HIGHMARK HEALTH
120 Fifth Avenue, Pittsburgh, PA 15222 www.highmarkhealth.org

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Organizations Filed Purposes: HIGHMARK HEALTH IS THE PARENT ENTITY OF AN INTERDEPENDENT HEALTHCARE SYSTEM. SEE PART III, LINE 1 FOR OUR MISSION, VISION AND VALUES.

INTRODUCTION TO HIGHMARK HEALTH (HH) HH IS THE PARENT ORGANIZATION OF AN INTEGRATED DELIVERY AND FINANCING SYSTEM THAT INCLUDES HIGHMARK INC. AND THE ALLEGHENY HEALTH NETWORK. HH PROVIDES STRATEGIC LEADERSHIP, STEWARDSHIP AND SUPPORT TO THE ALLEGHENY HEALTH NETWORK TO ENABLE IT TO EXECUTE ON ITS CHARITABLE MISSION. HH TOGETHER WITH THE ALLEGHENY HEALTH NETWORK AND WITHIN OUR INTEGRATED DELIVERY AND FINANCING SYSTEM ARE DEDICATED TO IMPROVING THE QUALITY OF CARE AND DRIVING DOWN HEALTHCARE COSTS. INTRODUCTION TO THE ALLEGHENY HEALTH NETWORK HEADQUARTERED IN PITTSBURGH, AHN'S OPERATIONS ARE CONCENTRATED PRIMARILY IN THE PENNSYLVANIA CITIES OF PITTSBURGH AND ERIE AND THEIR SURROUNDING COMMUNITIES. THE AHN SYSTEM IS A PATIENT-CENTERED AND PHYSICIAN-LED ACADEMIC HEALTHCARE SYSTEM THAT PROVIDES COMPREHENSIVE HEALTHCARE SERVICES TO PATIENTS IN WESTERN PENNSYLVANIA AND THE ADJACENT REGIONS OF OHIO, WEST VIRGINIA, NEW YORK AND MARYLAND. AHN OPERATES EIGHT ACUTE CARE HOSPITALS WITH MORE THAN 2,200 BEDS IN QUATERNARY, TERTIARY AND COMMUNITY FACILITIES, EIGHT AMBULATORY SURGICAL CENTERS, SIX URGENT CARE CENTERS, AND FIVE HEALTH + WELLNESS PAVILIONS ("H+WPS"). THE AHN SYSTEM EMPLOYS MORE THAN 1,200 PHYSICIANS WHO PROVIDE A VARIETY OF PRIMARY AND SPECIALTY CARE AT MORE THAN 250 HEALTHCARE SITES THROUGHOUT THE REGION. AHN IS AFFILIATED WITH THREE MEDICAL SCHOOLS AND CURRENTLY EDUCATES MORE THAN 500 RESIDENTS EACH YEAR IN 46 ACCREDITED RESIDENCY PROGRAMS. AHN ALSO CONTROLS A RESEARCH INSTITUTE AND SEVERAL CHARITABLE FOUNDATIONS AND A TRUST THAT SUPPORT CERTAIN HOSPITALS WITHIN THE AHN SYSTEM. AHN PROVIDES AN ARRAY OF POST-ACUTE CARE SERVICES, PRIMARILY UNDER JOINT VENTURE ARRANGEMENTS, INCLUDING DURABLE MEDICAL EQUIPMENT, HOME INFUSION SERVICES AND HOME HEALTH AND HOSPICE SERVICES. AHN ALSO OWNS AND OPERATES A GROUP PURCHASING ORGANIZATION THAT SUPPORTS 87 MEMBERS (WHICH INCLUDE AHN ENTITIES) IN THE REGION, A CAPTIVE INSURANCE COMPANY, AND A CLINICALLY INTEGRATED NETWORK ("CIN"), AMONG OTHER BUSINESSES. AHN'S PLAN IS TO TRANSFORM THE CURRENT MODEL OF HEALTH CARE DELIVERY IN WESTERN PENNSYLVANIA BY ENCOURAGING HEALTH CARE PROVIDERS WITHIN AHN, WHETHER HOSPITALS OR PHYSICIANS, TO USE THE MOST COST-EFFECTIVE VENUE FOR CARE, ADHERE TO THE HIGHEST, EVIDENCE-BASED STANDARDS OF CARE, AND DELIVER SUPERIOR OUTCOMES BY REDUCING UNNECESSARY READMISSIONS AND HEALTHCARE ASSOCIATED COMPLICATIONS. PROVIDING COST-EFFICIENT, CONVENIENTLY ACCESSED CARE DELIVERS VALUE AND BENEFIT TO LOCAL COMMUNITIES, PARTNER HEALTH CARRIERS, AREA BUSINESSES, AND MOST OF ALL TO AHN'S PATIENTS. THE GOAL OF AHN IS TO PROMOTE HEALTH AND WELLNESS IN OUR COMMUNITIES BY PROVIDING SAFE, COMPASSIONATE, AFFORDABLE HEALTH CARE TO ALL WHO SEEK IT, REGARDLESS OF A PATIENT'S RACE, CREED, GENDER, NATIONAL ORIGIN, PHYSICAL OR MENTAL DISABILITY, OR ABILITY TO PAY. VISION AND STRATEGY HH AND AHN ARE FULLY COMMITTED TO BUILDING A VALUE-BASED SYSTEM, REQUIRING A FULL-SCALE CULTURAL CHANGE IN THE WAY THAT CLINICAL SERVICES ARE DELIVERED. THIS INVOLVES MOVING CARE TO LOWER-COST SETTINGS; REDESIGNING CARE MODELS TO PROMOTE INTEGRATION AND CLINICAL STANDARDIZATION AND PASSING THOSE BENEFITS ALONG TO EMPLOYERS AND MEMBERS; REALIGNING PAYMENT TO QUALITY-AND COST-PERFORMANCE; AND EMBRACING NOVEL FORMS OF INTEGRATION AND PARTNERSHIPS AMONG DIFFERENT PROVIDERS AND PAYERS. HH AND AHN BELIEVE THIS PATH HOLDS PROMISE OF CORRECTING MANY OF THE FUNDAMENTAL ISSUES AFFECTING THE HEALTH CARE INDUSTRY TODAY. TRANSITION TO THAT MODEL, REQUIRES SUBSTANTIAL INVESTMENT TO BUILD THE CAPABILITIES AND NEW PROCESSES TO SUPPORT THE NECESSARY TYPE OF CARE, AND REQUIRES A NEW STRATEGY: CUSTOMER VALUE CREATION: AHN AND HH ARE BUILDING SERVICES, CAPABILITIES AND PRODUCTS THAT ARE ALIGNED TO PATIENTS' DEMANDS FOR VALUE (ACCESS, EXPERIENCE, AND QUALITY AT AN AFFORDABLE COST). SUSTAINABLE GROWTH: FOCUSING ON BUSINESSES AND CUSTOMERS WHERE HH-AHN'S COMMITMENT TO CUSTOMER VALUE MOST RESONATES. THAT INCLUDES BUILDING ON HH'S HISTORY OF INVESTING IN DIVERSIFIED HEALTHCARE BUSINESSES THAT CAN ADD JOBS AND VALUE TO THE COMMUNITY. CLINICIAN-LED CARE DELIVERY TRANSFORMATION: CREATING CARE MODELS AND UNDERLYING PRODUCTS AND SERVICES THAT IMPROVE THE EXPERIENCE AND OUTCOMES OF PATIENTS, AND THAT ARE ORIENTED TOWARD REDUCING WASTE IN THE HEALTHCARE SYSTEM, BY PUTTING CLINICIANS IN THE DRIVER'S SEAT. CORE BUSINESS PERFORMANCE: IMPROVING THE CORE SYSTEMS THAT ARE REQUIRED FOR DELIVERING HEALTH CARE. UNPARALLELED EXECUTION: BUILDING THE RIGHT SYSTEMS, PROCESSES AND CARE TEAMS TO ENSURE TRANSFORMATIONAL EXECUTION ACROSS THE NETWORK.

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