St. Luke’s Health System

“One St. Luke’s” Serving Our Community

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More Than a Century of Caring: 1902-2010

Our Mission

“To improve the health of people in our region”

Not-for-profitNo investors or stockholdersCommunity OwnershipCommunity GovernanceExcess revenues reinvested in people, facilities, and technologyPhilanthropic support stays at St. Luke’s and in Idaho

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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.

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St. Luke’s Health System 2012

St. Luke’s BoiseBeds: 399

Employees: 6,035*

St. Luke’s MeridianBeds: 167

Employees: 1,372

St. Luke’s Magic ValleyBeds: 228

Employees: 1,978

St. Luke’s Wood RiverBeds: 25

Employees: 379

St. Luke’s McCallBeds: 15

Employees: 222

* Includes, St. Luke’s Eagle Health Plaza, outlying MSTI and medical clinics, and system staff.

St. Luke’s JeromeBeds: 25Employees: 178

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• 6 hospitals

• 100+ clinics

• 866 licensed beds

• 1,000+ physicians

• 10,000+ employees

• 1.8 million outpatient visits each year

St. Luke’s Health System Idaho’s Largest Health Care Provider

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.

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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 Choice Award – ongoing since 2001

• Thomson Reuters 50 Hospital for Cardiovascular Care

• Proud to be a Magnet-designated Hospital for Nursing Excellence 7

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St. Luke’s Areas of Focus: The 3 E’s

People

SERVICE

RELAT IONSHIPS

STEWARDSHIP

QUAL ITY

• 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 resource8

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

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St. Luke’s Health System Main Service Lines

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.

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.

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.

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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.

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Transforming Healthcare

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St. Luke’s is transforming so that our patients experience better health and better care at lower

cost, our Triple Aim.

VALUE

Our Income Comes from Three Places

Operations

Debt (Loans)

Philanthropy

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SLHS Payer Mix

Medicaid14%

Medicare38%

Commercial40%

Self Pay4%

Other4%

Financial Summary – Last 5 Years

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($ in 000's) FY7 FY8 FY9 FY10 FY11

Net Operating Revenue 834,432 898,237 988,552 1,082,195 1,296,938

Cash Flow (EBITDA) 122,902 107,843 134,252 136,189 181,284

Cash Flow Margin (EBITDA) 14.7% 12.0% 13.6% 12.6% 14.0%

Capital Plan 111,013 130,466 158,327 190,559 185,000

Ending Cash 238,067 244,468 487,694 433,552 417,594 Total Debt 228,221 257,661 533,327 531,172 527,124

Cash to Debt Position 9,846 (13,193) (45,633) (97,620) (109,530)

Days Cash on Hand 119 111 189 159 130

Debt to Capital 31.6% 32.4% 48.2% 45.7% 42.7%

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People

PEOPLE

SERVICE

RELAT IONSHIPS

STEWARDSHIP

QUAL ITY

Community Benefit

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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)

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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

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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

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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

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).

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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.

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