OU Health Internal Stakeholder Presentation

OU Health Overview Communications Materials February 2021 OU Health Vision To be the premier health system in Oklahoma and a top tier academic health system leader nationally based on measurable results in delivering high-quality multidisciplinary care, education focused on the needs of our state, and funded research Goals Patient-Centered Care Functional Integration Health System of the Future Attracting and Retain the Best Operational Efficiency Market Leader Statewide Network Enhanced Reputation/Brand What is OU Health? OU Health is a new, fully integrated academic health system formed through the merger of the clinical assets and operations of OU Health Sciences Center with OU Medicine OU University Hospitals Authority and Trust OU Health New Affiliation Agreement OU Health Sciences Center H Education & Research Clinical OU Health Physicians OU Health Hospitals H OU Medicine Target Effective Date: July 1, 2021 Does “OU Health” Already Exist? • “OU Health” was launched as an umbrella brand in October 2020 to represent programs spanning OUHSC and OUMI • New integrated system will authenticate the brand • Virtual healthcare partnership will be replaced with an actual, unified delivery system Is it a New Model? No Nearly all of the top-tier health systems in the United States are AMCs that have a fully integrated clinical structure “VUMC must adopt management structures and practices that enhance its ability to act nimbly and more independently in a rapidly changing health care environment.” - Chancellor announcing the spin out in 2014 “AMCs have four options: form a new system, partner with others in a collaborative network model, merge into a system, or be prepared to shrink in isolation.” - “Advancing the Academic Health System for the Future," 2014 Why Merge? It Is Necessary to Advance our Missions Attract the Best Optimize Resources Enhance our ability to recruit and retain the best professionals and provide a highly integrated and supportive environment in providing high quality care, driving innovation and discovery and a world class teaching environment Optimize our combined revenue, gain cost efficiencies as single, focused health system – which is the economic engine of the AMC Grow Our Reputation Become the premier health system in Oklahoma and rise in the ranks to become a top tier AMC nationally Address Community Needs Make targeted investments in statewide access to care, research and educating clinicians that address the needs of our community and improve health outcomes for Oklahomans Merging puts us in a position to better compete in a rapidly consolidating local market and accelerate our growth to achieve the benefits of this cycle Before and After Current State: OU/OUHSC, OUP, OUMI, and Trust Future State: OUH Culture “Us and Them” (many entities with mixed and unclear accountability) We – one system of care/clear accountability Strategy Two organizations, misaligned strategies One clinical strategy in coordination with OU Decision Making Separate and distinct decision making construct for physicians and hospitals Single leadership structure partnering physicians and administrators (dyad) Financial Management Independent focus on finances – what’s good for Single bottom line for clinical operations that one organization may be bad for the other supports academic investment Funds Flow 150+ comingled funding arrangements that support clinical, teaching and research efforts Minimal, clearly defined funding streams (2) that align the incentives of OU Health and OU Infrastructure Duplicative/redundant infrastructure Single, streamlined platform for clinical operations Investments/Growth Opportunity cost exists in fragmented current state as investments are evaluated independently Nimble and streamlined structure ensures market responsive approach to investment opportunities How is the New System Organized? University Hospitals Authority and Trust OU Health OU H OU Health Physicians Integrated, multispecialty practice entity OU Health Hospitals Adult Health Children’s Health Cancer Health Hospitals, clinics, nonphysician personnel and other infrastructure Community Health The division structure within OUH will integrate all capabilities and programs by service area and patient population Who is on the OU Health Board? The new board and voting procedures (with embedded reserve powers) represent a balanced blend of OU appointees, community leaders nominated by the board and Trust directors University Appointed (5) Community Leaders (5) UHAT Appointed (5) Five directors appointed at the discretion of OU (two must be OU employees, and one must be independent) Five directors elected through a nominating process based on specific criteria and competency-based guidelines Five directors appointed in a manner that honors the historical relationship between the Trust and legacy OUMI, including the state of Oklahoma appointees Revised voting procedures ensure key interests of both OU and the trust are protected Executive Organizational Chart OU Board of Regents OU Health Board of Directors OU President OUHSC Senior Vice President and Provost OU Health Physicians Board of Directors OU College of Medicine Dean Single Physician Leader OU COM Assoc Dean for Clinical Affairs OU Health Physicians President OU Health Physicians Administrative Executive OU Health Chief Executive Officer OU Health Chief Physician Executive OU Health Chief Operating Officer Other Executive Leadership 10 Chief Executive Officer and Chief Physician Executive National Search • A qualified majority of the new OU Health board of directors is required for the selection, evaluation, compensation, and removal of the OU Health chief executive officer and chief physician executive • An executive search firm, Korn Ferry, has been hired to facilitate a national search for the OU Health CEO, in conjunction with a search committee composed of the following members: • Dr Pamela Allen, Associate Professor and Vice Chair of Dermatology • Dr Lynn Mitchell, Chief Medical Officer, OU Health Physicians • Randy Dowell, CEO of University Hospitals Authority and Trust • Dr Jason Sanders, Senior Vice President and Provost, OUHSC and Acting Board Chair of OU Medicine, Inc • Kris Gose, President of University of Oklahoma Medical Center • Chip Keating, Board of Director, OU Medicine, Inc and UHAT • Dr John Zubialde, Executive Dean OU College of Medicine • The search committee will engage diverse representation across each organization and the community to interview candidates and provide input to the OU Health board of directors to inform their decision Note: Search committee members are excluded from applying for the position 11 Final Discussion We know you will have a lot of questions, some today and other may come up later We are committed to answering through ongoing meetings and other various channels, including a rolling FAQ Please submit your questions to: becomingwe@ouhealth.com Updates will be rolling out from Becoming We as we move forward with this important work 12 ... What is OU Health? OU Health is a new, fully integrated academic health system formed through the merger of the clinical assets and operations of OU Health Sciences Center with OU Medicine OU University... Hospitals Authority and Trust OU Health OU H OU Health Physicians Integrated, multispecialty practice entity OU Health Hospitals Adult Health Children’s Health Cancer Health Hospitals, clinics,... Hospitals Authority and Trust OU Health New Affiliation Agreement OU Health Sciences Center H Education & Research Clinical OU Health Physicians OU Health Hospitals H OU Medicine Target Effective