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1500 Forest Glen Road Silver Spring, MD 20910-1484 Phone: (301) 754-7000 www.holycrosshealth.org TO: Holy Cross Hospital Staff and Medical Staff FROM: Kevin J. Sexton President & CEO, Holy Cross Health SUBJECT: Creation of Holy Cross Health and Operating Divisions DATE: September 24, 2012 In 2010, our organization set forth a vision for 2014 “to position Holy Cross to accomplish our mission by developing a multi-site organization ready to succeed in an environment characterized by an aging population and an evolving payment and delivery system.” We identified six major strategies to help us achieve that vision: quality, physician engagement, staff excellence, growth, community benefit and sustainability. If you would like to reference the Strategic Plan for Fiscal 2011-2014, please visit HCnet under leadership messages. Toward that vision, we began construction this year on Holy Cross Germantown Hospital and a major reconstruction of Holy Cross Hospital. We opened a third health center for uninsured adults in Aspen Hill. Your day-to-day focus on the “basics” of high quality, efficient and safe healthcare for all earned us distinction as the only hospital in greater Washington and all of Maryland to be recognized as a Top Performer in 2011 and 2010 by The Joint Commission. These efforts and many others taken together have resulted in significant forward progress in terms of our six strategies. The time has come for us to take on another of the vision components – organizing ourselves to do the work ahead as a health care delivery organization that operates two hospitals and a network of three health centers and other entities and maintains a range of relationships with many affiliated physicians. We also must position our organization for a different future in terms of how we coordinate and deliver care both inside and outside the hospital and how we get paid for providing that care in partnership with our physicians. Toward that end, I am pleased to announce the creation of Holy Cross Health and its three operating divisions: Holy Cross Hospital. I am delighted to announce that Judith Rogers will serve as President of Holy Cross Hospital. Judith has provided exceptional leadership to the operating division of the hospital and has been responsible for the success of several key strategic initiatives. Her tenure at Holy Cross Hospital is marked by a series of promotions that reflect her progressively greater contributions in women’s and children’s services, the division of nursing, and operations. Holy Cross Germantown Hospital, which will open in 2014. We will recruit for the position of President of Holy Cross Germantown Hospital now as we begin the mobilization process. Holy Cross Health Network. This entity will serve as the locus for non-hospital care delivery and manage the new relationships with payers and physicians we expect to see in the future. I am delighted to announce that Gary Vogan will serve as President of Holy Cross Health Network. After his successful tenure as Chief Financial Officer, Gary has worked most recently on reimbursement reform and physician and insurance linkages. His vast experience will be extraordinarily helpful to me as we develop a formal structure for this new division. The hospital presidents will focus on ensuring high quality patient care experiences, outstanding clinical outcomes and efficient operations. The president of the health network will focus on the operations of our health centers and primary care practice, the development of our physician network and insurance relations. These positions will report directly to me as the President and CEO of Holy Cross Health (the Maryland Region of Trinity Health). I will retain overall leadership of our consolidated organization and my office will remain here at Holy Cross Hospital. Certain support functions will be provided “regionally” (and will not be duplicated at the hospital or health network level). These regional support functions, which I have identified below, will report directly to me. Each of these areas has a portfolio that links to the six strategies we outlined for our long-term success. The incumbents are listed below who will fill these redefined and evolving roles: o o o o o o o Chief Mission Officer (Sister Rachel Callahan) Chief Financial Officer (Anne Gillis) Chief Strategy Officer (Annice Cody) Chief Quality Officer (Yancy Phillips, MD) Chief Human Resources Officer (Manny Ocasio) Chief Medical Officer (Blair Eig, MD) Chief Nursing Officer (filled initially by the CNO, Holy Cross Hospital, Celia Guarino, RN) The other positions that support regional operations and the office of the President and CEO of Holy Cross Health are: o o o o Chief, Executive and Governance Operations (Roseanne Pajka) General Counsel (Elizabeth Simpson) President, Holy Cross Health Foundation (recruitment is underway) Vice President, Government and Community Relations (Eileen Cahill) The chart below depicts the organizational structure of our consolidated organization. President and CEO Holy Cross Health President, Holy Cross Hospital Chief Mission Officer Chief Financial Officer President, Holy Cross Germantown Hospital President, Holy Cross Health Network Chief, Executive and Governance Operations General Counsel Chief Strategy Officer President, Holy Cross Health Foundation Chief Quality Officer Vice President, Government and Community Relations Chief Human Resources Officer Chief Medical Officer Chief Nursing Officer* * Initially, Chief Nursing Officer role will be filled by the CNO, Holy Cross Hospital Holy Cross. A New Generation of Medicine.SM 2 The newly created space on the fourth floor at the north end of Holy Cross Hospital above the lobby will house the Regional Office of the President and CEO of Holy Cross Health. Joining me in that space will be the Chief Financial Officer, Chief Mission Officer, Chief Quality Officer, Chief Human Resources Officer, Chief Strategy Officer, and Chief of Executive and Governance Operations. You may see this renovated space during an Open House on October 15, 2012 from 2-4 p.m. Housed in Holy Cross Hospital’s first floor administrative suite will be the President of Holy Cross Hospital and other senior hospital leaders. Housed in the medical affairs suite on the first floor will be the office of the Chief Medical Officer, who will take on the additional responsibility of organizing the medical staff of Holy Cross Germantown Hospital but remain on the first floor here at Holy Cross Hospital. Housed in the second floor administrative suite will be the office of the President, Holy Cross Health Network. I expect to begin operating within the new organization structure on November 1. As we move forward, we will be assessing our overall governance and executive management processes and committee structures and working with our leaders as we finalize details of our operating divisions and regional support operations. I envision us making some adjustments to streamline and support our ongoing work. In coming weeks, you will receive more information and role clarification from me and the key leaders of the operating divisions and regional support areas. In addition, I will cover this topic in my October town meetings so you may ask questions directly of me at that time. Thank you for the work you do caring for our patients and for your longstanding and renewed commitment to service excellence. We are a thriving, growing organization because you help us earn the trust of our patients each and every day. As we look toward the 50th anniversary of Holy Cross Hospital in 2013, I hope you share my pride and take a moment to reflect on this very important time in our history. When Holy Cross Germantown Hospital opens in 2014, it will have been 35 years since the last hospital was built in Montgomery County, and we all are a part of this history-making event. There is no doubt in my mind that we are in a such a strong position on key metrics for quality, community benefit, and financial performance because of the work you do every day to get us there and keep us there. Your individual attributes and our collective contributions will serve us well under any future scenario, be it accountable care, a new Medicare waiver in Maryland, or the service to the hopefully tens of thousands of newly insured individuals. I look forward to our very bright future as we expand health care to our growing and aging community and fulfill our mission and commitment to vulnerable and underserved residents. Holy Cross. A New Generation of Medicine.SM 3