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Overview of Hospitals and Healthcare in

Tracey van Marcke Executive Director, VHREF

June 8, 2017

2 Contents

• Virginia Healthcare Landscape

• Virginia Healthcare Statistics

• Virginia Hospital & Healthcare Association

• VHHA Member Health Systems

3 Virginia Healthcare Landscape

• Virginia has a growing and increasingly diverse population

• Low unemployment and higher family incomes than the U.S. population overall – 4% unemployment rate in March 2017 – $65,015 median income in 2015

• Virginia’s GDP grew by 0.6% in 2016, compared to the national average of 1.5%

• Population health ranking – 19th – is slightly above the national average

• Disparities in health and healthcare access exist in Virginia

• Virginia’s uninsured rate – 10.4% in 2015, ranked 28th nationally

Sources: BEA, Census Bureau, Kaiser Family Foundation, United Health Foundation, VHDA 4 Virginia Healthcare Landscape

• Similar to the national picture, the majority of Medicaid enrollees are children, but the elderly and individuals with disabilities account for most Medicaid spending – 52% of enrollees are children; account for 22% of spending – 26% of enrollees are aged, blind or disabled; account for 67% of spending

• Most Medicaid beneficiaries - 69% - are enrolled in managed care

• Virginia currently has limited Medicaid eligibility for adults – Pregnant women with income up to 148% FPL – Elderly and disabled with income up to 80% FPL – Parents of dependent children with income up to 52% FPL – Adults without dependent children are ineligible

• 191,000 currently uninsured adults remain in the coverage gap – The ACA expands coverage to nonelderly with incomes up to 138% FPL and provides premium tax credits for individuals with incomes between 100-400% FPL – Because Virginia has not expanded Medicaid, those nonelderly adults with incomes below 100% do no qualify for Medicaid or the tax credits

Source: Kaiser Family Foundation, Medicaid in Virginia 5

Virginia Healthcare Landscape

• Virginia is implementing new quality and performance measures to improve primary and preventative care and care coordination

• Virginia is seeking to better coordinate care and control costs for its dual eligible beneficiaries

• Virginia is one of 27 states in which the federal government has set up and is running the Health Insurance Marketplace

• Virginia hospitals and health systems continue to play a safety-net role – $584.9 million in financial assistance or charity care – $333.5 million Medicaid shortfall – $133 million in subsidized health services

• Despite Virginia’s health care safety-net, the state has Health Professional Shortage Areas (HPSAs) and unmet need for care – 90 HPSAs and only 72% of primary health care need met – 50 mental health HPSAs and 83 dental HPSAs, with 61% and 47% of need met respectively

Source: Kaiser Family Foundation, 2017 Annual Report on Community Benefit 6 Virginia Healthcare Statistics

Virginia Population: 8.4 million

Emergency Department Visits: 3,636,082

Inpatient Admissions: 789,171

Babies Delivered: 94,273

Hospitals’ Community Benefit: $1.43 billion

2015 Data

7 Virginia Healthcare Statistics

**Wellmont Health System, Other, Sheltering Arms Corporation, Diamond Healthcare, and Vibra Healthcare each represent <1% 8

Virginia Healthcare Statistics

Virginia Nonelderly Uninsured Rate by County

Source: RWJ Foundation and the University of Wisconsin Population Health Institute

9 Virginia Healthcare Statistics

Source: RWJ Foundation and the University of Wisconsin Population Health Institute

10 Virginia Hospital & Healthcare Association

• 29 member health systems

• 38 VHHA staff, headquartered in Glen Allen

• Affiliates: – VHHA Shared Services – Virginia Hospital Research and Education Foundation – Virginia Business Coalition on Health – Virginia Health Care Waste Management Cooperative – Health Providers Insurance Alliance – ASPR Hospital Preparation Program

11 VHHA Strategic Plan

Vision Through the power of collaboration, the association will be the recognized driving force behind making Virginia the healthiest state in the nation by 2020.

Mission Working with our members and other stakeholders, the association will transform Virginia’s health care system to achieve top tier performance in safety, quality, value, service and population health. The association’s leadership is focused on: principled, innovative and effective advocacy; promoting initiatives that improve health care safety, quality, value and service; and, aligning forces among health care and business entities to advance health and economic opportunity for all Virginians.

12 VHHA Strategic Plan Focus Areas

1. Principled, Innovative and Effective Advocacy

2. Improving Safety, Quality, Value and Service

3. Transforming Data and Analytics Tools

4. Cutting Edge Education and Communication

5. Broadening Membership and Members Impact

13 About Virginia Hospitals

• 107 community, psychiatric, rehabilitation and specialty hospitals

• 18,881 hospital beds

• 17 designated trauma centers

• 49 percent are rural hospitals

• 51 percent are urban hospitals

• 77 percent of Virginia hospitals are not-for-profit 14 Virginia Hospitals

15 Care

Headquarters: Fishersville, VA

Leadership: Mary N. Mannix, President and CEO

VHHA Board Member: Mary N. Mannix, Past Chair

Hospital: Augusta Medical Center

16 Bath Community Hospital

Headquarters: Hot Springs, VA

Leadership: Kathy S. Landreth, CEO

VHHA Board Member: Kathy S. Landreth

17 Bon Secours Virginia

Headquarters: Richmond, VA

Leadership: Toni R. Ardabell, CEO

VHHA Board Member: Toni R. Ardabell

Hospitals: − Bon Secours Depaul − Bon Secours Maryview − Bon Secours Memorial Regional − Bon Secours Richmond Community − Bon Secours St. Francis − Bon Secours St. Mary’s − Bon Secours Mary Immaculate − Rappahannock General

18 Buchanan General

Headquarters: Grundy, VA

Leadership: Robert D. Ruchti, CEO

19 Carilion Clinic

Headquarters: Roanoke, VA

Leadership: Nancy Howell Agee, President and CEO

VHHA Board Member: Steven C. Arner

Hospitals: − Carilion Franklin Memorial − Carilion Giles Community − Carilion Roanoke Community − Carilion Roanoke Memorial − Carilion New River Valley − Carilion Stonewall Jackson − Carilion Tazewell Community

20 Centra Health

Headquarters: Lynchburg, VA

Leadership: E.W. Tibbs, President and CEO

VHHA Board Member: E.W. Tibbs

Hospitals: − Bedford Memorial Hospital − Lynchburg General Hospital − Southside Community Hospital − Virginia Baptist Hospital

21 Chesapeake Regional Healthcare

Headquarters: Chesapeake, VA

Leadership: Reese Jackson, President and CEO

VHHA Board Member: Kenneth R. Deans, Jr.

Hospitals: − Chesapeake Regional Medical Center

22 Children’s Hospital of The King’s Daughters

Headquarters: Norfolk, VA

Leadership: James D. Dahling, President and CEO

VHHA Board Member: James D. Dahling

23 Children’s National Health System

Headquarters: Washington, DC

Leadership: Kurt Newman, MD, President and CEO

VHHA Board Member: Kurt Newman, MD

Hospitals: − Children’s National Medical Center

24 Community Health Systems

Headquarters: Franklin, TN

Leadership: Wayne T. Smith, Chairman and CEO

VHHA Board Member: Trent Nobles

Hospitals: − Southampton Memorial Hospital − Southern Virginia Regional − Southside Regional Medical Center

25 HCA Virginia

Headquarters: Richmond, VA

Leadership: Tim McManus, President

VHHA Board Member: Tim McManus Hospitals:

− CJW Medical Center – Chippenham − CJW – Johnston-Willis − Dominion Hospital − Henrico Doctors’ Hospital − John Randolph Medical Center − Parham Doctors’ Hospital − Lewis-Gale Medical Center − Lewis-Gale – Alleghany − Lewis-Gale – Montgomery − Lewis-Gale – Pulaski − Reston Medical Center − Retreat Doctors’ Hospital − Spotsylvania Regional − StoneSprings Hospital Center 26

HealthSouth

Headquarters: Birmingham, AL

Leadership: Jay Grinney, President and CEO

VHHA Board Member: Thomas J. Cook

Hospitals: − HealthSouth Rehabilitation Hospital of Virginia − HealthSouth Rehabilitation Hospital of Petersburg − The Rehabilitation Hospital of Southwest VA − HealthSouth Rehabilitation Hospital of Federicksburg − HealthSouth Rehabilitation Hospital of Northern Virginia

27

Inova Health System

Headquarters: Falls Church, VA

Leadership: J. Knox Singleton, CEO

VHHA Board Member: John L. Fitzgerald

Hospitals: − Inova Alexandria − Inova Fair Oaks − Inova Fairfax − Inova Loudoun − Inova Mount Vernon

28 Lake Taylor Transitional Care Hospital

Headquarters: Norfolk, VA

Leadership: Thomas J. Orsini, President and CEO

VHHA Board Member: Thomas J. Orsini

29 LifePoint Health

Headquarters: Brentwood, TN

Leadership: William F. Carpenter, III, Chairman and CEO

VHHA Board Member: Peter M. Mulkey

Hospitals: − Clinch Valley Medical Center − Danville Regional Medical Center − Fauquier Hospital − Memorial Hospital of Martinsville and Henry County − Twin County Regional Healthcare (a Duke Lifepoint Hospital) − Wythe County Community Hospital

30

Mary Washington Healthcare

Headquarters: Fredericksburg, VA

Leadership: Michael P. McDermott, MD, President and CEO

VHHA Board Member: Michael P. McDermott, MD, Secretary- Treasurer

Hospitals: − − Stafford Hospital

31 Mountain States Health Alliance

Headquarters: Johnson City, TN

Leadership: Alan Levine, President and CEO

VHHA Board Member: Anthony E. Keck

Hospitals: − Dickenson Community Hospital − Johnston Memorial Hospital − Norton Community Hospital − Russell County Medical Center − Smyth County Community Hospital

32

Novant Health

Headquarters: Winston-Salem, NC

Leadership: Carl S. Armato, President and CEO

VHHA Board Member: Melissa L. Robson

Hospitals: − Novant Health UVA Health System Culpeper Medical Center − Novant Health UVA Health System Haymarket Medical Center − Novant Health UVA Health System Prince William Medical Center

33 Pioneer Community Hospital of Patrick County

Headquarters: Stuart, VA

Leadership: Jeanette Filpi, Administrator

34 Riverside Health System

Headquarters: Newport News, VA

Leadership: William B. Downey, President and CEO

VHHA Board Member: Barry L. Gross

Hospitals: − Hampton Roads Specialty Hospital − Riverside Behavioral Health Center − Riverside Doctors’ Hospital Williamsburg − Riverside Regional Medical Center − Riverside Rehabilitation Institute − Riverside Shore Memorial − Riverside Tappahannock − Riverside Walter Reed 35

Sentara Healthcare

Headquarters: Virginia Beach, VA

Leadership: Howard Kern, President and CEO

VHHA Board Member: Michael V. Gentry, Chairman

Hospitals: − Sentara CarePlex Hospital − Sentara Halifax Regional − Sentara Leigh Hospital − Sentara Martha Jefferson − Sentara Norfolk General − Sentara Northern Virginia Medical Center − Sentara Obici Hospital − Sentara Princess Anne − Sentara RMH Medical Center − Sentara Virginia Beach General − Sentara Williamsburg Regional Medical Center 36

Sheltering Arms Physical Rehabilitation Centers

Headquarters: Richmond, VA

Leadership: Mary Zweiful, President and CEO

VHHA Board Member: Mary Zweiful

Hospitals: − Memorial Regional Campus − St. Francis Campus

37

Universal Health Services

Headquarters: King of Prussia, PA

Leadership: Alan B. Miller, CEO

VHHA Board Member: Jaime Fernandez

Hospitals: − Virginia Beach Psychiatric Center − Cumberland Hospital for Children and Adolescents − Poplar Springs Hospital − Kempsville Center for Behavioral Health − Newport News Behavioral Health Center − North Spring Behavioral Healthcare

38

University of Virginia Health System

Headquarters: Charlottesville, VA

Leadership: Teresa A. Sullivan, President

VHHA Board Member: Pamela Sutton-Wallace

Hospitals: − UVA Transitional Care Hospital − University of Virginia Medical Center − UVA-HealthSouth Rehabilitation Hospital − Novant Health UVA Health System Culpeper Medical Center

39

Valley Health

Headquarters: Winchester, VA

Leadership: Mark H. Merrill, President and CEO

VHHA Board Member: Mark H. Merrill, Vice Chairman

Hospitals: − Page Memorial Hospital − Shenandoah Memorial Hospital − Warren Memorial Hospital − Winchester Medical Center

40

VCU Health System

Headquarters: Richmond, VA

Leadership: Marsha D. Rappley, MD, CEO

VHHA Board Member: Deborah W. Davis

Hospitals: − Children’s Hospital of Richmond at VCU − MCV Hospitals and Clinics − VCU Health Community Memorial Hospital

41

Vibra Healthcare

Headquarters: Mechanicsburg, PA

Leadership: Brad Hollinger, Chairman and CEO

VHHA Board Member: Linda Tiemens

Hospitals: − Vibra Hospital of Richmond

42

Virginia Hospital Center

Headquarters: Arlington, VA

Leadership: James B. Cole, President and CEO

VHHA Board Member: James B. Cole

43 Wellmont Health System

Headquarters: Kingsport, TN

Leadership: Bart Hove, President and CEO

VHHA Board Member: B. Eric Deaton

Hospitals: − Wellmont Lonesome Pine Hospital − Mountain View Regional Medical Center

44