St. Luke’s Health System “One St. Luke’s” Serving Our Community

1. St. Luke’s Health System“One St. Luke’s” Serving Our Community

2. More Than a Century of Caring: 1902-2010 Our Mission “To improve the health of people in our region” • Not-for-profit • No investors or stockholders • Community Ownership • Community Governance • Excess revenues reinvested in people, facilities, and technology • Philanthropic support stays at St. Luke’s and in Idaho

3. St. Luke’s Health System A Brief History 1902– St. Luke’s Hospital founded in Boise. 1928 – St. Luke’s opens new four-story hospital at the corner of Bannock and First Street. 1952 – St. Luke’s opens a new $1 million expansion becoming Idaho’s largest hospital with 245 beds. 1968 – Dr. Rodney Herr performs the first open-heart surgery in Idaho at St. Luke’s. 1972 – Mountain States Tumor Institute (MSTI) created. 1996 – St. Luke’s Meridian opens as outpatient facility. 2000 – St. Luke’s Wood River opens. 2001 – St. Luke’s Meridian opens as full-service community hospital. 2006 – St. Luke’s and Magic Valley Regional Medical Center form partnership; St. Luke’s Health System is created with St. Luke’s Boise/Meridian, St. Luke’s Wood River, and St. Luke’s Magic Valley. 2010 – McCall Memorial Hospital joins St. Luke’s becoming St. Luke’s McCall. 2011 – St. Benedict’s joins St. Luke’s becoming St. Luke’s Jerome. 2012 – St. Luke’s opens St. Luke’s Nampa Medical Plaza St. Luke’s Hospital opened in this Boise home on December 1, 1902.

4. St. Luke’s Health System 2012 St. Luke’s Boise Beds: 399 Employees: 6,035* St. Luke’s Meridian Beds: 167 Employees: 1,372 St. Luke’s Magic Valley Beds: 228 Employees: 1,978 St. Luke’sWood River Beds: 25 Employees: 379 St. Luke’s Jerome Beds: 25 Employees: 178 St. Luke’s McCall Beds: 15 Employees: 222 * Includes, St. Luke’s Eagle Health Plaza, outlying MSTI and medical clinics, and system staff.

5. St. Luke’s Health System Idaho’s Largest Health Care Provider • 6hospitals • 100+ clinics • 866 licensed beds • 1,000+ physicians • 10,000+ employees • 1.8 million outpatient visits each year

6. St. Luke’s Health System – A Community Asset St. Luke’s is community-owned. St. Luke’s is Idaho-based and Idaho-led. The only Idaho-based health system. Governed by a volunteer board of directors comprised of local community leaders. St. Luke’s is not-for-profit. 100 percent of net revenue is reinvested in the organization and the communities served. St. Luke’s accepts all patients regardless of their ability to pay.

7. Idaho’s Most Awarded Health System • Recent Awards: • St. Luke’s MSTI designated as an National Cancer Institute Community Cancer Center • St. Luke’s Boise Meridian Medical Centers are a Health Grades Distinguished Hospital for Clinical Excellence™. • Consumer ChoiceAward – ongoing since 2001 • Thomson Reuters 50 Hospital for Cardiovascular Care • Proud to be a Magnet-designated Hospital for Nursing Excellence

8. St. Luke’s Areas of Focus: The 3 E’s People • Excellence: • In all that we do • Efficiency: • Good stewards of our community’s resources • Lean implementation • Engagement: • Of employees and physicians • Our people are St. Luke’s most valuable resource STEWARDSH I P QUAL I TY SERVICE RELAT IONSHIPS 8

9. St. Luke’s Health System by the Numbers St. Luke’s Boise Babies Delivered: 4,158 Inpatient Visits: 25,309 Outpatient Visits: 796,693 St. Luke’s Magic Valley Babies Delivered: 1,613 Inpatient Visits: 10,719 Outpatient Visits: 518,567 FYE Numbers (9/30/2011) St. Luke’s McCall Babies Delivered: 83 Inpatient Visits: 456 Outpatient Visits: 67,304 St. Luke’s Meridian Babies Delivered: 1,185 Inpatient Visits: 10,046 Outpatient Visits: 311,067 St. Luke’s Wood River Babies Delivered: 221 Inpatient Visits: 1,333 Outpatient Visits: 78,351

10. St. Luke’s Health System Main Service Lines • St. Luke’s is home to Idaho’s only Children's Hospital. • St. Luke’s Children’s Hospital at our Boise facility is a hospital within a hospital. • St. Luke’s Children’s Hospital has Idaho’s largest and most experienced Level III Newborn Intensive Care Unit and the state’s only Pediatric ICU and Hospital School. • First open-heart surgery in Idaho performed at St. Luke’s in December 1968. • St. Luke's provides cardiac care for heart patients throughout Idaho, and in parts of Oregon, Nevada, and Utah. • St. Luke's provides more heart procedures than any other hospital in Idaho. • Founded in 1971, MSTI has become Idaho’s largest cancer care provider. • St. Luke’s MSTI treats approximately 800 patients each day from Idaho, Nevada, Utah, and Oregon. • St. Luke’s MSTI is one of only 30 National Cancer Institute Community Cancer Centers.

11. St. Luke’s Health System Core Values • Integrity – Being honest; doing the right thing, even when no one is looking. • Compassion –Acting to help others in need, and doing so with kindness and understanding. • Accountability – Being responsible for your job duties, the quality of your work, and the consequences of your actions. • Respect –Being considerate of other people, their property, and their point of view. • Excellence –Always doing your best and doing what is best, in every situation.

12. Transforming Healthcare St. Luke’s is transforming so that our patients experience better health and better care at lower cost, our Triple Aim. VALUE

13. Our Income Comes from Three Places Debt (Loans) Philanthropy Operations

14. SLHS Payer Mix

15. Financial Summary – Last 5 Years

16. Community Benefit STEWARDSH I P QUAL I TY PEOPLE SERVICE RELAT IONSHIPS People 16

17. St. Luke’s Health System Economic Impact Idaho’s largest private employer: 10,000+ jobs Annual salaries and benefits for employees: $450 million. University of Idaho Economic Impact Study - 2009 Economic Multiplier Effect of St. Luke’s Produced nearly $1.87 billion in sales Generated more than 18,700 jobs Produced $36.7 million in sales and property taxes (indirect business taxes)

18. St. Luke’s Health System – 2010 to 2020 St. Luke’s must invest $1.28 billion over the next decade to continue providing the exceptional level of care that people of our communities expect and deserve. Philanthropy is critical to achieving our long-term goals. • We will work with community leaders and donors to raise $128 million over the next decade

19. Future Investments in St. Luke’s Communities • New Facility in Nampa – Hospital, ED, and Medical Plaza • New Facility in Fruitland – Medical Plaza • Electronic Medical Records – “One Patient, One Record” • A new Healthy Living Center in Meridian • Expanded Cancer Services in Meridian, Boise, Nampa, and Fruitland • Expansion of downtown Boise campus • Children’s Hospital expansion

20. St. Luke’s Health SystemPerspective on Health Care Reform • Positive: • 10 million – 30+ million more people with health insurance; coverage for folks with a pre-existing condition • Concerns: • Cuts to Medicare and Medicaid to pay for “reform” • Provision of health insurance for all not supported by adequate supply of primary care providers and health care services • Likely increase in number of Medicaid beneficiaries. Medicaid doesn’t cover our costs. • St. Luke’s Health System position paper: www.stlukesonline.org 20

21. St. Luke’s Health System ChallengeBecoming an Integrated Health Care System Driven by the unified efforts of physicians, community leaders and committed employees St. Luke’s will provide: A comprehensive health care delivery system with convenient, timely access to care providers. Safe, effective and efficient care with a strong focus on wellness and prevention throughout our patient’s lives and across our health system. Timely and convenient access to health care data across St. Luke’s Health System with a system-wide electronic record system (one patient, one record).

22. The St. Luke’s Health System Promise • We will focus on providing value to those we serve. Our aim is to achieve superior outcomes at the lowest possible cost. • In all that we do – we will never lose sight of the reason we are here… to serve patients.