State College, Pennsylvania

Leadership Profile

Executive Vice President, Finance Chief Administrative Officer

Prepared by

Christine Mackey-Ross, RN Wendy Brower

January 2018

This Leadership Profile is intended to provide information about Mount Nittany Health and the position of Executive Vice President, Finance/Chief Administrative Officer. It is designed to assist qualified individuals in assessing their interest.

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Opportunity Overview

Mount Nittany Health (MNH) in State College, PA, is seeking a dynamic, experienced financial executive to serve in the expanded role of Executive Vice President, Finance/Chief Administrative Officer (EVP/CAO). As the enterprise has evolved into a System, leadership has been reconfigured and expanded to better serve the strategic imperatives. This executive will be joining an organization that is now a regional $500MM system comprised of a hospital, a 150-provider employed medical group, child advocacy center, foundation and collaborative relationships with the region’s largest providers. Creating the synergies and standardization that are required to achieve integration and consistency, as well as eliminate duplication, will be a key requirement of all leadership moving forward.

The next EVP/CAO will serve as a strategic advisor to the CEO and executive leadership on all matters pertaining to finance, business development, capital planning and allocation, supply chain management and investment strategy. Direct reports include capital projects, facilities and supply chain, thus making the executive an integral member of the operations team. One key success measure will be the creation of an infrastructure and approach that gradually prepares the organization for the operating dynamics of the future, while continuing to achieve operating and financial targets and initiatives.

The President & CEO, Kathleen Rhine, who has been with the organization a year, is focused on creating a structure and team that manages the continuum of services provided and aligns inpatient and outpatient operations to promote a more enterprise-focused approach and set the stage for success under future reimbursement. Infrastructure development and decision making are in process of advancing to match the new enterprise focus and this new EVP/CAO will need to ensure that analytical capabilities and financial and support service operations are optimized, such that the organization may accurately determine priorities for reinvestment and growth.

The position is best suited for a systems-thinker who brings a balance of both strategic and financial operations, with the ability to help lead conversations around current and future growth, optimize efficiencies and improve outcomes. To ensure success, this individual will need to be a leader who is adept at building collaborative partnerships and relationships, internal and external to the System. A strong executive who advocates for their team, while also serving as a mentor/coach will enhance the reporting departments; strong communications skills, visibility and transparency are essential traits. A prior focus on supply chain is optimal.

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Position Summary

The EVP/CAO is responsible for providing financial and operational leadership across the System. This EVP/CAO will support the institutional success that aligns with the broader strategic plan, ensuring that MNH continues to achieve its financial and operational targets. They will serve as a key resource and strategic partner to the System leadership team. They will be a resource to the executive team and serve as a key strategic advisor to the CEO. The EVP/CAO will assess the efficacy of financial strategy, analysis and presentation and build a plan with the associated infrastructure that will help to strengthen and optimize financial and other reporting operations. The EVP/CAO provides leadership to the finance, facilities and supply chain teams, serving as a coach and mentor, as well as advocate for the use of accurate and timely financial information to help guide both operational and strategic decision making that is aligned with the overall system strategic plan. MNH currently uses the Meditech Finance, HR and payroll modules, and Kronos for time and attendance and is evaluating those systems and alternatives to assure success. The expanded role gives this EVP/CAO a unique ability to impact expense control, given their leadership of supply chain and capital projects, as well as an integral role in strategic planning. Reporting to the President & Chief Executive Officer, this individual will have as direct reports:

Senior Vice President, Chief Financial Officer Vice President, Facilities and Plant Operations Capital Projects leaders Supply Chain

Responsibilities

Strategic Finance

Help to lead the development of a system organizational structure, optimizing current system finances.

Partner with the CEO and other executives to create a long-term plan for growth that is in alignment with the strategic plan.

Work with Finance leadership to strengthen the finance structure so that it has the bandwidth to perform current operations, while creating an infrastructure and culture that can adapt to future changes.

Continually assesses the market position and establish a process to review all growth opportunities through the implementation of standardization and best practices. Measure projected results against actual outcomes.

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Partner with physician leadership to maintain compensation and benefits that will attract high quality physicians, while establishing uniform metrics for variable pay for performance components.

Engage payers and others involved in reimbursement mechanisms to enhance and maximize the financial position.

Create a “single source of truth” for financial performance and operational benchmarking to permit consistent analysis of current performance and future projects.

Operations

Lead improvement efforts in budget planning, financial reporting and analysis, in addition to revenue cycle optimization, to help improve results and build upon an already strong and stable balance sheet.

Eliminate duplication of processes and reporting, creating data that arises from a consistent source for accuracy.

Provide leadership for the current finance team and structure; ensure a development and succession planning program to enable engagement and ongoing growth of finance team members.

Lead enhancement efforts to identify the appropriate systems, analytics, dashboards and best practices to ensure consistency and standardization of operations and reporting.

Partner to translate strategic imperatives into operational business plans, with financial goals that can be measured and monitored.

Work across the System to identify and support both short- and long-term goals. In doing so, ensure the operations team presents effective, data-based plans for resources and investment by utilizing in-depth analysis, pro forma development and a detailed and transparent presentation of information.

Assess the current financial systems and technology and present a review of this information to leadership to help guide all future technological investment decisions.

Lead the review of capital allocation requests. Appreciates the need for reinvestment in the System to provide high quality care and improve the patient experience.

Manage capital projects to bring them to conclusion on time and on budget.

Assess the scheduled facility capital projects against the strategic plan and ensure that the data and analytics are still valid and viable.

Evaluate supply chain operations, identifying opportunities for consolidation, efficiencies and savings.

Implement a more efficient and reliable contract reconciliation process.

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Relational

Establishes personal and professional credibility throughout the organization as a collaborative and engaging leader, who is an effective listener and problem solver.

Provide balance between financial stability and performance and supporting operations in doing what is right for patients.

Brings physicians into the conversation around expense control, revenue capture, supply chain, etc., creating their buy-in and resulting in their being willing participants in the solutions.

A pragmatic leader, who is flexible in their approach. Willing to respectfully push back when needed.

Develops a mentoring/coaching relationship with their multiple teams. Be viewed as a leader who is fair and honest, yet committed to excellence and high performance.

A good negotiator who is skilled in collaborating with various stakeholders across the System.

Serve as an advocate for MNH in the State College community and across the region.

Candidate Qualifications The following are key requirements of the ideal candidate: Education & Certification A graduate degree in Business Administration, Finance/Accounting or related discipline is required. A CPA credential is highly desirable.

Experience A minimum of 10 years of senior finance leadership experience gained from time spent with

a medical center, health system, or from a large accounting/consulting firm. She/he will have exposure working in a growing and changing system environment.

Experience with partnerships, joint ventures, mergers and acquisitions, and any pre/post deal activities including assessment, integration and alignment.

Pertinent Skill Sets

Revenue optimization

Assessment

Capital planning

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Process improvement

Metric/Dashboard/Reporting

Project management

Physician engagement

Treasury and investment related activities, including debt strategy

Contracting/Negotiation

Building high performing teams

Collaborative leadership

Supply Chain Management

Facilities projects

Staff engagement

Personal Characteristics

Collaborative and team oriented.

Flexibility of thought and a willingness to actively listen to others regarding input and feedback. A genuine, open style and partners well with others.

A creative change agent who fosters a culture that embraces innovation.

Able to move quickly, while ensuring others are able to see and follow that broader vision. Willing and able to make mid-course corrections when needed.

Leads through influence and shepherding versus highly directive.

Strong, but with ego in check. Confident and able to make a decision and then communicate that direction effectively to all constituents.

Honest and leads with integrity and transparency.

Brings a passion to his/her role and exudes positive energy and enthusiasm for the challenges and opportunities presented to them. Able to motivate others and gain positive momentum.

Patient and persistent in approach.

Demonstrates a strong balance of personal and professional life. Possesses a sense of humor and optimism.

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Goals and Objectives

The EVP/CAO will be expected to accomplish the following key objectives within the first 12-18 months:

Establish personal and professional credibility, gain respect and build trust with leadership, peers and their team. Become known as a collaborative, relationship-oriented, visible member of the leadership team.

Assess the current state of financial and other reporting department operations, identifying opportunities for integration and standardization, using best practices to enhance financial analytics and reporting.

Develop metrics, standards and reporting such that finance is seen as the ‘source of truth in data,’ assisting the enterprise in meeting its organizational goals. Eliminate duplication of effort and reporting.

Build a sustainable organizational structure that will meet current needs but has the bandwidth to take on future growth and respond to market evolution.

Establish oneself as a mentor/coach for reporting teams, serving as a resource and advocate to them in helping to promote their development in a way that builds a high performing team, held accountable for performance.

Define, develop, and implement a methodology for clinical service line assessment that is consistent and standardized across the System. Identify tools, dashboards and technology that will create a consistent and reliable pro forma.

Develop a plan for the optimization of revenue cycle, financial operations and the cost accounting system.

Quickly become familiar with the payer environment in Pennsylvania; provide MNH with the expertise needed to negotiate risk-based contracts and lead health system efforts with providers and payers to ensure reimbursement is optimized.

Ensure finance is known as a strategic and collaborative discipline, serving as a resource to the clinical enterprise, while also holding the organization accountable for results and outcomes that are in alignment with the strategic plan.

Develop a strong working relationship with the Board of Directors and its Finance Committee. Viewed as a collaborative and transparent leader who can effectively communicate financial information in a way that is accurate, timely and easily understood.

Assess current capital projects and develop action plans to ensure completion in a timely, cost-effective manner.

Complete the Meditech upgrade installation.

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Mount Nittany Health - Profile History

Where Mount Nittany Health (MNH) stands today is the result of a journey that spans more than 100 years. It all began July 8, 1902, when Bellefonte Hospital incorporated into a frame house with six patient beds. Continual growth led to a number of building and expansion programs, as well as a name change to Centre County Hospital in 1924 and then to Centre Community Hospital in 1971. The Bellefonte Hospital, called the Willowbank Unit, and the Mountainview Unit both operated until 1978, when Willowbank closed.

Major construction projects were completed in 1980 with the South wing, 1984 with the Health Services wing, 1989 with the Branigan wing – Emergency Department, and 1993 with an expansion and renovation. The Centre Medical Sciences Building opened in 1994, and the Centre Community Surgical Center began operation there.

During 1996 and 1997, major additions included a new birthing center, a new transitional care unit, an expansion of the laboratory and an operating suite renovation. An affiliation between Centre Community Hospital, Penn State Milton S. Hershey Medical Center, and Lehigh Valley Hospital created the Penn State Hershey Cancer Institute in September 2000.

In 2003, Centre Community Hospital’s name changed to Mount Nittany Medical Center, signifying its growth as a regional medical center. In 2007, Mount Nittany Medical Center, along with Hershey Medical Center and local physicians added interventional cardiology to its program. In 2010, the Medical Center opened the state-of-the-art East wing.

In 2011, the governing body incorporated Mount Nittany Health System to transition the hospital-based entity into a system organization. It also announced a major renovation and expansion of the Emergency Department, construction of a Comprehensive Cancer Pavilion, and the addition of 51 physicians to its Physician Group.

Today, MNH has emerged as a regional health system, growing in scope and prominence, with the mission of making people healthier. The System includes the parent organization, Mount Nittany Health System, along with Mount Nittany Medical Center, a 260-bed acute care facility with emergency, inpatient and surgical services; Mount Nittany Physician Group (MNPG), a practice with over 150 healthcare providers across 30 specialties and located in 17 convenient locations throughout the region; the Mount Nittany Health Foundation, its fundraising and development entity; and the Children's Advocacy Center, a non-profit organization that provides a community-based, child-focused center to facilitate a compassionate and multi-disciplinary approach to the prevention, identification, intervention and treatment of child abuse.

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Mission

We are here to make people healthier. Vision

To become the most trusted source of healthcare for Central Pennsylvanians. Values

We will treat all patients with dignity and respect, and we will accommodate individual responses to the stress of illness.

We fully support the principles of Patient Rights and Responsibilities. We commit to a service excellence philosophy that strives to meet or exceed patient

expectations.

All patients receive a uniform standard of care throughout all of our facilities, regardless of social, cultural, financial, religious, racial, gender or sexual orientation factors.

Our medical staff works to ensure that patients receive only appropriate and effective tests, procedures and treatments.

We will fairly and accurately represent ourselves and our capabilities to the public. We are committed to constant preparation for the long-term financial viability of MNH,

through responsible utilization of resources in support of our commitment to meet the healthcare needs of the community.

MNH’s leadership will disclose and avoid potential conflicts of interest. All other staff will avoid similar conflicts of interest.

We will maintain an open treatment policy; no patient will be refused evaluation and service based upon sex, age, race, creed, national origin, sexual orientation, infection status or the ability to pay. Transfers to other facilities will occur only when we are unable to provide needed services and only to facilities that provide an appropriate level of care based on our assessment of the patient's needs. Patients may also request elective transfer, and an informed consent process will be followed.

Workforce

Mount Nittany Health employs over 2,500 staff, including over 400 registered nurses. Eighty percent of the workforce is employed by Mount Nittany Medical Center, with the remaining employed by Mount Nittany Physician Group. During the 12 months ended June 30, 2017, the Medical Center turnover rate for all staff was 10.2%. The registered nurse turnover rate for FY 2017 was approximately 4.7%. The Medical Center is 18 months into a three-year labor contract with SEIU Healthcare Pennsylvania (expires June 30, 2019). Included in the labor agreement are 976 nursing staff, technicians, maintenance, and service personnel.

Department of Nursing The Department of Nursing is currently staffed by 500 positions; almost half the staff is prepared at the Associate Degree level, 39% having attained a BSN, with another 14% in progress. Broad variations in census necessitate the use of multiple agency contracts. Satisfaction surveys and HCAHPS scores are good.

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Shared governance is established using Magnet principles, but the organization has not embarked on a formal Magnet journey. Each area does submit a detailed Care and Service plan, tied to the organizational strategy. Meditech is the inpatient electronic record and a major upgrade is underway with implementation in the Spring of 2018. For more than 30 years, all inpatient employees, with the exception of management, have been represented by collective bargaining units with relationships that have been positive. Physician Structures

Mount Nittany Medical Center's (MNMC) medical staff is comprised of 323 active physicians. Several multi-specialty group practices employ most of the physicians providing medical care at MNMC, including two sponsored by competing entities, Geisinger Health System (73 physicians/30% admissions) and Penn State Hershey's medical practices (27 physicians/ 2% admissions). In addition, University Orthopedics (unaffiliated with the University) is a nine- member group with an independent outpatient surgery center accounting for 13% of MNH’s annual inpatient admissions, and is a significant contributor to the health operating margin.

MNPG is a 150 provider physician group operating on the main campus and at 16 other locations in and near State College, PA, accounting for 49% of the annual inpatient admissions. The group became active in 2008 and grew exponentially in January 2011 with the acquisition of a 51-member private multispecialty group, headquartered in the medical office building adjacent to the Medical Center.

Physicians are engaged in governance and operational activities at all levels of MNH, from serving on boards and board committees, membership on operational-level committees, to holding leadership roles in MNPG. All Boards in MNH include physician representation and physicians have been appointed to nearly all Health System Board Committees. One-third of the membership of the Board's strategic planning committee is comprised of physicians. Appropriately, physicians hold all three officer positions on the MNPG Board and the first physician was elected to an officer position on the Health System Board in July 2015. Strategic Position

Under mission and vision, MNH has grown to become the trusted leader in healthcare serving more than 400,000 people in Central Pennsylvania. With more than 2,300 employees, 260 beds, more than 90 employed physicians and seventeen locations, improving access and the patient experience are imperative in its mission to make people healthier.

In addition to achieving excellence and recognition in several service lines, MNH has noted significant expansions and improvements that have demonstrably improved access to care, quality and improved operations. By strategically providing primary care practices and specialty services throughout central Pennsylvania, MNH has positioned itself as the market leader for primary and specialty care while maintaining its brand strength of familiarity and trust. Its relationships with Penn State Hershey, Penn State College of Medicine, Penn State University, Geisinger, and other physician and surgical groups within central Pennsylvania, have

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provided the underpinning for unique and productive opportunities to recruit physicians, balance scope and scale, and integrate services and resources to achieve efficiencies and sustainability for the future. Relationships with Penn State College of Medicine and Penn State Hershey, specifically, have fostered success in academic medicine and a partnership for cancer care.

MNH has also achieved local, state and national recognition including Joint Commission accreditation, American Heart Association Get With The Guidelines® Gold Plus award for Heart Failure, American Heart and Stroke Association Get With The Guidelines®

Gold Plus award for Stroke, Accreditation for Cardiovascular Excellence in Cardiac Catheterization, Golden Apple teaching award, Joint Commission accreditation for Primary Stroke Center, and recognition for Diabetes and Cancer Care.

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The State College Community

Mount Nittany Health (MNH) is located in State College, Centre County, Pennsylvania. Beautiful rolling mountains, broad valleys, clean air, great schools and a focus on innovation – that's Centre County. Add to that, metropolitan experiences, small town charm, unique, all-season recreational activities and historic communities, and you'll understand why this central Pennsylvania haven is a great place to live, work and conduct business. State College is home to The Pennsylvania State University and is the quintessential college town. Known for its hospitality and charm, the town mixes shops, restaurants, and cultural and sporting events. The region is rich with opportunities for connoisseurs of the arts. Here you'll find live theatre, dance performances, museums, artists' studios, and more through an abundance of community organizations, as well as national and international performances through several venues at the University. Not far from the bustle of the town, are picturesque mountains and some of the most beautiful parks and picnic areas. Outdoor enthusiasts enjoy boating, fishing, swimming, hiking, golf, tennis and skiing. Pennsylvania State University offers unparalleled opportunities for cultural, intellectual and sporting activities. Children have opportunities to both private and public schools. The public schools are among the best in the state; State College Area School District's balanced academic competitiveness, accreditation, recognition for excellence, instructional expenditures, and small class sizes have received national acknowledgment.

College Township was named the 7th best place to live in America and Ferguson Township

was named the 12th best place to live in America by Niche in 2016.

State College was ranked 3rd as the lowest stress city in the United States by Sperling's Best Places.

According to Niche, State College ranked as the best town in Pennsylvania, and was named the 14th best town in the country.

State College metropolitan area was ranked as the 3rd safest city in the United States in 2013.

For additional information, visit: www.visitpennstate.org www.statecollege.com www.cbicc.org

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Procedure for Candidacy

Inquiries, nominations and applications are invited. Review of applications will begin immediately and continue until the position is filled. For fullest consideration, applicant materials should be received as soon as possible.

These materials should be sent electronically via e-mail to the Mount Nittany Health consultants, Christine Mackey-Ross, RN and Wendy Brower. Please direct all nominations and resumes through the office of Wendy Brower at MNHEVP@wittkieffer.com.

Wendy Brower Witt/Kieffer

7733 Forsyth Blvd., Suite 725 St. Louis, MO 63105

314-754-6072 wbrower@wittkieffer.com

The Mount Nittany Health values diversity and is committed to equal opportunity for all persons regardless of age, color, disability, ethnicity, marital status, national origin, race, religion, sex, sexual orientation, veteran

status or any other status protected by law.

The material presented in this leadership profile should be relied on for informational purposes only. This material has been copied, compiled, or quoted in part from Mount Nittany Health documents and personal interviews and is believed to be reliable. While every effort has been made to ensure the accuracy of this information, the original source documents and factual situations govern.

All images and logos used in this leadership profile were attained from Mount Nittany Health and/or are owned by Witt/Kieffer via Getty Images.

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Appendix One - Operating Statistics

The institution operates on a fiscal calendar, ending June 30th. MNH has historically seen strong financial performance from operations, and FY16 continues that trend. Volumes in both inpatient and outpatient encounters continue steady increases and the favorable payer mix remains stable.

Mount Nittany Health System – Core Statistics

Fiscal Year 2017

Total Revenue $429 million

Licensed Beds / Staffed Beds 260 / 260

MNMC Community Benefit $23.1 million

Full-Time Equivalents 2,091

Admissions 15, 519

Inpatient Days 54.444

ALOS 3.64

Surgical Procedures 12,504

Emergency Room Visits 58,120

Outpatient Visits (incl. ED) 311,584

MNPG worked Relative Value Units 614,957

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Mount Nittany Health

Operating Income - Financial Data

(dollars in thousands)

Gross Revenues $1,181,239

Net Patient Revenues $420,389

Total Expenses $391,000

Excess of Expenses $29,389

EBITDA Operating Margin 15.8%

Payor Mix Percentages Based on Gross Revenue

Medicare & managed Medicare 46.7

Medicaid 9.2

Blue Cross/Blue Shield 3.9

Highmark 19.1

Health America 2.5

Commercial 8.8

Geisinger Health Plan 4.3

Self-Pay and All Others 5.5

Percentage IP Business (hospital)

42.7

Percentage OP Business (hospital)

57.3

As of January 10, 2018

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