Strategic Moves for Enhanced Vitality: North Country Health Services 2005-2010

Strategic Moves for Enhanced Vitality:North Country Health Services 2005-2010Strategic Moves for Enhanced Vitality:North Country Health Services 2005-2010

Strategic & Financial Plan forOctober 1, 2005- September 30, 2010

NCHS Strategic Moves for 2010 2

Collaboration to Build Strategy & Vitality

Our plans have been built from a broad base

of cooperation and input from community leaders, our physician

colleagues and our frontline employees

and managers.

Our future vitality is driven by a new sense of collaboration to better serve our patients and our communities.

Building our success on a foundation of service excellence and new engagement with our frontline workers.

Working together to show we respect and value each of our many individual and team contributions

Our environment demands a bold vision, excellent strategy execution, and an enhanced alliance with MeritCare and other community medical partners

Building our future on solid pillars of:Service, Quality, Growth, Finance & People

Celebration of progress to plan enhances our persistence to succeed.

The essence of strategic planning at NCHS …

Great planning is needed to assure that work gets done to achieve our vision and mission with pride, on budget.

Not reports, but results! Not so much about profits, as about people …

our patients, our residents, our visitors, our communities, our physician colleagues, our employee associates, our volunteers, our frontline managers, our senior leadership of board, medical staff and management.

Not just cash flow, but a culture of caring and curing

Building results, by building respect

Mindful of our heritage, but not constrained by it as we move together into a brighter future.


Strategic Challenges to NCHS Plans:

Need stability with

growth

Geographic distance and demographic diversity

Many decision makers in continuum of care

Complex regulatory

compliance issues

Competition for stakeholders’ loyalty

Large capital requirements

Tough fiscal pressures

Press to deliver on economies of scale

Need to deliver on promise of mission for caring and curingCalls for

enhanced quality and

safety

Press for experiences & engagement of our

physicians, staff, volunteers, & donors

Growing government, media, and bond holder

scrutiny of our performance

Calls for faster, smarter, and more

cost-effective decision-making

processes


Contents of NCHS Strategic & Financial Plan 2010

Letter from Board Chair and CEO Introduction:

Purpose of plan Process to develop plan Monitoring progress of plan execution

Strategic Direction: Mission Matters Vision driven, values based Five Strategic Pillars for Performance Measurable Goals within our Performance Pillars Governance Matters

Links to Financial Plans Capital Budget Operating Budget for NCHS and its Units


Letter from CEO & Board Chairperson

To our valued medical staff colleagues and friends within the region’s health care clinics and programs, our employees and the communities we exist to serve …

Thank you for your past support, and your interests in our future plans to enhance your access to health and healthcare that is of high quality, safe, cost-effective and customized to your unique needs.

Our region and the U.S. health sector face significant challenges regarding our collective desires for more medical technologies, higher quality of services, reduced rise in health service costs, and rising health problems from lifestyles that are not healthy. The needs and challenges are larger than any single group can address on their own. We will all need to plan and act together to meet these challenges.

Our leadership is enthusiastic about our future vitality and our commitment and ability to address these challenges with your help.

Please join us to refine and implement our strategic and financial plans.

Sincerely yours,

Jim Hanko, CEO Dean Crotty, Board Chairperson

February 15, 2005


Introduction

Purpose of plan To guide the development and execution of policies and work by many parties to

enhance the health and health care of people of the Greater Bemidji Region Process to develop plan

People from throughout the NCHS service area were invited to share insights about community health needs and health care system strategies in a web survey

NCHS internal and external stakeholder leaders participated in full day strategy review and development session on January 26

NCHS governance participants and spouses were engaged in sessions that explored vision dimensions and strategies and investments in eight key issue areas (see following pages)

Monitoring progress of plan execution The board and senior management of NCHS will conduct monthly/quarterly

reviews of and reports about the degree of progress being made to each of the strategic and financial performance targets identified in each of the five strategic pillars of: finance, growth, quality, service and people.


Top priority issue areas for planning & investments

Governance participants were invited on Feb 4 to explore actions to enhance NCHS performance in these 8 priority issue areas:

1. Enhancing patient and visitor loyalty with excellent customer service (Pillar 4 Service)

2. Enhancing our culture as the preferred regional employer with excellent employee pride and loyalty (Pillar 5 People)

3. Enhancing our collaboration with MeritCare and other area health providers (Pillar 1, 2, 3, 4, 5)

4. Enhancing our culture driven toward quality outcomes and patient safety (Pillar 3 Quality)

5. Expanding availability of mental health and chemical dependency services (Pillar 2 Growth

6. Protecting our financial vitality with processes to add or drop services (Pillar 1 Finance)

7. Enhancing our role in cardiovascular services (Pillar 2 Growth)8. Expanding physician pride and loyalty with NCHS services and programs

(Pillar 5 People)

Initiatives in all 8 of these areas were defined & are available under separate cover.


5 Performance Pillars support efforts to achieve our NCHS vision

Values Guided

Principled Passion

Mission Based

Finance Growth Quality Service People

NCHS Vision 2010

Our strategy requires synergistic

work among all of our five pillars;

work that is grounded on and

built from our commitment to our

mission, values and principles


NCHS Vision 2010

NCHS is Northern Minnesota’s premier provider system recognized as a seamless & integrated system that delivers

outstanding and progressive health care services

Mission Based

Our Mission is to assure a lifetime continuum of health care services for the people of Northern Minnesota


positioning statements from our leaders.

“Making a positive difference in lives and living”

“Our Community. Our Future.”

“Our people serving neighbors and friends”

“A proud heritage. A bright future.”

“Modern curing. Old fashioned caring”


NCHS Vision 2010

Mission Based

Values Guided:

Principled Passion:

Our Values and Principles Guide Our Work in the 5 Pillars as We Drive Toward Our Vision

P ersonal Customer Services R esponsiveness and Teamwork I ndividualized Care D edication & Commitment E xceeding Expectations of Quality

W orking as a Team, Shared Responsibility E mployee Knowledge and Skills

C ompassion A ccountability and Leadership R espect, Integrity and Diversity E xperience and Innovation

How can we enhance plan execution?

More measurable targets, clearer accountabilities, more results celebrations, more pay for performance


Vision 2010

Pillar

The NCHS New, Board level, Strategic & Financial Plan is built up

from a “Results Hierarchy” of a major goal for each pillar; a strategy to achieve the goal; and three major sub-strategies as key to implement the strategy. Matrix workplans and

budgets are then developed and followed for each of the system’s

operating units and managersHow accomplished

How measured

Lead Strategy

Sub-strategies

Lead Manager

Workplans and

Budgets of Each Unit

Workplans and


Workplans and


Matrix Connections &

Support Across NCHS

What is our goal


Vision 2010


Action Plans & Budgets for Each Division, Department or Unit

Each unit leader asks and answers 2 questions:

1. How can our unit/team best contribute to the achievement of the NCHS “Results Hierarchy”?

2. How can I best earn the work & enthusiasm of my followers to best accomplish my monthly & annual workplans and budgets?

The NCHS “Results

Hierarchy”

Values Guided

Principled Passion

Mission Based

Operate Performance Driven Processes

Expand Role in ED & Chronic Diseases Put the Patient First

Recognize & Reward Service Excellence

Nurture a Culture of Respect & Value

What

How

What

How

What

How

What

How

What

How

“A” Credit Rating 5% More Market ShareTop 100 US Rural Hospital Systems

97% Patient Satisfaction

Top Bemidji Employer

Focus on Cash

Smart Care Management

Processes

Build Philanthropy

Recruit Physicians

Invest in Specialty Centers

Active Marketing

Blame Free Work

24/7 Education

Evidence Based

Medicine

Assess Moments of Truth

Center for

Patients &

Visitors

Transparent Reporting

Earn Physician

Pride & Loyalty

Earn Employee

Pride & Loyalty

Celebrate People Stories Often

Pillar strategy developmentsThe following pages outline the board level definition of what we hope to accomplish, and how, over the next five years within each of the five pillars.

Management will be developing specific workplans for each of the strategies and sub-strategies during the Spring of 2005


Vision 2010

Finance

The NCHS “Results

Hierarchy”


How accomplished

“A” Credit Rating

Focus on Cash Management*

How measured

Exceed S & P/Moody’s Cash & Debt Coverage Ratios

Build Philanthropy*Smart Care Management

Processes*

Lead Strategy

Sub-strategies

Lead Manager Vic and Craig New VPMA Sherri


Support Across NCHS

What is our goal

Workplans and


Workplans and


Workplans and


*Several actions defined under separate cover




Vision 2010

Growth

The NCHS “Results

Hierarchy”

Expand Role in ED & Chronic Diseases

How accomplished

5% More Market Share in All Services

Recruit Physicians: Peds, Cardiology, Ortho*

How measured

MHA Quarterly Data Reports

Active Marketing in All Media*

Invest in Specialty Centers: Cardiac, Cancer, Ortho, Mental

Health/CD*

Lead Strategy

Sub-strategies

Lead Manager Jim Hanko New VPMA Sherri


Support Across NCHS

What is our goal

Workplans and


Workplans and


Workplans and






Vision 2010

Quality

The NCHS “Results

Hierarchy”

Put The Patient First

How accomplished

Top 100 US Rural Health Systems

Blame Free Work Culture*

How measured

Solucient Competition

24/7 Access to Education in Six Sigma & Baldridge*

Lead Strategy

Sub-strategies

Lead Manager Who Who Who

Evidence Based Medicine*


Support Across NCHS

What is our goal

Workplans and


Workplans and


Workplans and






Vision 2010

Service

The NCHS “Results

Hierarchy”


How accomplished


Assess Moments of Truth in Each Service Unit*

How measured

Avatar Systems and Focus Groups

Transparent Reporting for All Units*

Establish Center/Council for Patients & Visitors*

Lead Strategy

Sub-strategies



Support Across NCHS

What is our goal

Workplans and


Workplans and


Workplans and






Vision 2010

People

The NCHS “Results

Hierarchy”


What is our goal

How accomplished


Earn Physician Pride & Loyalty*

How measured

Chamber of Commerce Annual Survey

Celebrate People Stories Often*

Earn Employee Pride & Loyalty*

Lead Strategy

Sub-strategies


Workplans and


Workplans and


Workplans and



Support Across NCHS





Vision 2010


Action Plans & Budgets for Each Division, Department or Unit

Each unit leader asks and answers 2 questions:

1. How can our unit/team best contribute to the achievement of the NCHS “Results Hierarchy”?

2. How can I best earn the work & enthusiasm of my followers to best accomplish my monthly & annual workplans and budgets?

The NCHS “Results

Hierarchy”

Values Guided

Principled Passion

Mission Based


Expand Role in ED & Chronic Diseases Put the Patient First



What

How

What

How

What

How

What

How

What

How

“A” Credit Rating 5% More Market ShareTop 100 US Rural Hospital Systems



Focus on Cash

Smart Care Management

Processes

Build Philanthropy

Recruit Physicians

Invest in Specialty Centers

Active Marketing

Blame Free Work

24/7 Education

Evidence Based

Medicine

Assess Moments of Truth

Center for

Patients &

Visitors

Transparent Reporting

Earn Physician

Pride & Loyalty

Earn Employee

Pride & Loyalty

Celebrate People Stories Often


Governance Matters

Governance Building Blocks

What are the key building blocks for an excellent governance system?

Better Health GainBetter

Health Care

Better Health System

Performance

Better Governance

Better Governance Yields Better Performance


Building Blocks for Great Governance?

Ongoing Assessment

and Refinement

Board Composition KSA Matrix

Size & Structure of

Board

Excellent Committees

Board Information

System

Great Meetings: Calendars Agendas

Board Job Descriptions

Terrific Orientation

Process

Excellent Ongoing

Education Program

Market Needs & Strategic

Plans

The Board of NCHS intends to continuously review and refine its work in all these areas to assure the effective governance of the community’s assets entrusted to its use for community and patient health gain


Financial Planning Matters:

NCHS will develop its capital plan and budget for the period October 1, 2005 through September 30, 2010 over the Summer and Fall of 2005. Board review and approval is to be in August and September

The NCHS operating budgets for our next fiscal year will be built up from each unit, department, service and division during the Summer and Fall for final review and approval by the board in September and October 2005

Our financial planning drives us toward achieving the financial vitality captured in the fiscal ratios of an “A” rated credit as measured by Standard & Poors, Moodys or Fitch

Documents

Strategic Moves for Enhanced Vitality: North Country Health Services 2005-2010