stones to Transformational Learning Care for me Ease my way Know me Increasing access and availability to higher learning through our own university. Invest in our caregivers learning and development by providing high quality and consistent learning. Increase caregiver capacity by reducing required and mandatory hours. Design and deliver personalized learning that will create a better experience for our caregivers.

33. Let’s Hear From You! What do you consider key to being successful with these efforts? PollEverywhere https://www.pollev.com/psjhpoll text PSJHPOLL to 22333 once to join

34. Closing We will be developing additional materials to help you to continue to inspire and engage your teams. Look for more info soon - and let us know if you have local change champions and leaders that you would like to be engaged.

35. Resources • Meeting in a Box(October Summit 2018) • Health 2.0 Communication Toolkit (March 2018) • Caregiverheadlines.org Communication Materials Change Management • How we will Manage Change • Sustaining Caregiver Engagement as we Accelerate Health 2.0 • Reflections and Tools for Caring for Caregivers During Change (Mission resource) • List of Communication Partners • Confidence Boost: Our Future is Bright (2018 Governance Assembly) • Fueling our Future (Venkat Bhamidipati) • Accelerating to Health 2.0 Executive Webcast (May 2018) • Compassion Video Videos Virtual Forums/Summits • Ambulatory Diversification (September 2018) • Summit Materials (October 2018) • Enterprise Support Services and Ministry Administration (November 2018)9) • Attention healthtech startups: Providence Ventures unveils new $150M investment fund, Built in Seattle • Sara Vaezy and other health care leaders share their most innovative ideas – Becker’s Hospital Review • Startup Xealth enables physicians to digitally recommend OTC products – MedCity News • Strong provider directory is step one for digital transformation – MobiHealthNews • 6 Ways PSJH is Organizing for the Future (Rod Hochman) • Providence St. Joseph Accelerates Move Toward More Diverse Operations (Catholic Health World) • Providence on Trend with Strategic Direction (Los Angeles Business Journal) • Three Reasons Providence St. Joseph, Ascension Didn’t Merge –(Health Leaders) External Coverage

36. Thank you!