Your Guide to Lee Health's Strategy

Your Guide to
Lee Health’s
Strategy

2022

A LEADER IS ONE WHO

knows the way,
goes the way &
shows the way

JOHN C. MAXWELL

OUR IDENTITY & PURPOSE

Our Mission and the Values that Guide Us

Our Mission:

To be a trusted partner, empowering healthier
lives through care and compassion.

Our Values:

RESPECT C O M PA S S I O N

We foster an environment of integrity and We care for you and your loved ones
transparency. We show respect for you and like our own. We cultivate a safe,
your choices and one another as colleagues comforting and healing environment
and people. in every interaction.

EXCELLENCE E D U C AT I O N

We strive for excellence in everything we We encourage individual and organizational
do. We uphold the highest standards of learning as a means to promote healthier
safety, quality and deliver an exceptional lifestyles and improve our delivery of care.
experience.

Lee Health FY2022 | 3

A Letter from Our Chief Officers
Leadership Council (COLC) Members

When we updated our mission and vision and introduced our ExceptionalLee Promise, we had no
way of knowing that, in just a few short years, we would be called to navigate the most serious
public health crisis in more than a century.

Without a doubt, our people and organization have risen to every challenge COVID-19 has thrown at us, and we have
done so while continuing to stay true to who we are and to the promise we made. While we have moved “together
forward,” our journey has been, and will continue to be, marked by curves that we cannot see and paths that seem too
dangerous or unfamiliar to travel. In these moments, we will continue to find confidence and courage in knowing we
are not alone on our journey.

As we reflect on the winding path we have already traveled, we recognize there are far more accomplishments than
dead ends, far more moments of hope than discouragement and far more reasons to believe in our future than to
doubt it. These accomplishments did not occur by accident – they are the result of focused determination, teamwork
and, at times, personal sacrifice.

We have come too far to turn back now. Our shared future demands that we continue to move together forward toward
our vision – and that we continue to evolve our strategy roadmap to reflect our present circumstances, our communities’
needs and our organization’s aspirations.

Our strategy for 2022 reflects our continued commitment to advancing our strategic pillars – right culture, right care,
right time and place and right cost. However, the lessons we have learned over the past several years, including those
from the pandemic, have been woven deeply into our language and approach, including:

• P eople, not processes or places, are at the heart of exceptional health care (this includes team members,
providers, consumers, our patients and their families.)

• While we deliver excellent care, navigating the care journey isn’t as easy as it should be. We believe health care
can and should be more person- or human-centered.

• Performance excellence isn’t an initiative; it is the commitment to excellence and the set of integrated processes
that shape all we do as an organization.

• Disparities impact every aspect of health care, including access and outcomes. Our commitmet to strengthening
diversity, equity and inclusion will become increasingly evident in every area of our strategy.

We are excited to share this Guide to Lee Health’s 2022 Strategy with you. It provides information about the journey we
are on and the evolution of our plan. One of our goals for 2022 is to increase ownership of the goals we’ve set based on
our belief that everyone in our organization, regardless of position, has a role to play in helping us achieve our vision.
While there is much we don’t know about the future, one thing is certain: We will continue to move forward, together
with our patients, team members and community.

With gratitude and confidence in our shared future,

STRATEGY SNAPSHOT

Charting Our Direction

We are pleased to introduce the Lee Health strategy pin. The shape will be familiar to you if you’ve used
your phone or computer for directions. We believe staying focused and motivated on a long journey requires
three things – trusted companions, a destination we agree on and regular signs that we are on the right path.

The Lee Health strategy pinpoints to our desired destination: Lee Health’s Vision. Our vision is bold and will
require time to bring about. The inner rings and four quadrants of the pin encompass our strategic pillars –
guideposts that tell us we are heading in the right direction. As a whole, the pin symbolizes our commitment
to delivering exceptional care and experience regardless of location, time or even circumstance.

ERIXGCHETPTCIONALEXPEURLTIEUNRCEE PERRSIGOHNT-CENT
ERED HEALTH
CARE
RIPGAHTTIETNIMTECARE
Lee COST
RESULTS
Lee Health
Strategic Pillars

NAVIG&ATPILOANCE RIGHT CIAL
STRONG FINAN

Our Vision

To inspire hope and be a national leader for
the advancement of health and healing.

Lee Health FY 2022 | 5

ENVIRONMENTAL SCAN

Caution: Limited Visibility Ahead

While we have successfully navigated many challenges as part of our multi-year journey, we expect the
path ahead will remain challenging and somewhat uncertain because of COVID-19 and other factors. With
this in mind, our roadmap for 2022 reflects the challenges we are likely to encounter. Even though we face
a challenging path ahead, we are confident we have the people and processes in place to navigate these
obstacles and move closer to our destination.

Where care is delivered will N ewer private equity and venture- P ayer mix is changing –

continue to shift out of hospitals backed for-profit health care increasing financial losses

and into ambulatory and virtual provider companies are well- from Medicare and Medicaid.
settings. Health systems typically The number of people on
earn two to three times the funded and looking to disrupt. Medicare is expected to grow
revenue for services delivered Health care startups have deep 35% by 2030 and the number
in a hospital versus services financial reserves and are often of people on Medicaid has
provided in ambulatory and less regulated, have fewer long- increased as a result of the
virtual settings. Experts estimate term financial obligations and can pandemic. Often, Medicare and
the pandemic drove 10 years’ focus exclusively on services that Medicaid reimbursement does
worth of telemedicine innovations provide higher reimbursement. not cover the full cost of a care
in roughly 12 months. We This allows them to grow quickly episode – leaving little room,
anticipate consumer preference and redirect patients from health if any, for margin. Given that
for ambulatory, home care and systems to competitors or lower- many health systems operate
virtual care to far outpace growth cost alternatives. with very low margins, a 5%
for inpatient care in the future. change in payer mix could be
devastating.

COVID-19 has significantly T here is growing competition for The workforce is growing older,

strained the finances and services that generate higher net burnout is growing rapidly and
revenue. Today, many health systems’
operations of health systems margins come from pharmacy, higher numbers of professionals
to varying degrees. The need imaging and a few select specialties.
to respond to the pandemic Payer actions, price transparency and are leaving the workforce.
has consumed health system growing competition are likely to drive COVID-19 has accelerated burnout
leadership, and disruptions down reimbursement and, therefore, among physicians, advanced
to patient care (suspension health systems’ ability to generate any providers and nurses. This has
of elective surgeries, lower profit from these services. resulted in 25% of physicians
outpatient and emergency considering early retirement
department utilization) have and 76% of doctors and nurses
resulted in increased costs experiencing depression in 2020.
and lower revenue. It is also Shortages will be compounded
making it more difficult to by increasing pay demands and
accurately predict patient new care delivery models, such as
volumes and revenue. virtual care.

STRATEGIC PLANNING PROCESS

Refining Our Route

Although our desired direction is clearly marked, we must stay vigilant and responsive to the many
twists, turns and roadblocks we may encounter along our journey. Strategic planning is a continuous
process; we all have a role to make sure we successfully deliver on our mission and ultimately arrive
at our vision or destination. The roundabout graphic below illustrates the process we use, which is
commonly referred to as an OODA Loop: Observe, Orient, Decide and Act.

OBSERVE ORIENT

Continuously monitor Determine what will drive our
internal and external near and long-term success
environment
• Where are you currently, relative
• What is the current situation? to where you want to go?
• Where is the industry headed?
• H ow far is it to your destination?

ACT DECIDE

Implement action plans Establish strategic priorities
and continuously improve and allocate resources
performance
• W hat is the exact path you are
• W hat approach and method going to take?
will you utilize to implement
decisions? • H ow are you going to handle
challenges and setbacks?
• What is your action plan?
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TABLE OF CONTENTS

Essentials for the Journey

Leading the Way to a Brighter Future
Elevating the Human Experience in Health Care
2022 Strategy Overview
Our Strategic Pillars and Key Actions
Our Process and Timeline
What to Expect Next

YOUR IMPORTANT ROLE

Leading the Way to a Brighter Future

Three years ago, nearly 1,000 of our leaders came together to usher in A New Day at Lee Health. The
concepts we shared and the conversations that have occurred continue to shape nearly every aspect
of our organization and leadership team’s approach to change.

We recognize that change is the new normal in health care, and helping others navigate change is a core
responsibility of every leader in our organization. As we set out on our journey and further embrace our
role as a guide, there are three things that will be required of all of us.

Know THE WAY

Staying informed is both easier and harder than ever. Information is swirling all around us – from our
personal phones to the beep of our patients’ monitors – making it harder to focus and see the path among
the swirl of distractions. This is at a time when COVID-19 requires us to change course quickly and more
frequently than ever.

Knowing the way will improve your peace of mind, increase your ability to lead others and allow you to
enjoy more of the journey. We encourage you to take the time to read this guide. Stay curious and continue
learning about the trends impacting Lee Health and the broader health care industry.

Go THE WAY

Each of us has a role to play as we make this journey together. We recognize a strategy as far-reaching as
Lee Health’s can feel a little overwhelming. None of us has the ability to achieve our strategy alone. To make
the greatest impact possible as leaders, we must show up ready to do what we can to advance the areas we
oversee and naturally impact. We must then invite those we lead to join us in going the way.

Show THE WAY

As leaders, our team members are looking to us as role models and guides. In addition to living our
ExceptionalLee Promise, our team members (as well as our patients and community) want to know that
we are genuinely caring, fully supportive and collaborative leaders who truly lead the way. When we do
this, those we lead will walk alongside us with confidence in us and our shared future.

Resources Around the Corner

Over the coming months, we will provide you with resources and tools that will make our strategy
more tangible and real for you and those you lead. We encourage you to use these resources and

to help us tell the story of what we are trying to accomplish as we move together forward.

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CORE CONCEPT

Elevating the Human Experience
in Health Care

When we developed the The ExceptionalLee Promise and Lee Health’s Strategy 2022
ExceptionalLee Promise focus on improving the “human experience in health care,” which
three years ago, we heard encompasses our team members, patients and their family members,
loud and clear that we as well as our broader community.
needed to think bigger and
aim higher than improving By focusing on the broader human experience in health care, we are
patient experience alone. acknowledging that patient experience is deeply intertwined with and
inseparable from the experience of our team members. The way we
make decisions and deliver care directly impacts those who receive
it and those who deliver it—both of which are essential to achieving
exceptional outcomes and Lee Health’s vision.

Looking ahead, we will focus on the human principles that bind
us together. By bringing patients and team members together to
solve care delivery challenges, we will create a more responsive,
effective and affordable health care system that truly inspires
better health and advances hope and healing. This will firmly
establish Lee Health as a national leader.

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OUR ROADMAP RIGHT CARE

Strategy Overview Person-Centered Health
for Fiscal Year 2022 Provide safe, individualized care to
promote an optimal quality of life.
RIGHT CULTURE

Exceptional Experience
Deliver a patient-focused experience
through our engaged and service-driven

team members.

STRATEGIC PRIORITIES STRATEGIC PRIORITIES

1 1

Create an environment where team Sustain a culture of safety
members feel valued, and Lee Health that does no harm.

is their workplace of choice. 2

2 Deliver high-quality, equitable,
evidence-based care.
Strengthen patient experience
and consumer loyalty. KEY ACTIONS

KEY ACTIONS • Engage patients, families, caregivers
and stakeholders in key quality and
• D evelop and implement a strategy safety venues.
to strengthen diversity, equity and
inclusion. • A ddress the social determinants
identified in our Community Health
• I mplement a team member retention Needs Assessment.
plan to ensure continuity of our care
with the best talent. • Implement morbidity and mortality
conferences to help us quickly
• D esign and implement a unified identify and address issues.
Voice-of-the-Consumer Program
to focus and fuel our improvement
efforts.

RIGHT TIME & PLACE RIGHT COST

Patient Care Navigation Strong Financial Results
Deliver uniquely convenient Improve the affordability of care and

and seamless care. ensure ongoing financial viability.

STRATEGIC PRIORITIES STRATEGIC PRIORITIES

1 1

Strengthen our high-performing Reduce the financial burden on our
physician and provider network to patients and communities by lowering
enhance access and individualized care.
overall cost of care.
2
2
Innovate approaches to access and
integrated patient care – expanding our Diversify and grow high-value services
for our expanding communities.
reach and impact.
KEY ACTIONS
KEY ACTIONS
• D evelop and implement partnerships
• E xpand the capabilities of Innovatus, with payers and employers that focus
our Clinically Integrated Network to on lowering the overall cost of care.
deliver seamless care.
• D ifferentiate and grow cardiovascular,
• S cale Lee Health’s Front Door orthopedics and oncology service
Strategy to increase volumes and lines.
improve convenience and outcomes
for patients by connecting them with • O ptimize surgical services to
a primary care provider. maximize access and drive excellence.

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RIGHT CULTURE

Exceptional Experience

Together, we will deliver a patient-focused experience through our engaged
and service-driven team members.

We believe a strong, healthy and vibrant culture is essential to creating a genuinely caring, empathetic
and quality experience for our patients and each other. We also believe an exceptional experience leads to
more hope, faster healing and a stronger bottom line. The following three action plans associated with this
strategic pillar are an important part of our efforts to elevate the human experience in health care, which
includes our patients and their families, our team members and the broader community.

ACTION PLANS Develop and implement a diversity, equity and inclusion
strategy.
How We’ll Achieve While diversity, equity and inclusion is organized under Right Culture,
Exceptional Experience it will be woven into every aspect of our 2022 Strategy because it
impacts every area of our organization. As mission-driven health care
SYSTEM providers, we have an obligation to do everything within our reach to
OBJECTIVES strengthen the richness of our community and workforce and eliminate
the disparities that exist in health care today.
How We’ll Measure
Our Progress Develop and implement a team member retention plan.
Our team members are our most valuable asset. By retaining the best
talent, our organization will be better positioned to deliver exceptional
care and great experiences to our patients and each other. This plan
will also help us reduce unnecessary labor costs and our dependence
on contract labor.

Develop a unified voice-of-the-consumer program.
Patients should have a say in how their care is delivered. While
we listen to our patients today, we can and should do a better job.
We want to use our patients’ feedback to focus our improvement
efforts, guide our policies and keep us inspired. This plan will help
us synthesize and better leverage the massive amount of insights
we receive from many sources from surveys to social media.

Objective Target

Full-time Team Member 14.7%
Voluntary Turnover Rate*

System Average Patient 75.9%
Experience Score

*Updated benchmarking will be available during Q1 of FY2022

RIGHT CARE

Person-Centered Health

Together, we will provide safe, individualized care to promote an optimal quality
of life.

We believe everyone deserves to be respected as individuals because each of us has a unique background
and health needs. We also believe the right care requires care to be personalized to the individual receiving
it. By delivering high-quality, culturally competent care that is personalized, we will inspire even more hope
and accomplish even more for our patients.

ACTION PLANS Engage patients, families, caregivers and stakeholders in
key quality and safety venues.
How We’ll Achieve By including more patient, family and team member voices at the table
Person-Centered Health when we are designing our processes and making important decisions,
we are more likely to make better, more informed decisions. We are
SYSTEM able to identify and address issues on the front end – before they
OBJECTIVES impact quality or safety.

How We’ll Measure Address social determinants identified in the Community
Our Progress Health Needs Assessment.
The social determinants of health greatly impact the health of our
community and patients. Through the Community Health Needs
Assessment process, we research the determinants that most impact
our area. Looking ahead, we want to focus heavily on improving
access, which is a major barrier for some of the vulnerable populations
we serve, including the elderly and Hispanic patients.

Implement morbidity and mortality conferences.
Death and complications may be unavoidable in some patients due
to underlying disease processes. However, they may also be associated
with errors or omissions in patient care. The objectives of a well-
run morbidity and mortality conference include identifying adverse
outcomes associated with medical error, modifying behavior and
judgment based on previous experiences, and preventing repetition
of errors that lead to complications. Conferences are non-punitive
and focus on the goal of improved patient care.

Objective Target

Patient Impact – Inpatient 105
48
Merit-based Incentive Payment 1.98%
System (MIPS) Quality Score Lee Health FY2022 | 15

Mortality Rate

RIGHT TIME & PLACE

Patient Care Navigation

Together, we will deliver uniquely convenient and seamless care.

Being on the receiving end of care isn’t something most of us look forward to unless we are experiencing
discomfort – and everyone is wrestling to contain the rising cost of health care. The truth is, navigating
health care can be overwhelming – even for those who work here. When patients get overwhelmed or
disheartened, they go elsewhere or simply don’t receive the care they need. We believe things can and
should be easier and more intuitive.

ACTION PLANS Expand our Clinically Integrated Network (Innovatus)
capabilities to deliver seamless care.
How We’ll Achieve Patient Through our physician and provider network, we will strengthen Lee
Care Navigation Health’s relationship with patients as we work collaboratively to deliver
personalized, coordinated care that creates value for those we serve
and our health system. This requires increasing access points and
building our capabilities in care navigation and financial modeling
on risk-based investments.

Scale our Front Door Strategy.
Primary care is an extremely effective and cost-efficient way to protect
and improve people’s health. By expanding primary care, we are
expanding the front door to Lee Health. This will help us get patients to
the care they need quicker and more seamlessly – improving outcomes
and experience.

SYSTEM Objective Target
OBJECTIVES 15.28%
Medicare 30-day
How We’ll Measure Readmission Rate
Our Progress

Number of Unique Lee Health 9,700
Primary Care Physician Patients

RIGHT COST

Strong Financial Results

Together, we will improve the affordability of care and ensure financial viability.

Let’s face it, health care is expensive, and the way health care spending is growing is unsustainable. Unlike
for-profit health care providers, our Lee Health leadership team and community-led board of directors don’t
have to worry about earning profits for investors in other states. Our focus is on one thing – the health and
well-being of our patients and community. Through thoughtful planning and shared stewardship, we can
keep costs down and earn a small margin. We reinvest our net revenue back into the people we employ,
care we deliver, buildings and equipment we maintain, savings and our community.

ACTION PLANS Develop and implement partnerships with payers and
employers that focus on lowering the overall cost of care.
How We’ll Achieve Strong By working collaboratively with payers, we can achieve more flexibility
Financial Results in how we deliver care – allowing us to innovate and implement new
best practices. This can result in better outcomes for our patients,
which lowers costs for the patient and for the payer. As we increasingly
take on risk-based arrangements with payers, we have an opportunity
to increase our net revenue and reinvest back into improving the way
and places in which we deliver care and honoring the hard-working
people who deliver it day and night.

Differentiate and grow cardiovascular, orthopedics and
oncology service lines.
To strengthen the care continuum for our patients and address growing
competitive pressures, we will invest in and develop partnerships to
grow our cardiovascular, orthopedics and oncology service lines.

Optimize surgical services to maximize access and drive
excellence.
Through a rigorous assessment of our surgical services in 2021, we
identified opportunities to better serve our surgical staff and patients.
This action plan is focused on implementing the recommendations
that were developed based on our assessment findings.

SYSTEM Objective Target
OBJECTIVES Operating Margin %* 5.6%

How We’ll Measure
Our Progress

*Operating Margin excess over budget (5%) funds the incentive plan

Lee Health FY2022 | 17

What To Expect Next

Our strategy comes to life through the work of our team members, employed and
independent physicians, advanced providers and volunteers.

The Strategy & Innovation Team is committed to partnering with you – our genuinely committed team of
leaders. Over the coming weeks and months, we will arm you with even more information and tools so you
can help team members understand where we’re heading, their role in our strategy and how we will hold
each other accountable as we work to achieve our shared goals.

Advancing our strategy, implementing our action plans and working toward our vision will require focused
determination, listening and ExceptionalLee leadership along the way. We are confident in each of you and
our shared future.

Thank you for your hard work and dedication. Here’s what you can expect as we move
into the 1st quarter of Fiscal Year 2022.

STEP 1 Review the Strategic Plan

OCTOBER Vice Presidents will learn about the Strategy, priorities, action plans
and scorecard.

STEP 2 Link Strategic Plan to Division and Department Goals

OCTOBER Through conversations with their leaders above them,
Vice Presidents will begin mapping their team’s contributions
to different strategic goals.

STEP 3 Goal Alignment with Team Members

OCTOBER / NOVEMBER Vice Presidents will meet and have conversations with their teams
to gather input and align around goals and success measures.

STEP 4 Document Goals and Enhance Tracking

DECEMBER FY2022 team goals and targets will be finalized and entered into
Infor and Huddle Boards.

Our goals can only be reached
through the vehicle of a plan,
in which we must fervently
believe, and upon which we
must vigorously act. There is

no other route to success.

PABLO PICASSO

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